The Quicksilver Zone: A Net Positive
The security of native chains onboarded on Quicksilver, DeFi, and governance: Three verticals that can, at times, be at odds with each other. Currently on Cosmos, if a staker wants to participate in DeFi, he or she would most likely have to unbond his or her stake. Then this user would either redelegate these assets to a liquid staking protocol, or go directly into his or her DeFi protocol of choice without participating in staking. If this staker opts for liquid staking as it is today, he or she would forgo their governance rights entirely. Quicksilver aims to eliminate these barriers to entry.
As a Liquid Staking protocol, stakers will be able to use Quicksilver to participate in DeFi protocols while continuing to secure native chains. Furthermore, Quicksilver users will be able to do so without having to unstake their assets.
By incorporating Iqlusion’s liquidity staking module, Quicksilver will allow users to transfer existing staked delegations directly into the protocol without unstaking them, forgoing the 14 day unbonding period. This means zones will benefit from continuous security as stakers transfer their delegations into liquid staking on Quicksilver.
Furthermore, by providing users validator choice, as opposed to restricting users to a preselected few validators, the protocol will avoid unevenly enabling a few actors. This aims to encourage decentralization, which, in turn, could help increase network security and censorship resistance.
As a liquid staking solution, Quicksilver is, by definition, a gateway to DeFi. However, because Quicksilver users will not have to choose between participating in DeFi and participating in governance, the Quicksilver team hopes the protocol will help catalyze a DeFi boom in the Cosmos. Furthermore, because Quicksilver will be its own zone, developers and Cosmonauts will be able to build DeFi applications on top of it, taking advantage of the assets in the protocol. Quicksilver plans to integrate CosmWasm as well, enabling a whole range of protocols to be developed on Quicksilver without bootstrapping liquidity. 20% of Quicksilver’s Genesis supply will be allocated to building projects such as DeFi protocols on top of the Quicksilver chain, using qAssets as base collateral.
Quicksilver aims to do more than just boost DeFi. The protocol will allow users to keep their voting rights through its governance by proxy feature. Governance by proxy will enable the protocol to mirror the proposals of native chains onboarded on the protocol and allow users to vote. The protocol will then mirror users’ intent on behalf of the delegations, allowing users to participate in governance.
By allowing security, DeFi, and governance to synergistically exist and help catalyze each other, Quicksilver aims to create a net positive effect throughout the Cosmos.