Welcome to Quadrat² Protocol

The most capital-efficient protocol in the multi-chain DeFi world

Quadrat is a permissionless, decentralized, and highly capital-efficient active liquidity management protocol. Quadrat has been built on top of Uniswap v3 protocol to capture the maximum possible rewards from the smart liquidity provision in the Pools. The protocol is driven by the first DeFI NFT community and $POOL Token Governance. The protocol is powered by 0xPlasma Labs (decentralized DeFi Dev Team).

Quadrat Protocol and its growing TVL have a very important and positive impact on Uniswap v3 protocol and on the whole multi-chain DeFi ecosystem:

Growing Quadrat TVL → More Capital Efficient Uniswap v3 Pools → More trading volume comes to Uniswap v3 → More Fees Quadrat Depositors Earn → Growing Quadrat TVL

Uniswap v3 LP issues

Uniswap is the largest decentralized exchange (DEX) and one of the cornerstones of Decentralized Finance (DeFi). Uniswap uses liquidity pools to provide Automated Market Making (AMM) functionality for exchanging cryptocurrencies on the EVM blockchains (Ethereum, Polygon, Arbitrum, Optimism).

Uniswap v3 provides increased capital efficiency and fine-tuned control to liquidity providers, improves the accuracy and convenience of the price oracle, and has a more flexible fee structure. Uniswap v3 introduces a number of new features, notably the concentrated liquidity feature, which allows liquidity providers to concentrate their liquidity in a specific price range, leading to increased capital efficiency.

Because of the complexity of Uniswap v3, 95% of liquidity providers don't generate any rewards on their capital, and the rest 5% of liquidity providers are receiving impermanent losses on their positions without any Web3 tools to properly hedge this and rebalance liquidity. This situation completely eliminates the advantages of the Uniswap v3 protocol and creates a huge barrier to its TVL growth.

1) Ineffective liquidity distribution in the Pool dramatically decreases the capital efficiency of the Uniswap v3 protocol. That's also the major reason why Uniswap v2 still has $1B TVL.

2) Disbalanced Liquidity Pools make an asset swap in Uniswap v3 highly ineffective with a big price impact and a high potential for MEV attack, in some cases that make asset swap even impossible and the trading volume goes to other DEXes. This happened because users can't monitor their position 24/7, and rebalancing of the liquidity can cost a lot of Gas Fees and complex calculations. The Common problem in 40% of Uniswap v3 Pools.

3) Impermanent losses are potential losses that funds are exposed to when they are in a liquidity pool. It occurs when the mathematical formula adjusts the asset ratio in a pool to ensure they remain at 50:50 in terms of value. The pool can become uneven by large trades that drain one asset from one side of the pool, forcing a significant rebalance of the pool. The quantity of the tokens deposited into the pool changes based on the trading activity. Upon withdrawal, the user is issued the tokens equivalent to their ownership “share” of the pool. The loss is not realized until the user withdraws their funds from the liquidity pool. Uniswap v3 makes impermanent losses more dangerous for positions because of the concentrated liquidity and without the proper rebalancing tools you can't protect yourself from IL

3) Another big disadvantage of Uniswap v3 protocol is its NFT-based liquidity positions. Each time someone provides liquidity into the Uniswap v3 pools, the protocol mints new NFT (+gas fees) representing this position. Uniswap LP NFT standard ERC-721 does not allow it to use in other protocols (liquidity farming, liquidity lock, leverage, lending, DAO, etc.), which is blocking the huge external opportunities of Uniswap v3.

So let's fix it all with only one Protocol - Quadrat

Quadrat Solution

Quadrat is a permissionless, non-custodial, active liquidity management protocol of concentrated liquidity in Uniswap v3 pools. UI of Quadrat's protocol is integrated and hosted on Plasma.Finance Web3 platform. This protocol is available only for 10.000 Quadrat NFT Pass holders (the first NFT with a real Utility > providing access to yield farming and the highest APY on the DeFi market). Quadrat protocol can be also used by Investment DAOs, Web3 Treasuries, Gnosis Safe Vaults and integrated as DeFi Lego in leverage and lending protocols.

Quadrat Permissionless Factory Contract (HyperLoop) allows Asset Managers to create Uniswap v3 non-custodial Vaults or Strategies on any blockchain where Uniswap v3 Deployed (Ethereum, Optimism, Polygon, Arbitrum).

Users (Liquidity Providers) can deposit funds into the Quadrat Vaults and passively earn the hights fees from Uniswap v3 on DeFi Market. Asset Managers can implement their Strategies to actively manage Strategy liquidity in Uniswap v3 Pools. Asset Managers don't have access to users' funds, they can only rebalance Uniswap v3 Pool Price Ranges of the Strategy.

Quadrat also provides highly effective 0xPlasma Strategies for Uniswap v3, developed by in-house analytics and data scientists. 0xPlasma Strategies implement different models of asset management, based on market volatility, trading indicators, and other financial models of price range prediction. Quadrat Strategies target the maximization of users' rewards from liquidity provision, hedging the possible risks and impermanent losses.

Quadrat Protocol Advantages:

Quadrat Protocol converts non-fungible liquidity positions of Uniswap v3 into LP tokens of ERC-20 standard. It's enabling liquidity to be used in any external DeFi protocols (staking, lending, farming, DAO, etc.)
Protocol Strategies automatically reinvests earned fees back into Uniswap v3 Pool Strategy to achieve a compounding effect for deployed capital
Asset Managers can implement a wide range of strategies to manage concentrated liquidity in Uniswap v3, maximizing the APY of the Strategy.

Quadrat Vision

Quadrat Protocol has the ability to acquire 20% of Uniswap v3 Liquidity (1B USD TVL) and capture with this liquidity 90% of all Uniswap v3 fees (1B USD of Rewards annually), with an average APY of 100%. It will make the Quadrat Protocol the most capital-efficient and profitable DeFi protocol on the market.

Access to Protocol

Quadrat Protocol and UI access are limited to 10.000 seats, and available only for Quadrat NFT Pass holders. Owners of Quadrat NFT Pass can participate in the protocol Governance, provide liquidity in the Strategies to earn rewards, and create new Strategies to manage personal or public capital with a revenue-sharing model.

Protocol Structure

Protocol Users

There are three types of actors using permissionless vaults:

Users (Liquidity Provider) provide liquidity into Strategy Vaults to earn profits from Uniswap v3 Fees.
Asset Managers manage price ranges of liquidity in Uniswap v3 and earn performance fees.
Protocol Governance control the protocol parameters and monitor Asset Managers

Strategy Vaults

Quadrat Strategy is a non-custodial Proxy Vault that provides liquidity into Uniswap v3 Pool and safely allows the Asset Manager to manage the Price Ranges of this liquidity.

Community Structure

There are 5 types of Quadrat NFT Pass with different rarity and utilities that give access to protocol and private Discord Groups:

Sublime Galaxy (100 NFTs) - private club of the largest VCs, DeFi and Hedge Funds. Access to the Private Discord Group and liquidity strategies. Governance L1.

Midnight Rainbow (100 NFTs) - Uniswap Team, DeFi protocols, DeFi Gods and Founders, Investment DAOs, DEX Market Makers. Private Discord Group. Governance L2.

Black Forest (200 NFTs) - 0xPlasma Network, Media, Advisors, Reserves. Private Discord Group. Governance L3.

Golden Ray (500 NFTs) - Top Uniswap v3 LPs across all chains.

Bronze State (9100 NFTs) - Public NFT (mint, pool). Public Group, access to public strategies.