Qilin V2 Project Update — June 2022 Edition

In this post we want to release a consolidated series of updates that are relevant to all the key aspects of Qilin Protocol’s growth plans — governance, token & incentives, marketplace scaling, & L2 deployment.

Marketplace Scaling

Over the past two weeks we have begun proactively scale Qilin’s permissionless marketplace by launching liquidity pools for perpetuals trading pairs. The goal is to scale Qilin’s perpetuals marketplace to at least 150 coin-margined trading pairs — this would then make Qilin the largest coin-margined perpetuals marketplace in crypto.

Currently, Qilin’s marketplace supports 8 perpetuals pair in total, 5 coin-margined and 3 USDC-margined.

Governance

Before Qilin’s token generation event, we will conduct all governance voting with Qilin’s Supernova NFTs. These NFTs have been distributed to Qilin V1, V2 community contributors.

Governance areas

We plan to have several key aspects of Qilin Protocol to be governable:

• L2 deployment: community will decide which L2 to deploy next!
• Marketplace trading pair launches: community will decide which asset to open perpetuals trading pair next!

Qilin NFT holders will be able to participate in the proposal voting of these areas of Qilin Protocol.

Token & Incentives

$QI token?

While Supernova NFTs are used as governance token right now, upon TGE of $QI, NFT holders will receive retroactive rewards and the ERC-20 will be used for the governance of Qilin Protocol.

Liquidity Incentive

The main utility of $QI will be the liquidity token that is used to incentivize liquidity on Qilin’s perpetuals marketplace. For now as to the exact workings of this liquidity incentive scheme, we are primarily centering around the following designs:

• A non-liquidity-mining liquidity design: liquidity mining is unsustainable and bad for protocol stakeholders so it won’t be what we mean by liquidity incentive;
• Incentivizing multiple altcoin liquidity markets: $QI will be designed to support liquidity in many altcoin margined perpetuals pairs. For USDC-margined pairs, supporting the one liquidity market is enough. For coin-margined pair scaling, $QI will be the token to support liquidity in those markets as well.

L2 Deployment

Our L2 deployment proposal is coming our next. Community members have expressed — and rightly so! — about the need for perps trading on L2. This will be the most immediate activity coming up. And again it will be done with Supernova NFTs.