Introducing QuantumX Finance

5 min readSep 29, 2021

Leveraged Yield Farming Protocol on Avalanche Network

QuantumX Finance is the first lending protocol allowing leveraged yield farming on Avalanche C-Chain. It helps lenders to earn safe and stable yields, and offers borrowers undercollateralized loans for leveraged yield farming positions, vastly multiplying their farming principals and resulting profits.‌‌

The main mission for QuantumX Finance is to put users’ funds into more productive use. By creating different portfolio strategies using our leveraged farming feature, users are able to hedge against a variety of risks, multiplying their profits with risk management tools offered by QuantumX Finance.

💻 Our Protocol:

As a user, you can participate in QuantumX Finance in three different ways:‌

💵 Lender: QuantumX Finance allows you to earn income on your base assets by depositing them into our vaults. These assets will then be offered to yield farmers for leveraging up their positions.‌

👨🌾 Yield farmer: As a farmer, you can earn a higher yield by opening a leveraged position on QuantumX Finance. Of course, this comes with bigger risks: liquidation, impermanent loss, etc.‌

🚨 Liquidator: Monitoring the pool for underwater positions and liquidating them when they become too risky.

In this example below, we show how each participant works together in our ecosystem:‌

Alice the lender deposits her AVAX into our deposit vault; her asset becomes available for a yield farmer to borrow; she earns interest for providing this liquidity.
Bob the yield farmer wants to open a leveraged yield farming position on the AVAX/BTC pair; he borrows AVAX from the vault and enjoys higher yield farming rewards. QuantumX Finance’s smart contract takes care of all the mechanics behind the scenes — optimally switching assets to the right ratio, providing liquidity to the pool, and staking LP for Trader Joe Rewards
Erin the liquidator bot monitors the health of each leveraged position, and when it goes beyond designated parameters, she helps liquidate the position, making sure lenders such as Alice do not lose their capital. For this service, she takes a 5% reward from the liquidated position. At QuantumX, we also have a bot for this which uses 80% of this fee for a buyback and burn of the QTX token. So even if you’re unfortunate and have your position liquidated, if you’re an QTX holder, you can feel relieved knowing your token is going up in value as a result.
Carlos the bounty hunter monitors the amount of rewards accrued in each pool and helps reinvest it back, compounding returns for all farmers. For this service, he takes 3% of the reward pool, which goes to the dev fund to pay for operations. (Farming Pool Performance Fee)

🚀Tokenomics & Token distributions:

QuantumX Finance is a fair launch project with no presale, no investor, and no pre-mine.

🌱Launch sequence

We will launch our service in sequences to ensure the smoothest experience for all users.

Phase 1: Lending pools and Trader Joe QTX-AVAX liquidity pool

Users can start depositing their assets into our pools.
We will seed liquidity into Trader Joe QTX-AVAX so people can start acquiring QTX right away.
This phase is designed to make sure we have a healthy amount of assets for borrowing and liquidity for QTX trading for the next phase.
Link to buy QTX will be posted soon.

Phase 2: Leveraged Yield Farming

When we think there is sufficient liquidity and audits have completed, we will open leveraged yield farming, thus completing our service loop.
We will make a separate announcement in advance to the community before launching Phase 2

During Phase 1 Launch:‌

10% distributed to liquidity providers for the QTX-AVAX pool on Trader Joe.
90% distributed to lenders who deposit assets into our vaults — rewards will be divided equally between the pools

During Phase 2 Launch:‌

38% distributed to liquidity providers for the QTX-AVAX pool on Trader Joe
26% distributed to lenders who deposit assets into our lending pools— rewards will be divided equally between the pools
38% distributed to users who have leveraged yield-farming positions opened — rewards will be calculated based on the loan amount; only leverage positions (i.e., > 1x) will receive QTX rewards

❓ What is the QTX token used for?

Governance

We will soon launch a governance vault that will allow community members to stake their QTX tokens; stakers will receive veQTX where 1 veQTX = 1 vote, allowing them to decide on key governance decisions.‌

Capture Economic Benefits of the Platform

We will let the community decide how they want the economic incentives to be captured by the QTX token; For example, it could be similar to Sushiswap where x% of fees generated go to perform token buyback and burn. In fact, upon launch of leveraged yield farming, there will already be several mechanisms in place making QTX deflationary in nature.‌

Accrue Value Through Deflation‌

Deflationary mechanisms for QTX:‌

Every time a liquidator liquidates a leveraged position, he receives 5% of the position’s value as a fee. 80% of those fees will go towards buybacks and burns of the QTX token. (1% as liquidation rewards for liquidators)
When a borrower takes out a loan of tokens in order to engage in leveraged farming, they pay a fee to the lender in interest. 10% of that interest will go towards the protocol fee, of which half (5%) will be used on buybacks and burns of the QTX token.‌

Protocol Utility

QTX tokens will be a fundamental part of future initiatives providing protocol utility. In particular, we’re planning an NFT integration that will require QTX tokens to participate, and will offer benefits relating to various aspects of leveraged yield farming such as higher available leverage level, higher lending rates for lenders, lower lending rates for borrowers, and more.

Unleash your earning potential with QuantumX Finance!