Impossible Finance Research Report #15 — Quoll Finance

Context

Before diving deeper into the mechanisms behind Quoll, it is important to first understand the veToken/yield boosting model pioneered by Curve and adopted by Wombat. Curve is an example of an automated market maker (AMM) that specializes in various liquidity pools with like-assets that are pegged to one another. Curve has liquidity pools with various stablecoins and pools. The main attraction for LPs consists of the ability and opportunity to earn yield in the form of platform trading fees without fear of impermanent loss, with the exception of the assets losing their peg. Furthermore, LPs are able to earn Curve’s governance token (CRV) in addition to trading fees in this model.

This is where the veToken model comes into play, as users are able to lock up their tokens for up to four years, receiving veCRV instead. By doing so, this allows veCRV holders to receive a variety of benefits, from voting rights to the CurveDAO, to a share of half the trading fees earned on Curve, as well as a multiplier for boosted CRV rewards for liquidity providers. With the addition of Convex, this further allows users to boost their rewards along with the added benefit of greater liquidity, as Convex allows the ability for liquidity providers to still receive boosted rewards without having to lock up their own CRV tokens.

Wombat adopts a similar vemodel, where WOM holders can lock their WOM for up to 4 years and receive veWOM in return. The longer the user locks his/her WOM, the more veWOM they receive. veWOM applies a boost to all stablecoin and side pools on Wombat, but the APR varies based on the user’s lp position, WOM emission and WOM price. At the time of writing, veWOM holders do not receive fees generated by the protocol, only boosted APRs on the platform.

The importance of stableswaps coupled with veAggregators in any DeFi ecosystem is vital to its success, and with the BNB ecosystem already having successful stableswaps, the lack of a refined veAggregator might just be the missing piece in BSC’s DeFi puzzle. This can already be seen within the ecosystem itself, as daily active addresses on BSC are roughly 1.1 million, in comparison to Ethereum at 450,000. However, if we compare TVL of both the chains, Ethereum has over 5.7x the TVL of BSC. With such a large user base to tap into, the prominence of a proper veAggregator should not be understated. This paves the way for the likes of Quoll Finance being primed to kick start the surge in DeFi activity on BSC.

Project Overview

Introducing Quoll Finance, a veToken aggregator, yield booster and treasury based on-chain incubator. Quoll Finance is launching on BNB Smart Chain (BSC), and it aims to build on top of various protocols to help boost activity within the DeFi ecosystem on BSC. At inception, Quoll Finance will first integrate Wombat Exchange to leverage on its successes: reaching over $200m all-time high total value locked (TVL) and ranking as the third largest decentralized exchange on BSC itself.

The integration between Quoll Finance and Wombat Exchange will build on top of the model first introduced by Convex and Curve, aiming to bring benefits to ecosystem players in the form of liquidity providers as well as $WOM holders.

Consider two user profiles on Wombat. The first user is bullish on and holds the $WOM token, but would not like to be an LP on the protocol to avoid impermanent loss. This user does not receive any benefits to holding $WOM, unlike holders that are LP-ing and receive boosted APRs.

The second user is not bullish on $WOM, does not hold any $WOM, but would like to be an LP on the protocol. This second user will only receive base and not boosted rewards.

Quoll would be the intermediary between these two populations by receiving both their deposits into a smart contract. The second user profile will be able to achieve boosted $WOM rewards, while the first user profile will be able to extract rent in the form of fees from the second user profile — a win-win situation for both parties.

In essence, Quoll Finance allows liquidity providers who don’t own any $WOM to earn through two different ways: trading fees as well as boosted rewards. This works through Quoll Finance allowing liquidity providers to leverage Quoll’s $veWOM supply for boosted yield accumulated by $WOM holders. Liquidity providers will also be able to earn through Quoll’s governance token ($QUO), with the additional opportunity of staking or locking $QUO for additional rewards.

Furthermore, $WOM holders are able to convert their $WOM on Quoll Finance to obtain extra rewards while maintaining the token utilities. By aggregating $WOM on the platform, Quoll can maximize returns and enable capital efficiency for both liquidity providers and $WOM investors. Aside from being what Convex is to Curve, Quoll will aim to symbiotically build on this integration through the following initiatives:

• Quoll Intercosmic uses Layerzero technology to allow a multi-chain experience for users, in order to facilitate the deposit process for users to move funds seamlessly. This will facilitate Wombat Exchange and BNB Chain to access more liquidity and user traction.
• Quoll’s yield aggregator will implement multiple yield boosting strategies with transparent on-chain fund management.
• Quoll will support high-quality projects with potential to boost Quoll communities.
• Quoll will provide a platform where users are able to bribe QUO lockers in exchange for their votes to direct WOM emissions to specific liquidity pairs — similar to the bribing patterns we’re already familiar with.

Project Highlights

• Partners and Investors include Wombat and Incuba Alpha

Quick Metrics

• TTS Allocated to Impossible Launchpad: 5%
• Public Sale Token Price: 1 QUO = 0.01 BUSD
• Total Token Supply: 1,000,000,000 QUO

Investment Thesis

Large initiatives around the traditional veAggregator model:

Quoll will be building on top of the traditional veAggregator model by introducing various initiatives aimed at maximizing interoperability while minimizing barriers to entry. For example, it is a common occurrence for users to have to use third-party bridges to move assets across chains. This is done in order to participate in conventional DeFi protocols that are not deployed on the chain their assets live on. This adds friction, complexity and security vulnerabilities to an otherwise simple user experience. Quoll will be able to solve this issue through “Quoll Intercosmic”, which will allow Quoll and its users to enjoy the benefits of a multichain ecosystem. In essence, Intercosmic allows users to make deposits from any other blockchain through a seamless “one-click” experience, creating various benefits for both Quoll Finance and its users.

Maximizing interoperability will allow Quoll Finance to reap two main advantages: Being able to tap into a larger audience and user base, and increasing access to liquidity. The introduction of “Quoll Intercosmic” provides users the ability and opportunity to seamlessly move assets from various chains to Quoll and the BNB ecosystem itself, allowing users to be onboarded to Quoll Finance with relative ease with minimal barriers to entry, whilst also ensuring that the bootstrapping of users to Quoll Finance is done at minimal user acquisition costs. Moreover, “Quoll Intercosmic” allows increased access to liquidity, as it provides users the opportunity for cross-chain farming opportunities. Coupled with the liquidity mining rewards introduced, Quoll Finance ensures that any DeFi user, whether they have access to $WOM or not, is able to tap into Quoll Finance for the opportunity to earn ample rewards.

In addition, Quoll Finance has also committed to continue pushing out initiatives and improvements as it continues to grow after inception, by implementing and integrating other protocols who aim to adopt the veToken model in the future. With the success of this model seen through Convex and Curve, it is clear that the veToken model will play a crucial role in any DeFi ecosystem. We already see many protocols coming along to build their own veToken mechanisms. We affirm our confidence that Quoll Finance will be one of the frontrunners and leaders within the veAggregator space, as it continues to acquire users, projects and further liquidity.

Underserved market for veAggregators on BSC:

The veAggregator king on Ethereum is undoubtedly Convex. However, there is still no clear winner yet on BSC. The lack of such a product presents a great opportunity for Quoll to capture the incredibly large TVL that BSC has to offer, as well as the potential to revive the slowly stagnating DeFi ecosystem on BSC. In a similar fashion to what Convex did for Curve on Ethereum, Quoll aims to facilitate greater returns for LPs and Wombat stakers through boosted rewards as well as enable greater flows of liquidity as a result of providing a liquid option for veWOM, reminiscent of the Convex Flywheel we saw so much of during the DeFi 2.0 season.

There will be a huge amount of liquidity that can be tapped into when serving a market that has a TVL of roughly 5.43bn at the time of writing. Data from the past few months have also shown the growing market share and use of BUSD which most recently hit 15.48% of the entire stablecoin market. We expect this trend to continue, together with the growth of other stablecoins. Quoll’s intent to support services outside of Wombat means that they will likely be able to provide and capture value from new and current stableswaps that are looking to penetrate this growing market.

veAggregators are also a core piece of any strong DeFi ecosystem. With Quoll’s upcoming product lineup of ‘ve’ products such as bribes, we believe that they will not only have a high chance of capturing the currently underserved market for veAggregrators on BSC, but will also help BSC to revive and grow during the wider DeFi bear market. The symbiotic relationship between Wombat and Quoll should allow Wombat to capture a larger amount of TVL on BSC that mimics Curve, which accounts for 10% of Ethereum’s TVL. In comparison, Ellipsis, the current largest stableswap on BSC, is only 1% of the chain’s TVL.

Competitive Landscape

Future Roadmap

Aside from implementing other partnerships and protocols that adopt the veToken model in the future, Quoll will also aim to become an on-chain incubator and investment DAO. The Investment DAO will be initialized with Quoll advisors and early contributors. The investment DAO is responsible for proposing the investment plan, judging plans from credit sources such as Quoll community and executing the plan, with the treasury being mainly used for funding early-stage protocols. In addition, Quoll Finance will implement a bribery platform in order to add and provide more utility to $WOM and $QUO token holders.

Team

Quoll Finance’s founders have a plethora of experience within both the web2 and web3 space, with previous experiences within global companies and businesses such as Microsoft, Facebook, World Bank, as well as contributing and leading development of other DeFi protocols in the past. Quoll Finance’s core team consists of 10 full time experienced members, with 6 of them being full-stack engineers and 4 being community and marketing focused. This equips Quoll Finance to have the necessary skill, knowledge and experience to ensure that the future of Quoll Finance and its offerings to its users are built out successfully.

Quoll Token Metrics

Total supply: 1,000,000,000 QUO

Tokens Allocated to Impossible Launchpad: 500,000 USD (split into multiple pools)

- IDIA Standard pool: US$25,000 (5%)

- vIDIA Standard pool: US$245,000 (49%)

- vIDIA Unlimited pool: US$180,000 (36%)

- Whitelist allocation: US$50,000 (10%)

Public Sale Tokens Released on Day 1: 10%

Public Sale Token Price: 1 QUO = 0.01 BUSD

Tokenomics

50% for Liquidity Mining

500,000,000 QUO will be distributed to the liquidity providers and qWOM stakers who are the most important participants of the stableswap ecosystem. However, QUO will be minted every time we receive WOM reward. The amount of QUO minted is determined pro-rata for how much WOM was received, with the conversion rate decreasing as QUO supply increases in the form of cliff drop offs. QUO / WOM mint ratio reduces every 1 M QUO. The detail formula is:

cliffSzie = 1 M

cliffCount = 1 B/1M = 1000

currentCliff = QUOcurrentSupply / cliffSize

QUOminted = factor*WOMminted *(cliffCount-currentCliff) / cliffCount

1.5% for ContributionDrop

15,000,000 QUO will be distributed to a selected number of addresses who have made contributions to the Wombat or Quoll community. Details can be found at: https://medium.com/@quoll.finance/contributiondrop-9dfc51f77ca2

11% for Bonus Pool

110,000,000 QUO will be distributed to a Multi-Sig which will be controlled by the contributors, community members, and advisors. It will be used for

• Campaigns, such as the launch party and future campaigns;
• Extra liquidity mining rewards on Quoll;
• Liquidity mining incentives for QUO, qWOM related pairs on DEXes or others.

9.5% for Treasury

95,000,000 QUO will be set aside in a Treasury reserve to fund the community building, strategic partnership, and any future investments. 10% will be unlocked at TGE and the rest will have a linear vest of 12 months. For strategic partners, it will be a 12 month cliff, 24 months linear vest.

15% for Team

150,000,000 QUO will be reserved to current and future team members that build Quoll continuously. It will be a 6 months cliff, 18 months linear vest

5% for Investors

50,000,000 QUO are reserved for the investors. It will be a 6 months cliff, and a 18 months linear vest

3% for Advisors

30,000,000 QUO are reserved for the advisors who lent their expertise to Quoll’s success. It will be a 6 months cliff, 18 months linear vest

5% for IDO

50,000,000 QUO for the IDO on Impossible Finance. It will have a 10% initial unlock, 1 month cliff and a linear vest for 9 months

Risk Evaluation

Quoll’s main risk as a Convex style protocol would be smart contract risk, and even more than other DeFi protocols due to the nature of the product. Having to interact with various other protocols and their respective tokens leads to several layers of risks when looking at it on a smart contract level.

With the current support of Wombat being the first of many, as similar services begin to enter the market, it will invariably lead to a greater implied risk when dealing with a larger number of tokens. As such, the team has ensured that rigorous audits by Peckshield and Zokyo have been carried out in order to mitigate the risks associated but have also ensured that relevant checks and balances are in place to ensure safety doesn’t stop at the audit level.

Furthermore, with Quoll Finance being multichain, the risk of exploits on various ends are higher simply due to the nature of bridges, which have seen a whole host of exploits in recent times (i.e. Harmony, Ronin).

However, Quoll Finance is able to mitigate these risks through a number of solutions. Quoll Finance has dedicated itself in ensuring a safe user experience, through dedicated research on various bridge solutions, back-up bridge services, as well as avoiding “lock and mint” bridge services, which is the most common cause of bridge exploits.

About Quoll Finance

Quoll Finance is a veToken aggregator aiming to boost the DeFi ecosystem on BNB Chain. It will leverage intercosmic cross-chain infrastructure to attract liquidity and users from other blockchains. Quoll Finance will start with integrating Wombat Exchange and extend to multiple protocols.

Website | Whitepaper | Medium | Twitter | Telegram | Discord

About Impossible Finance

Impossible Finance is a multi-chain incubator, launchpad, and swap platform led by Ex-Binance & DeFi veterans. It offers a robust product-first ecosystem that supports top-tier blockchain projects to targeted user audiences. With extensive support from key leaders in the crypto industry, Impossible Finance simplifies DeFi for users to enjoy fairer investing, cheaper trading and better yields.

Website | Whitepaper | Medium | Twitter | Telegram

Impossible Tokens

IDIA token is the core governance and access token for allocation into our launchpad IDO sales.

IF token is the core governance and fee accrual for the swap and other non-launchpad products within the Impossible family.

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• Notes: DISCLAIMERS, TERMS, and RISKS
• Risk Warning: Trading and/or generally investing in any cryptocurrency involve significant risks and can result in the complete loss of your capital. You should not invest more than you can afford to lose and you should ensure that you fully understand the risks involved. Before investing, please consider your level of experience, objectives, and risk tolerance, and seek independent financial and legal advice if necessary. It is your responsibility to ascertain whether you are permitted to use the services of Impossible Finance based on the legal and regulatory requirements of your country of residence and/or applicable jurisdiction(s)