Introduction

qPools is a risk-adjusted yield protocol built on Solana. Our goal is to connect the fragmented liquidity of DeFi and make passive income accessible to everyone.

Problem

Most people would like to have a passive source of income. Risk-averse actors find crypto markets too volatile, sometimes due to a lack of knowledge on low-risk opportunities. Crypto experts, who are already generating passive income find it difficult to track every new product, therefore missing opportunities. Finally, people not familiar with crypto don't know where to start.

The growing number of products in the DeFi space has caused liquidity to be fragmented over many AMMs, rather than concentrating liquidity around established and efficient products such as the Serum order-book.

With qPools we aim to address these issues. qPools aims at bringing new crypto investors into the Crypto space, educating risk-averse players, and providing liquidity to the entire crypto ecosystem.

Our Solution

With qPools, you can provide liquidity to a number of DEXes, each generating passive yields through trading fees.

In the current implementation, a user can pay USDT into a reserve and receive QPT tokens. The reserve is distributed to a number of liquidity pools. The allocation to the pools is determined by a risk-adjusted, efficient-frontier algorithm that maximizes for yields while accounting for variables such as volatility and volume.

As the value of the underlying tokens increases, so does the value of QPT. The user generates yields passively and conveniently.

Our Product

Our product consists of a web-app, the protocol program built on rust, the oracle program, and some cranks:

The web-app is designed to be minimalistic and accessible to everyone, even without previous knowledge of cryptocurrencies. It is a one-pager built in React, and is mobile-friendly.

The protocol program (1) stores the reserve in a decentralized manner, and also manages the (2) swapping and (3) deposits into the liquidity pools of the underlying exchanges. The liquidity-providing logic is implemented through cranks. The program is implemented in Solana / Anchor.
We focus on a list of liquidity pools in decentralized exchanges. We currently integrate with Saber, are ready to integrate with Invariant as they launch on mainnet in the next couple weeks, and are experimenting with the Serum Orderbook. We make use of pyth for price calculations to calculate the price of the QPT token w.r.t. the reserve. You can find the solana program here , and a link to our github here.

An off-chain oracle program calculates the portfolio allocation, accounting for APY and price volatility. This currently tracks data from the Atrix liquidity pools. You can find the API endpoint here.

For more details you can check out our whitepaper (https://www.qpools.finance/whitepaper.pdf)

Community

A community is an integral part of any project. We started nurturing a community since the beginning of the Wormhole hackathon, and have organically grown our Twitter and Discord to over 100 users. Make sure to follow us and join our discord to get the elite-autist tag now! We are still looking for any pointers and feedback that we can get, so please get in touch over twitter or telegram

What's next for qPools

We are building an easy to use protocol that provides liquidity to a wide range of platforms across the Solana ecosystem, for example the Serum order-book and Saber AMMs. With such products we also aim to bring in people that are risk averse into the crypto market and help existing players choose the best liquidity pools to earn passive income while mitigating the impact of volatility against stable coins.

We are looking for grants to integrate to new platforms, and adapt our product according to our growing community, make it robust and release it on mainnet. We will be also testing the appetite of institutional actors in crypto-friendly Switzerland, and are thinking about NFTs as a means to bootstrap liquidity and finance development efforts. Reach out if there is another exchange we can provide liquidity for, if you want to bounce off ideas, or find ways to collaborate through which we can make this MVP mainnet-ready faster!

Acknowledgments

Special shoutout to cqfd (alan), paulx, man0s, paulx, MilksDudsPro Professional x64, Norbert, AlexSolana1, code_mokey for helping us debug the codes, Armani Ferrante whose source code helped us get a jump start into Solana, and the whole Wormhole community that we have met in the last weeks including Michelle, Rahul, jhl, kaiba and the guys from Marinade Finance.

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