TL;DR
In just the first 30 days of the loan model, more than 40 pools launched with over $8M in liquidity on Quantum DeX. Momentum is accelerating, and projects are joining rapidly. In a few weeks, the new application fee model (1% upfront or 3% spread with auto-debit) will go live. Projects that apply before then can still launch under the current structure with 0% application fee.
Launching a token is one of the most challenging tasks in Web3. The biggest hurdle is liquidity. Without deep liquidity pools, projects suffer from high price impact, excessive slippage, increased rug pull risks, and a rapid erosion of user trust. Data shows that projects launching with less than $25,000 in liquidity have an average survival rate of just 6 months, whereas those starting with $100,000 or more enjoy over a 90% survival rate for the same period.
To address this critical problem, Quantum DeX introduced the Automated Liquidity Loan Protocol. Now, the protocol is evolving from Version 1 to Version 2. Let’s explore how this next iteration transforms token launches and why it’s a game changer for both projects and the broader ecosystem.
Observations with V1
In less than 30 days since the loan model was launched, over 40 pools have gone live with more than $8 million in liquidity provided. While the adoption has been strong, several important observations emerged:
- 10-month lag for defaults → Projects could remain inactive for nearly a year before being flagged as defaulted, delaying corrective action.
- Over-borrowing → Some projects borrowed more liquidity than they actually needed, increasing their repayment burden unnecessarily.
- Lump-sum repayments → Repayments had to be made manually at the end of each month in large lump sums, adding significant stress to project teams.
The New V2 Loan Model
V2 addresses the limitations of V1 with automation, stronger risk tracking, and fairer participation:
1. Application Fee
- 1% upfront (in WL1X) — paid immediately, OR
- 3% spread over 6 months (auto-debited) — deducted daily from collateral through smart contracts.
This structure ensures projects only borrow what they actually need, based on expected pool activity.
2. Automated Repayments
- After the 6-month cool-off period, repayments are streamed daily from collateral.
- Example: A $100,000 loan → repayment of ~$138.89 per day over 24 months.
- Collateral is auto-swapped into WL1X from the free market pool. If liquidity is insufficient, manual repayments are required.
3. Risk Metric Compliance
- A new Fee Compliance % is introduced:Fee Compliance % = (Total Fees or Loan Paid ÷ Total Due) × 100
- This metric is directly tied to the project’s risk indicator:
- Blue: Cooling-off (no repayments yet)
- Green: Healthy — all fees on track with >90% fee compliance
- Yellow: Between 50–90% repayment compliance; projects may remain in this zone for 30 days before being required to return to the green zone
- Red: Below 50% repayment compliance; projects may remain in this zone for only 10 days before moving back to the yellow zone
Example Calculations
V1 Loan Example
- Loan: $100,000 WL1X
- Collateral: $200,000 project tokens
- Cool-off period: 6 months
- Loan Repayment: Begins in month 7, manual and lump-sum
- Default recognition: 10 months (6 months cool-off + 4 months until the project exceeds its red-zone eligibility)
V2 Loan Example
- Loan: $100,000 WL1X
- Collateral: $200,000 project tokens
- Application Fee: 1% upfront = $1,000 WL1X OR 3% spread across the first 6 months = $3,000 ($16.67/day)
- Loan Repayment: Begins in month 7, auto-debited daily at $138.89
- Default recognition: Measured in days, based on repayment compliance tracked by the risk indicator
Why V2
For Projects
- Predictable daily repayments — easier for treasury planning.
- Lower entry barrier with flexible application fees.
- Transparency with visible compliance tracking.
For Users
- Stronger anti-rug protection with base liquidity locked.
- Fairer trading experience with automated liquidity management.
For the Ecosystem
- Continuous revenue to support growth and operations.
- Faster default detection → unhealthy pools are flagged sooner.
- Healthier liquidity environment → sustainable long-term adoption.
Final Note to Projects
The application fee model (1% upfront or 3% spread over 6 months) will be rolled out in the coming weeks. Projects currently in the pipeline have a limited window to apply under the old fee-free structure with 0% application fee. The old pools will be unaffected and will have the ability to set auto debit feature once the cooling off period expires.
With V2, Quantum DeX makes liquidity loan launches more sustainable, transparent, and fair ensuring that survival isn’t luck, but built into the system.
