Dear #DeCats community,

today we would like to give you an update about our planned expansion with an second DEX (QuickSwap on Polygon PoS) and prepare for an important poll.

We are in good conversations with QuickSwap and GAMMA for our second official DEX listing and have reached necessary agreements with both parties.

The whole process will still take some time, as the community requested the most advanced combination of DeFi technology which is availabile at the moment (QuickSwap V3 pool + GAMMA).

Now the time has come to decide finally and within the next days about the final configuration of our pool at QuickSwap.

But first some detailed informations about the planned pool structure and liquidity:

1. The base underlying pool is a V3 concentrated liquidity pool on QuickSwap. It will be filled with 10k initial liquidity which is on full range (zero to infinity). This is the base underlying pool, where the GAMMA technology -in case there is an rebalance- will sell or buy $DECATS to rebalance accordingly to price range and actual price.

2. Additionally to the base underlying V3 pool there will be an additional initial liquidity of 50k as “GAMMA managed” position on wide range which we can guarantee mainly from the remaining unlocked team liquidity.

3. after initial deployment all community members are invited to provide their liquidity and earn APR on it in one of the two possible variants, which are possible with the QuickSwap/GAMMA technology.

LP providers will have two choices how they want to provide their liquidity on QuickSwap:

1. in the underlying V3 concentrated liquidity pool, where the liquidity provider can deploy in any desired price range (e.g. 15$ to 1.000$ or in crypto-crpyto e.g. 15 to 1000 $WMATIC)

2. GAMMA (wide) – here the range is defined and rebased if necessary by GAMMA technology, but gives you the advantage of auto compounding (higher APY)

Now, after all these basic informations comes something which is really important and where the team needs to know the opinion and wishes of the potential liquidity providers: the type of our pool.

We are talking about the following question: $DECATS-STABLE or $DECATS-CRYPTO pool?

As you might know already, the team advocates for an $DECATS-CRYPTO pool for following reasons:

1. We have a stable pool already on VirtuSwap

2. a $DECATS-CRYPTO pool gives more price volatility and therefore more trading volume which is good for APR for the liquidity providers and even trading volume is a good indicator for CEX to see if a listing on a CEX makes sense

3. An $DECATS-CRYPTO pool gives us furthermore the chance to participate also naturally on the expected coming crypto bullrun

But - as mentioned also already from some experienced DeFi community members: in a $DECATS-CRYPTO pool there are higher risks related to price fluctuations as market is more volatile than $DECATS actually behaves and might lead for GAMMA providers also in probably more frequent rebases, as the expected volatility might be higher.

The risk mainly comes from the question, if $DECATS will follow general market movements or not. This is something, which at our early stage can not seriously be predicted. But the team in general is optimistic to outperform on the long run, as there are #DeCats projects in pipeline to build an real ecosystem around #DeCats and $DECATS coin.

Anyway, as an additional information an original comment from QuickSwap on this topic:

“Even at 50% above and 50% below the current price (a really wide range) is ~4x more efficient than a V2 pool. And unlikely to rebase often.”

For the DeFi experts even QuickSwap gave us an link to simulate positions. If you are interested to dive deep, here is the link:

So, finally, we would like to ask the potential liquidity providers inside of our community which type of pool they would be willing to deploy liquidity:

1. $DECATS-$WETH

2. $DECATS-$WMATIC

3. $DECATS-$USDT

4. $DECATS-$USDC

We will start tomorrow respectively polls in the TG group, on DeBank and X.

We will not start polls today for the reason to give all community members a bit time to recap, discuss and build an own opinion without any pressure.

Sincerely,

Chairman Meow and the #DeCats team