# Introduction to Quill Finance

### `What is Quill Finance?`

**Quill** is a decentralized and over-collateralized stablecoin protocol operating on the zK-Rollup-based Scroll network governed by its native token **$QUILL**. It is forked from [Liquity V2](https://www.liquity.org/) and empowers users to mint **$USDQ** (a *stablecoin*) by collateralizing assets such as wstETH, weETH, ETH and SCR. This mechanism allows users to access liquidity while maintaining their exposure to their assets.

**`Why Quill and what are the benefits of using it?`**

Protocols such as **Quill** are essential for users seeking a decentralized and user-friendly platform for borrowing and lending. Here are some key reasons to consider using **Quill**:

* **Variable Interest Rates**: **Quill** offers stablecoin loans where borrowers can set their interest rates with higher rates decreasing the risk of redemption, creating a flexible, market-driven system that adjusts to changing conditions and borrowing strategies
* **Efficient Liquidity Access**: By collateralizing their crypto assets, users can access liquidity quickly and conveniently without the associated risks and complexities of conventional banking systems. This feature empowers users to utilize their assets more effectively, enhancing financial flexibility​.
* **Robust Security**: **Quill** ensures the security of user funds through advanced smart contract mechanisms. These protocols are designed to be resilient against vulnerabilities, offering peace of mind to users concerned about the safety of their investments​.
* **Directly Redeemable**: One of the key advantages of **Quill** is that its *stablecoin* can be directly redeemed for the underlying collateral at face value. This mechanism instills confidence in users as it ensures that they can always retrieve the full value of their stablecoin, thus enhancing the stability of the **Quill** ecosystem​.
* **Decentralization**: Being built on a decentralized framework, **Quill** eliminates intermediaries, allowing for direct interactions between users and the Scroll blockchain. This not only reduces costs but also enhances transparency and trust within the system​.
* **Governance**: In the future, **Quill** will operate on a decentralized governance model, allowing users to participate in decision-making processes related to the protocol. This democratic approach ensures that the community has a voice in shaping the future of the platform, promoting transparency and user engagement​

In summary, **Quill** stands out as a robust option for users looking to navigate the world of decentralized finance effectively.

**`Primary Use Cases for Quill`**

* **Borrow $USDQ Against ETH**: **Quill** allows users to borrow **$USDQ**, its *stablecoin*, by leveraging their ETH (and other assets) holdings as collateral. This enables users to access liquidity without selling their assets, providing a cost-effective way to obtain funds while maintaining exposure to potential price appreciation in Ethereum​.
* **Use $USDQ for Anything You Need**: Once borrowed, **$USDQ** can be used for various purposes, including trading, investing in other DeFi projects or simply covering everyday expenses. This flexibility allows users to utilize their stablecoin in ways that best suit their financial goals and needs.
* **Provide $USDQ to the stability pool and Earn rewards**: By depositing $USDQ in the provided stability pools, the user can gain rewards over time in the form of $USDQ and tokens from the chose stability pool.
* **Easy leverage exposure to collateral:** **Quill** allows users to amplify their position and potential returns efficiently, without needing complex manual processes or multiple transactions.

**`$QUILL and $USDQ, the tokens`**

[**$USDQ**](https://quill-finance.gitbook.io/faq/faq/usdusdq) is the USD-pegged stablecoin used within the **Quill** protocol, designed to facilitate loans secured by their collateral. Users can borrow **$USDQ** against Ether (and other assets) with a chosen interest rate. Importantly, **$USDQ** can be redeemed at any time for the underlying collateral at face value, ensuring that it retains its peg to the US dollar.

[**$QUILL**](https://quill-finance.gitbook.io/faq/faq/usdquill) is central to **Quill**’s governance and liquidity model, allowing users to participate in decision-making and earn rewards for contributing to the protocol.

Token holders inherently have a vested interest in the protocol’s success, by distributing governance power, **Quill** ensures that the long-term health of the ecosystem aligns with the interests across the community.

For any other information or questions about the project, please join us at our [Discord](https://discord.gg/quill).


# Quill & Liquity v2

**`What is Liquity v2?`**

**Liquity v2** is a decentralized borrowing protocol that allows users to take out loans against their collateral (ETH) in the form of a stablecoin called BOLD. The protocol operates with set interest payments and relies on a minimum collateralization ratio (MCR) of 110%, ensuring that users maintain a healthy buffer between the value of their collateral and the amount they borrow. **Liquity v2** aims to provide a censorship-resistant and user-friendly platform for borrowing while keeping the value of BOLD pegged to the US dollar through various mechanisms​.

**`What is the relation between Quill and Liquity?`**

**Quill** is a **fork of** the **Liquity v2** protocol, built to enhance the capabilities of decentralized finance (DeFi) while integrating specific features tailored for its ecosystem. This relationship allows **Quill** to leverage **Liquity**'s robust mechanisms for minting stablecoins and managing collateralized debt positions while introducing unique improvements and innovations.

1. **Core Mechanics**: Like **Liquity v2**, **Quill** utilizes a collateralized debt position model where users can deposit assets as collateral to mint the stablecoin **$USDQ**. The underlying principles governing Troves and liquidation processes are inherited from **Liquity v2**, ensuring that **Quill** maintains a strong foundation in proven DeFi mechanics.
2. **zk-Rollup Integration**: **Liquity** operates on Ethereum, while **Quill** is built on **Scroll**, a zk-Rollup Layer 2 solution. This enables **Quill** to rely on **Scroll’s** zero-knowledge technology to achieve faster transaction speeds and lower costs while maintaining the core design principles of **Liquity v2**.
3. **Collateral Types**: **Quill** extends the range of collateral options compared to **Liquity v2**, specifically incorporating **staked Ethereum derivatives** like **wstETH, weETH, wETH, and Scroll's** native token, **SCR**. This diversification aims to provide users with additional liquidity options and improved capital efficiency.
4. **Governance**: **Quill** will introduce its governance token, **$QUILL**, which empowers its holders to participate in protocol decisions, including adjustments to parameters, fee structures, and future developments. This governance mechanism is crucial for fostering community engagement and ensuring that user interests are prioritized.
5. **Security and Audits**: **Quill** benefits from **Liquity**’s established security framework while undergoing independent audits to validate its smart contracts. By combining the security principles from **Liquity** with additional measures, **Quill** aims to provide a safe environment for its users.

**Quill** builds upon the successful model established by **Liquity** integrating its model on another network, expanding its reach to DeFi users. This relationship helps **Quill** maintain a solid foundation in decentralized stablecoin solutions while adapting to the changing landscape of blockchain technology and user expectations.

[*Read more about the Friendly Fork Program*](https://docs.liquity.org/v2-documentation/friendly-fork-program)


# Scroll: what it is and why use it?

**`What is Scroll?`**

**Scroll** is a Layer 2 (L2) scaling solution for Ethereum that aims to enhance the blockchain’s throughput and efficiency while maintaining security and decentralization. It is built using zk-rollups (zero-knowledge rollups), a cryptographic technology that bundles multiple transactions together and processes them off-chain, while only submitting a single proof of validity to Ethereum. This reduces transaction costs and increases scalability without sacrificing security.

**`What are the main advantages of using Scroll?`**

* **Low Transaction Costs**: **Scroll** significantly reduces gas fees for users by processing transactions off-chain. This makes it more affordable to interact with decentralized applications (dApps), especially in periods of high network congestion.
* **Scalability**: By leveraging zk-rollups, **Scroll** can handle many more transactions per second compared to Ethereum’s base layer. This is particularly useful for dApps that require high throughput like DeFi protocols, gaming and NFTs.
* **Ethereum-Level Security**: Despite operating off-chain, **Scroll** inherits the security guarantees of Ethereum. zk-rollups ensure that any off-chain activity is valid, making it a safe option for users who value security.
* **Decentralization-Friendly**: **Scroll** prioritizes decentralization, aligning closely with Ethereum’s philosophy. Unlike some scaling solutions that rely heavily on centralized components, Scroll uses zk-proofs to maintain decentralization without compromising on performance.
* **Developer-Friendly**: **Scroll** is compatible with existing Ethereum tooling, meaning developers can easily port their dApps from Ethereum to **Scroll** without making major changes. This ease of integration makes **Scroll** an attractive platform for developers.
* **Eco-Friendly**: By reducing the load on Ethereum’s *mainnet,* **Scroll** helps lower the overall energy consumption of the network, making it a more environmentally friendly option compared to traditional Layer 1 solutions.

**`Why is Quill on Scroll?`**

**Quill** allows users to borrow a s*tablecoin* (**$USDQ)** against collaterals (such as wETH, weETH, wstETH and SCR) at a set interest, relying on multiple on-chain interactions (collateral deposits, redemptions, liquidations). Scroll's zk-rollups bundle many transactions into one, dramatically reducing gas fees compared to Ethereum Layer 1. This makes user interactions, especially for borrowing and liquidation operations, much more affordable.

* **Lower Transaction Costs**: zk-rollups reduce gas fees, making interactions with protocols like **Quill** more affordable, especially for actions like collateral deposits and redemptions.
* **Improved Scalability**: **Quill** benefits from high throughput due to Scroll’s zk-rollup scalability. Scroll handles more transactions per second, allowing these protocols to serve a growing number of users without network slowdowns. This is crucial for DeFi applications, where delays can lead to liquidation risks or missed arbitrage opportunities.
* **Ethereum-Level Security**: Scroll inherits the security of Ethereum through zk-proofs. **Quill** relies on robust security to prevent system exploits. By being on Scroll, **Quill** can operate with the same level of confidence as  on Ethereum while gaining scalability benefits.
* **Decentralization and Trustlessness**: **Quill** is designed to be fully decentralized, Scroll aligns well with this philosophy by being an Ethereum Layer 2 that prioritizes decentralization and minimizes the reliance on centralized operators. This allows **Quill** to maintain trustless operations, which is important for protocols aiming to remove human control from the system.
* **Enhanced User Experience**: With low costs and faster transactions, **Quill'**s users can enjoy a smoother experience. Liquidations, collateral adjustments and other critical DeFi interactions become seamless on Scroll, reducing friction for both borrowers and liquidators.

#### **`How do I bridge to Scroll?`**

Head to <https://scroll.io/bridge> and follow their very intuitive UI for an easy way to **bridge** assets from Ethereum to Scroll.

If you need any more information on how to bridge to Scroll, please follow this [official FAQ](https://scroll.io/bridge/faq).&#x20;


# $USDQ

#### **`What is $UDSQ?`**

**$USDQ** is a decentralized, algorithmic stablecoin that is soft-pegged to the U.S. dollar, designed to be both secure and scalable for use within the **Quill** ecosystem. It allows users to borrow against collateral, enabling them to access a stable, USD-pegged asset without relying on traditional financial systems or centralized intermediaries.

**`How is $USDQ different from other stablecoins?`**

Unlike many stablecoins that rely on centralized reserves or custodial assets, **$USDQ** is fully decentralized and algorithmically controlled. It's minted directly through user-deposited collateral in **Quill**’s protocol, leveraging zk-Rollup technology on the Scroll network to ensure low fees, high transaction speed and robust security. This approach minimizes centralization risks while offering a stable, DeFi-native currency.

**`What assets can be used to mint $USDQ?`**

Currently, users can mint **$USDQ** using select forms of collateral, specifically **wrapped Ethereum (wETH),** **wrapped staked Ethereum (wstETH),** **Ether-Fi staked Ethereum (weETH) and Scroll's native token (SCR)**. **Quill** may expand its collateral types in the future, allowing for greater flexibility and security in collateralization options.

**`What is the minting process for $USDQ?`**

To mint **$USDQ**, users deposit an eligible collateral asset into their Trove on the **Quill** platform. Based on the value of the collateral and the protocol’s collateralization requirements, users can mint **$USDQ** up to a certain limit. This minting process is automated through smart contracts, providing a decentralized and transparent way to create stablecoins without relying on external approvals.

**`How is $USDQ pegged to the USD?`**

**$USDQ** maintains its USD peg through a combination of collateralization mechanisms and incentives for redemptions. By requiring users to hold sufficient collateral in their Troves, **Quill** ensures that there’s always backing for **$USDQ** in circulation. In addition, users can redeem **$USDQ** directly for underlying collateral at the pegged value, helping to stabilize its price even during market fluctuations.

**`Are there any fees involved in minting or redeeming $USDQ?`**

Yes, the following fees apply to minting and redeeming **$USDQ**:

* **Interest Fee**: When users initially mint $USDQ by opening a Trove, your interest fee is applied, 7 days upfront.
* **Redemption Fee**: Users pay a small fee when redeeming **$USDQ** back to the underlying collateral. This fee is designed to discourage excessive redemptions, helping to maintain stability.

These fees contribute to **Quill**’s long-term stability and ensure that the system can cover its operational and liquidity needs.

**`Can I stake $USDQ?`**

Yes, you can stake $USDQ on the [Stability Pool](https://quill-finance.gitbook.io/faq/faq/price-stability-and-stability-pool) in order to receive a pro-rata share of the liquidated collateral and of the interest paid by the borrowers.


# $QUILL

**`What is $QUILL?`**

**$QUILL** is central to **Quill**’s governance and liquidity model, allowing users to participate in decision-making and earn rewards for contributing to the protocol.

DAO users inherently have a vested interest in the protocol’s success, since they are token holders. By distributing governance power, **Quill** ensures that the long-term health of the ecosystem aligns with the interests across the community.

**$QUILL** rewards will accrue to Stability Providers , the users who deposit **$USDQ** to the Stability Pool and liquidity providers of the USDQ:ETH pool.

**`How is $QUILL distributed?`**

To ensure fair allocation and long term alignment with community growth, **$QUILL** will be distributed as follows:

* Community & Growth (DAO) 40%
* Team 22%
* Advisors 3%
* Liquidity & Incentives 20%
* Investors 10%
* BOLD & Liquity AG 5%

Unlock Mechanism: Both team members and investors will be subject to a 3-month cliff, followed by an 18-month linear unlock, to align incentives with long-term growth and stability.

**`How can I use $QUILL?`**

**$QUILL** can be staked for voting power and bribes, influencing the future of the protocol.


# Borrowing

**`Why borrow instead of selling?`**

Selling your assets means closing your position on that particular asset. By borrowing you are able to obtain liquidity (working capital) without selling your assets. Users are mainly borrowing for unexpected expenses, leveraging their holdings or for new investment opportunities.

**`How do I borrow?`**

To borrow you must deposit a certain amount of collateral (ETH, wstETH, weETH and SCR are accepted) to be used as collateral. Then you can borrow **$USDQ** up to a certain collateral ratio (which varies per collateral).

**`What is a collateral?`**

**Collateral** is an asset that a borrower pledges to a lender as security for a loan. If the borrower fails to repay the loan, the lender has the right to seize the collateral to recover the debt. **Collatera**l can be physical, like real estate or vehicles, or financial, such as stocks, bonds or digital assets in the context of DeFi. Using collateral reduces the lender’s risk, enabling the borrower to access larger loans or better terms depending on the value and stability of the collateral provided.

**`What is a collateral ratio?`**

The **collateral ratio** is a measure that indicates the value of collateral relative to the value of the loan taken. It is calculated by dividing the total value of the collateral by the total value of the debt. This ratio is crucial in lending, particularly in DeFi, as it helps assess the risk of liquidation. A higher collateral ratio indicates a more secure position, while a lower ratio suggests a greater risk of liquidation if the value of the collateral declines.

**`How much can I borrow?`**

The collateral ratio can be as low as 110% for ETH and slightly higher for more volative assets.

**`How much will I pay in interest rates?`**

Interest rates can range from 6% to 350%, depending on the user's preferences. This flexibility allows borrowers to manage their debt costs based on market dynamics and liquidity needs.

Users set their interest rate when first opening a Trove, and can then adjust it periodically as they see fit. The interest rate will naturally accrue to the value of your debt, meaning you don't need to pay on a fixed schedule. Instead, users just need to ensure their debt doesn't grow past the point where they are in danger of liquidation.

This model promotes clarity and simplicity, empowering users to make informed decisions while actively participating in a stable and efficient financial ecosystem. For further insights into **Quill'**&#x73; fee structure and mechanics, you can explore [other parts](https://quill-finance.gitbook.io/faq/faq/fee-model) of this FAQ.&#x20;

**`What asset do I need to repay?`**

In the **Quill** protocol, you repay your loan using the same asset you borrowed. You borrow $**USDQ**, you will return $**USDQ.** Additionally, **Quill** allows you to utilize your collateral to facilitate repayment in a straightforward manner. If you prefer to settle the loan based on the USD value, you can easily convert your borrowed $**USDQ** back into ETH (or other collateral), ensuring flexibility in managing your repayments.

This structure promotes a user-friendly experience by allowing borrowers to make repayments in a manner that best suits their financial strategies and needs.

**`When do I need to pay it back?`**

Loans issued by the protocol do not have a repayment schedule. You can leave the loan open and repay your debt any time, as long as you maintain a collateral ratio of at least 110%.


# Troves and Collaterization

#### **`What is a Trove?`**

A **Trove** in **Quill** is a user-owned smart contract that holds deposited collateral and tracks the debt associated with minting **$USDQ** stablecoins. When users deposit their assets into a **Trove**, they can borrow against this collateral to mint **$USDQ.** **Troves** are central to maintaining collateralization and stability within the **Quill** ecosystem, securing each **$USDQ** with sufficient backing.

#### **`What is a collateral?`**

**Collateral** is an asset that a borrower pledges to a lender as security for a loan. If the borrower fails to repay the loan, the lender has the right to seize the collateral to recover the debt. **Collatera**l can be physical, like real estate or vehicles, or financial, such as stocks, bonds or digital assets in the context of DeFi. Using collateral reduces the lender’s risk, enabling the borrower to access larger loans or better terms depending on the value and stability of the collateral provided.

#### **`What assets can be used as collateral in Quill?`**

In **Quill**, users can deposit **ETH**, **staked Ethereum derivatives** such as **wrapped staked Ethereum (wstETH), wrapped ETH (wETH), wrapped EtherFi ETH (weETH)** and **SCR** to open a Trove. These assets provide a decentralized and yield-generating source of collateral, enhancing both stability and user returns within the protocol.

#### **`What happens if the collateral value fluctuates?`**

If the value of collateral assets in a Trove fluctuates, it affects the collateralization ratio of that Trove. When collateral values rise, the Trove’s collateralization ratio improves, reducing the risk of liquidation. Conversely, if the collateral’s value declines, the Trove may fall below the minimum collateralization threshold, increasing the risk of liquidation to maintain the protocol’s solvency and **$USDQ** stability.

#### **`How does liquidation work in Quill?`**

A **Liquidation** in **Quill** is triggered when a Trove’s collateralization ratio falls below the required minimum. When this happens, the Trove is closed and its collateral is partially or fully sold to maintain the system’s overall collateralization. **Quill**’s liquidation mechanism is designed to be efficient, prioritizing under-collateralized Troves and distributing (pro-rata) the recovered collateral to Stability Pool.

#### **`What are the risks associated with using Troves?`**

Using Troves comes with some risks:

* **Liquidation Risk**: If the collateral value drops significantly, a Trove may become under-collateralized and be liquidated. Users could lose part or all of their collateral if they are unable to maintain their Trove’s required collateralization ratio.
* **Volatility Risk**: Staked Ethereum derivatives, while yield-generating, are still subject to market fluctuations. Large price drops could impact the security of the Trove and the protocol’s stability.
* **Protocol Risk**: As with any DeFi protocol, there’s a risk associated with the underlying smart contracts. Although **Quill** is based on Liquity V2 and has undergone security [audits](https://quill-finance.gitbook.io/faq/faq/audits-and-security), smart contract risk can never be ruled out 100%.

By managing the collateralization ratios, users can mitigate some of these risks and maintain a secure position within **Quill**’s stablecoin ecosystem.


# Liquidations, Oracle and Redemptions

**`What are liquidations?`**

In **Quill**, liquidations are a critical mechanism that ensures the stability and security of the lending system. Here’s a detailed overview:

* **Purpose of Liquidations**: Liquidations occur when the value of a borrower’s collateral falls below a certain threshold (the collateralization ratio) necessary to secure their loan. If the collateral value drops too low, it poses a risk to the protocol and lenders, prompting the need for liquidation to recover funds.
* **Liquidation Process**: When a user's collateral becomes insufficient to cover their borrowed amount, the protocol triggers a liquidation event. In this event, the collateral backing the loan can be sold off to repay the debt. This process is automated, ensuring that the protocol remains solvent and that lenders' interests are protected​.
* **User Notifications**: **Quill** typically provides real-time notifications to users regarding the status of their collateral to help them manage their positions proactively and avoid liquidation. This transparency is crucial for borrowers to maintain their loans without risking their collateral.

Liquidations in the **Quill Protocol** serve to maintain the health of the lending ecosystem by ensuring that all loans are adequately secured, thus promoting overall stability.

**`How to avoid being liquidated?`**

To avoid being liquidated in the **Quill** protocol, borrowers can implement several strategies to maintain the necessary collateralization ratio and protect their positions. Here are some effective ways to minimize the risk of liquidation:

* **Maintain a Healthy Collateralization Ratio**: Ensure that the value of your collateral significantly exceeds the amount borrowed. Monitor market fluctuations and adjust your collateral as needed to create a buffer against price drops.
* **Regular Monitoring of Collateral Value**: Keep track of the market prices of your collateral assets. Regularly check the current value to anticipate potential risks, utilizing **Quill**'s dashboard tools for collateral health monitoring.
* **Deposit Additional Collateral**: If the value of your collateral approaches the liquidation threshold, deposit additional collateral to improve your collateralization ratio. This proactive step helps reinforce your position and prevent liquidation.
* **Limit Borrowing Amounts**: Borrow only what is necessary and avoid maxing out your borrowing capacity. Limiting the borrowed amount relative to your collateral reduces the likelihood of falling below the required collateralization ratio.
* **Stay Informed About Market Conditions**: Be aware of broader market trends or news that could affect the value of your collateral. Sudden shifts can impact collateral values quickly, so staying informed enables timely decision-making.
* **Repay borrowed $USDQ:**  Reduce the debt in your position, improving your collateral-to-debt ratio and lowering the risk of liquidation during market downturns.

By employing these strategies, users can better manage their collateral and reduce the risk of liquidation within **Quill.**

**`What oracle does Quill uses to determine ETH (and other collaterals) price?`**

For collateral asset price feeds, **Quill Finance** uses the [industry standard decentralized oracles Chainlink](https://docs.chain.link/data-feeds) as its primary oracle which provides highly secure and reliable, tamper-resistant data feeds. The included asset price feeds provided by Chainlink are:&#x20;

* weETH-USD
* wstETH-USD
* wETH-USD
* SCR-USD

Furthermore, **Quill** **Finance** will use [**Chainlink**](https://chain.link/) and [**Pyth**](https://www.pyth.network/) as its oracle solutions for USDQ-USD price feeds, which will become available in the near future.

**`What are redemptions?`**

In the **Quill** protocol, a redemption is the process of exchanging $**USDQ** for **ETH** at face value, meaning that 1 **$USDQ** is treated as equivalent to $1. This allows users to redeem their **$USDQ** for ETH (or any other collateral) at any time without restrictions, receiving the dollar value in ETH in return.

However, please note that a redemption fee applies to the redeemed amount. For instance, if the current redemption fee is **1%** and the price of ETH is **$500**, redeeming **100 $USDQ** would yield **0.198 ETH** (calculated as 0.2 ETH minus a redemption fee of 0.002 ETH).

Additionally, the amount redeemed is considered when calculating the base rate, which could influence the redemption fee, particularly for larger amounts.

**`If I make a redemption, am I paying my debt back?`**

No, redemptions in **Quill** operate as a distinct mechanism from repaying debt. To pay back your loans, you simply need to adjust your debt and collateral without involving the redemption process. This design simplifies the repayment process and allows for more flexibility in managing positions within the protocol.


# Price Stability and Stability Pool

**`How does $USDQ pegs to $1?`**

In **Quill**, the ability to redeem $**USDQ** for **ETH** (or other collaterals) at face value (for example 1 **$USDQ** for $1 worth of ETH) combined with a minimum collateral ratio of **110%** establishes both a price floor and a price ceiling through arbitrage opportunities. These mechanisms are referred to as **"hard peg mechanisms"** because they rely on direct processes.

Additionally, **$USDQ** benefits from less direct mechanisms, known as **"soft peg mechanisms,"** that help maintain its parity with the USD. One such mechanism is the concept of parity as a **Schelling point**, where **$USDQ** is treated as equivalent to USD, establishing an implied equilibrium within the protocol. Another mechanism involves the borrowing fee on new debts: as redemptions increase (suggesting **$USDQ** is trading below $1), the base rate also rises. This increase makes borrowing less attractive, helping to prevent an oversupply of **$USDQ** in the market that could drive its price further below $1.

**`What is the Stability Pool?`**

The **Stability Pool** serves as the first line of defense in ensuring the solvency of the **Quill** protocol. It acts as a source of liquidity to repay debts from liquidated loans, thereby ensuring that the total supply of $**USDQ** remains fully backed.

* When a loan is liquidated, the corresponding amount of **$USDQ** for the remaining debt is burned from the **Stability Pool**'s balance to settle that debt. In return, the entire collateral from the liquidated loan is transferred to the **Stability Pool**.
* The **Stability Pool** is funded by users, known as **Stability Providers**, who deposit **$USDQ** into it. Over time, these providers may experience a pro-rata reduction in their **$USDQ** deposits, but they gain a pro-rata share of the liquidated collateral.
* As loans are typically liquidated when their collateral ratios fall just below 110%, it is anticipated that Stability Providers will receive a greater dollar value of collateral compared to the debt they help to repay.

**`Should I deposit $USDQ to the Pool?`**

Stability Providers will make liquidation gains, receiving a pro-rata share of liquidated collateral and of the interest paid by the borrowers.

**`Can I lose money by depositing funds into the Stability Pool?`**

While liquidations typically occur at collateral ratios well above 100%, there exists a theoretical risk that a loan could be liquidated below 100% during extreme market conditions, such as a flash crash or an oracle failure. In such scenarios, you might experience a loss because the collateral received may be less than the reduction in your deposit.

If $**USDQ** trades above $1, liquidations could potentially become unprofitable for Stability Providers, even at collateral ratios exceeding 100%. However, this situation is hypothetical as **$USDQ** is expected to return to its peg. Therefore, any "loss" would only be realized if you withdrew your deposit and sold **$USDQ** while it was still priced above $1.

It's also important to acknowledge that while the system is rigorously audited, there is always a possibility — however minimal — that a hack or bug could occur, leading to user losses.


# Fee Model

**`What are the interest fees?`**

In **Quill**, interest fees are dynamic and based on a system where borrowers can set their own interest rates, offering them greater flexibility compared to **Liquity V1**. Interest rates range from 6% to 350%, depending on market conditions and the user's preferences. This flexibility allows borrowers to manage their debt costs based on market dynamics and liquidity needs.

**Quill** charges interest on loans over time, making it more appealing for short-term borrowing. Interest is calculated as simple, non-compounding interest, accruing linearly based on the debt amount and duration. Borrowers pay these fees in **$USDQ**, the stablecoin issued by the protocol​.

This approach ensures that borrowers can better control their borrowing costs and allows **Quill** to maintain the stability of its stablecoin through these market-driven adjustment

**`What are Redemption Fees and how do they work?`**

**Redemption fees** are a dynamic mechanism that adjusts based on redemption activity within the protocol. Here's how they work:

* **Fee Calculation**: When you redeem **$USDQ** for ETH, a percentage fee is charged on the amount being redeemed. This fee scales with the size of the redemption and the frequency of redemptions within the system.
* **Dynamic Adjustment**: The redemption fee increases as more redemptions occur. This means that during times of heavy redemption activity (when many users redeem **$USDQ**), the fee becomes higher, discouraging excessive redemptions and helping to stabilize the protocol.
* **Peg Maintenance**: Redemption fees play a critical role in maintaining the peg of **$USDQ** to $1. As redemptions increase, which often happens when **$USDQ** trades below $1, the fee rises to limit new redemptions, preventing further downward pressure on the peg.
* **Automated System**: The adjustment of redemption fees is automatic and decentralized, meaning it does not require governance votes or manual intervention. This ensures the protocol remains agile in maintaining stability.

This system helps balance user redemptions while protecting the protocol from instability caused by large-scale withdrawals.

**`What is a Base Rate and how does it work?`**

**Base Rate** refers to a variable interest rate that affects the fees users pay when they redeem stablecoins (**$USDQ**) for collateral. It dynamically adjusts based on the recent redemption activity within the protocol.

Here’s how it works:

* **Redemption Activity**: When users redeem their stablecoins, the base rate increases. The more frequent the redemptions, the higher the base rate becomes. This makes redemptions more expensive over time, discouraging excessive redemptions and helping maintain the stablecoin’s peg.
* **Fee Calculation**: The base rate directly impacts the **redemption fee**. If redemptions are occurring frequently (signaling potential instability in the stablecoin's peg), the redemption fee rises, making future redemptions costlier.
* **Peg Stability**: By adjusting the base rate, the protocol ensures that its stablecoin (**$USDQ**) maintains its peg to $1, discouraging destabilizing behaviours like mass redemptions during market volatility.

The **Base Rate** is an automated mechanism and part of the protocol's self-stabilizing features, ensuring long-term system sustainability.


# Governance

**`What is Governance?`**

**Governance** in a cryptocurrency project is the beating heart of its community, defining how decisions are made and ensuring that everyone has a voice in shaping the future. Imagine a vibrant ecosystem where stakeholders come together, united by a shared vision and empowered to drive innovation! Key elements of effective governance include decentralization, which spreads power among participants rather than concentrating it in the hands of a few.

Dynamic voting mechanisms transform every participant into a decision-maker, allowing for real-time input on crucial proposals. With a streamlined process for submitting ideas, anyone can contribute to the evolution of the protocol. This adaptability ensures that the project can pivot and respond to new challenges and opportunities.

Transparency is the glue that holds it all together, fostering trust and confidence among community members, while accountability keeps everyone in check, ensuring that decisions are made responsibly. In this exciting landscape, governance isn't just a framework—it's a thrilling journey of collaboration and growth that empowers everyone to leave their mark!

**`What will Governance mean for Quill and its holders?`**

In the context of **Quill**, **Governance** refers to the mechanisms and processes through which stakeholders will be able to participate in decision-making for the protocol. Governance on **Quill** will not be available from the get go and will start in Q1.&#x20;

Here are the future key aspects of governance for **Quill**:

* **Decentralized Autonomous Organization (DAO)**: **Quill** is governed by a DAO, which empowers users to propose, vote on and implement changes to the protocol. This structure ensures that all stakeholders have a say in how the protocol evolves, fostering community engagement and ownership​.
* **Decision-Making Power**: Governance in **Quill** allows users to influence critical aspects of the protocol, such as adjusting parameters related to borrowing fees, collateral types and other operational elements. This participatory model contrasts with more centralized systems, where decisions are typically made by a small group of developers or stakeholders​.
* **Community-Driven Development**: By leveraging a governance model, **Quill** encourages a collaborative approach to development and innovation. Users can submit proposals that reflect community needs and priorities, ensuring that the protocol adapts to the changing landscape of decentralized finance​.
* **Security and Stability**: Effective governance helps maintain the security and stability of the **Quill** protocol by allowing for timely adjustments to parameters in response to market conditions or potential risks. This proactive approach is crucial in the rapidly evolving DeFi ecosystem​.

Overall, governance in **Quill** promotes a more democratic and transparent framework, allowing users to shape the future of the protocol while maintaining a focus on security and community engagement.


# Audits and Security

**`Who audited Quill?`**

Liquity v2's smart contracts and protocol architecture underwent rigorous auditing by these firms:

[**Certora**](https://docs.quill.finance/faq/www.certora.com): A leader in formal verification for smart contracts, Certora ensures critical code correctness and security through advanced automated tools.

[**ChainSecurity**](https://docs.quill.finance/faq/www.chainsecurity.com): Specializing in blockchain security audits, ChainSecurity combines rigorous analysis with cutting-edge techniques to protect decentralized systems.

[**Coinspect**](https://www.coinspect.com/): Known for its focus on smart contract and blockchain audits, Coinspect delivers security reviews tailored to DeFi protocols and crypto projects.

[**Dedaub**](https://dedaub.com/): Offering deep-dive vulnerability assessments, Dedaub provides security solutions to enhance smart contract reliability and safeguard assets.

[**GetRecon**](https://getrecon.xyz/): A prominent auditing firm, Recon strengthens protocol resilience through expert code reviews and meticulous vulnerability assessments.

On top of that, **Quill** was also audited by **GetRecon**.

**`What was audited?`**

The audits focused on critical areas to ensure security, functionality, and resilience, including:

* **Smart Contracts**: All core contracts, particularly those managing **$USDQ** issuance, collateralization and liquidation mechanisms, were checked for vulnerabilities and potential exploits.
* **zk-Rollup Integration**: The integration with Scroll’s zk-Rollup technology were assessed for security risks, ensuring seamless and safe Layer 2 functionality.
* **Governance Modules**: The governance contracts, launching in Q1, will undergo auditing to secure voting mechanisms, proposal handling, and treasury controls.
* **Economic Security**: An economic audit verified that the protocol’s fee structures, stability mechanisms and liquidation penalties are correctly implemented to prevent exploits or systemic risks.

These audits are fundamental to **Quill**’s commitment to user security and protocol reliability, ensuring a robust and secure DeFi platform for users.

**`How does Quill ensure security in zk-Rollups?`**

**Quill** ensures security within its zk-Rollup implementation by leveraging several layers of protection:

1. **Zero-Knowledge Proofs**: zk-Rollups generate cryptographic proofs (specifically, validity proofs) for every batch of transactions. These proofs are submitted to the Layer 1 blockchain, where they verify that each transaction in the rollup batch is valid. This mechanism prevents any fraudulent or incorrect data from being processed, as only valid proofs are accepted on Layer 1.
2. **Inherited Layer 1 Security**: Because zk-Rollups rely on the underlying security of Layer 1 (Ethereum, in the case of **Quill** on Scroll), they inherit its robust decentralization and security. This means that zk-Rollup transactions benefit from Ethereum’s consensus and integrity, adding a layer of protection against network attacks.
3. **Audits and Code Reviews**: **Quill**’s zk-Rollup implementation undergoes rigorous security audits by reputable firms like Trail of Bits and DeBaub. These audits review the smart contracts and rollup code for vulnerabilities, ensuring that the protocol maintains a secure and resilient architecture.
4. **Data Availability on Layer 1**: **Quill**’s zk-Rollup solution ensures data availability by recording transaction data on Layer 1. This means that in the unlikely event of an issue on Layer 2, all data required to restore the network’s state remains accessible and secure on Ethereum.
5. **Continuous Monitoring**: **Quill** employs real-time monitoring and alert systems to quickly detect and respond to any unusual activity or potential vulnerabilities. This proactive approach ensures ongoing security for user assets and transactions.

Together, these elements enable **Quill** to offer high performance without compromising on security, creating a reliable DeFi environment on zk-Rollups.


# Risks and Disclosures

#### **`What are the risks of using Quill?`**

Using **Quill**, like any DeFi protocol, carries certain risks. These include **liquidation risk** (if collateral value drops too low), **smart contract risk** (potential vulnerabilities in the protocol’s code), and **market risk** (price volatility affecting collateral). Users should assess their risk tolerance, monitor collateral ratios and be familiar with protocol mechanisms before engaging.

#### **`Is there a risk of losing collateral?`**

Yes, there is a risk of **losing collateral if it becomes under-collateralized**. If the value of the collateral drops below the minimum required collateralization ratio, the protocol may trigger liquidation to protect the stability of the **$USDQ** stablecoin. During liquidation, a portion or all of the collateral will be used to cover the outstanding debt, resulting in potential losses for the user.

#### **`How does Quill manage volatility risks?`**

Quill manages volatility risks through its **collateralization requirements** and **automated liquidation process**. Users must maintain a sufficient collateralization ratio to avoid liquidation and the protocol automatically liquidates under-collateralized positions to protect overall system health. Additionally, by supporting only highly liquid and reputable assets (such as wstETH, weETH, wETH and SCR), **Quill** mitigates exposure to extreme volatility.

#### **`What should I know about DeFi risks in general?`**

In DeFi, risks include **smart contract risk** (vulnerabilities in the code), **protocol risk** (potential for governance or operational issues), **market risk** (fluctuations in asset prices) and **liquidity risk** (availability of assets during high demand). Users should be aware that DeFi protocols are often experimental and should only use funds they’re willing to risk. Staying informed, following project updates and using well-audited platforms can help mitigate some of these risks.


# Troubleshooting (need to have a look at the UI)


# Glossary


# Contract Addresses

## Active Contracts

All contracts are deployed to Scroll Mainnet

### Top-Level Contracts

| Contract                  | Address                                    |
| ------------------------- | ------------------------------------------ |
| USDQ                      | 0xdb9e8f82d6d45fff803161f2a5f75543972b229a |
| Collateral Registry       | 0x358d90036e70542ae24b3813c0efecc1f8811442 |
| Hint Helpers              | 0x64207686342b27298ed5aa06ef18628abc0bfb39 |
| Multi Trove Getter        | 0x2cdb9d86cd71391e1e1ba3b55860b60aaa6b1b1d |
| WETH Token                | 0x5300000000000000000000000000000000000004 |
| Access Manager            | 0xbe589551397d0f28255e429ddb478620b1c2f08a |
| Scroll Sequencer Sentinel | 0xebade80d7eb7392a1366936ea278d7ca89239208 |

***

### WETH Branch

| Contract            | Address                                    |
| ------------------- | ------------------------------------------ |
| Active Pool         | 0x9e5f7b870867a829b9dc3e4b3b1e3680b7a52eda |
| Addresses Registry  | 0xe58a321eed288c84fd0b4f6d4892d099054caebd |
| Borrower Operations | 0x0f863bd95539d3c7640a7954114051aca8f19306 |
| Coll Surplus Pool   | 0xa04977c48bdbbeedc697e4f6d519fc9877891e90 |
| Collateral Token    | 0x5300000000000000000000000000000000000004 |
| Default Pool        | 0xb7f8affedd762431fa7ee81d16c81641a22bd7b7 |
| Leverage Zapper     | 0xf08e2de38eef727b01066a6db9b1f46622c4df26 |
| Price Feed          | 0xb3b7b3764a445bea9a50321e5df024f4daa9f5c9 |
| Sorted Troves       | 0x3bab7c4c611a2574b46054345229b879cc759358 |
| Stability Pool      | 0x60f8d7cff7822b564758114a9ef557a651296604 |
| Trove Manager       | 0x9d2ad9712f3905f3e7803c92d027a197b4c8da90 |
| Trove NFT           | 0xb8e301a3f21159e5b4081206ac6d00f095a1632e |

***

### WSTETH Branch

| Contract            | Address                                    |
| ------------------- | ------------------------------------------ |
| Active Pool         | 0x7fa3dc8729b7d56dc36651d01ab4a27e882fdcf1 |
| Addresses Registry  | 0xbe4b85734a046b34b24c2538cba6205c98a74aeb |
| Borrower Operations | 0x3882666ba0d84ba2f4ea8f489df9a3adefeaa504 |
| Coll Surplus Pool   | 0xf33ebc15ce3e81cb8c39707af2466c475aaa130b |
| Collateral Token    | 0xf610a9dfb7c89644979b4a0f27063e9e7d7cda32 |
| Default Pool        | 0x61ae5b76167534a237bf5eebbb3a88899b6760fc |
| Leverage Zapper     | 0x757126b92078ab726bbc98e55b365eca8919910c |
| Price Feed          | 0x1f07651182559bf23240632484669bc01c5b9afb |
| Sorted Troves       | 0x98c2a6ba4e34c638ca31ddff173625b4628882bd |
| Stability Pool      | 0xb2c4e8c5486d3623365526fdd1232578d1646da3 |
| Trove Manager       | 0xa57aae77fbb22f9c1fb55d516e44b856614e143e |
| Trove NFT           | 0x6f7e8e9ef5a62ff32eca0e19846060bf79228eba |

***

### WEETH Branch

| Contract            | Address                                    |
| ------------------- | ------------------------------------------ |
| Active Pool         | 0x08e6b6333cdc86f5cbd47a1c4f72f6b5fbef6b36 |
| Addresses Registry  | 0x6a036d49287fd7d6808629e95f831a1addc62b95 |
| Borrower Operations | 0xc4b238cb313f2ebc35c4be14156d109f724f99f4 |
| Coll Surplus Pool   | 0x1fce991e88007546e3597f3ca6d8c8f1cb014e77 |
| Collateral Token    | 0x01f0a31698c4d065659b9bdc21b3610292a1c506 |
| Default Pool        | 0x5ac0dd02720020e51eb725ef9cbf25475b453a78 |
| Leverage Zapper     | 0xba546c927b59d619c55a3ab5237ec82ff86e3265 |
| Price Feed          | 0x4f2be395032c67396f5d1e10c8abfb1df7267eef |
| Sorted Troves       | 0x82ead13247552b8a26a1e34045c6370e307653c1 |
| Stability Pool      | 0x90ace556c09465ca9fbe8fd3e2a1246ac20c70f1 |
| Trove Manager       | 0xf645d67733b76e9d69908108d2eef6bec53dd7c8 |
| Trove NFT           | 0xb2dfbfcb9c9f69228041e119bb2daa46b3cfd10c |

***

### SCR Branch

| Contract            | Address                                    |
| ------------------- | ------------------------------------------ |
| Active Pool         | 0xdbfeee5139af44ed0cdc6a56de35aaaba207d69b |
| Addresses Registry  | 0x1cb0f2a6ba0c22388dd28550a90ec5d46c82cdba |
| Borrower Operations | 0x36717e3e81a771099c8d3b883ffdb24b25c70e97 |
| Coll Surplus Pool   | 0x66af04f5235b2c42dad2fad4f8f0f25754e0e516 |
| Collateral Token    | 0xd29687c813d741e2f938f4ac377128810e217b1b |
| Default Pool        | 0xef3fc63729c9daee7d05d3fb1d74e95d7ddd71e4 |
| Leverage Zapper     | 0x3bcc123a224f13ab8dc5385f2bd70e474c685fc4 |
| Price Feed          | 0xeee530331ebb3dd1067859dc712905386e5c0661 |
| Sorted Troves       | 0xbe7aeaa87091c8e6c8f9e089a8c994294e116876 |
| Stability Pool      | 0x31d6efc07ae8f9291932b0ac8ebc794b85696376 |
| Trove Manager       | 0x862ec870184a66fd3ed6bd7e122bc18355002076 |
| Trove NFT           | 0x2a9bcb5f5f965115c202b6cc08d21bde701cc33c |

***

## v0 Legacy contracts

These addresses are no longer being used.

### Top level contracts

| Name                      | Address                                                                                                                 |
| ------------------------- | ----------------------------------------------------------------------------------------------------------------------- |
| Collateral Registry       | [0xcc4f29f9d1b03c8e77fc0057a120e2c370d6863d](https://scrollscan.com/address/0xcc4f29f9d1b03c8e77fc0057a120e2c370d6863d) |
| USDQ                      | [0x6f2a1a886dbf8e36c4fa9f25a517861a930fbf3a](https://scrollscan.com/address/0x6f2a1a886dbf8e36c4fa9f25a517861a930fbf3a) |
| Hint Helpers              | [0xd341f3c6944ab038705f88064f26ba46e9e1e63a](https://scrollscan.com/address/0xd341f3c6944ab038705f88064f26ba46e9e1e63a) |
| Multi Trove Getter        | [0xd76f88017f4fc0d73daf837292312be5f5dceead](https://scrollscan.com/address/0xd76f88017f4fc0d73daf837292312be5f5dceead) |
| Access Manager            | [0x8b8f97f69226f2b339a12492c646f58dd35d3fea](https://scrollscan.com/address/0x8b8f97f69226f2b339a12492c646f58dd35d3fea) |
| Scroll Sequencer Sentinel | [0xc8f899de0e736e17e0a67bfff024ab85ccb91932](https://scrollscan.com/address/0xc8f899de0e736e17e0a67bfff024ab85ccb91932) |

### WETH Branch

| Name                | Address                                                                                                                 |
| ------------------- | ----------------------------------------------------------------------------------------------------------------------- |
| Registry            | [0x22cb3cfe6205e0edbad751de8cf3612625cefe80](https://scrollscan.com/address/0x22cb3cfe6205e0edbad751de8cf3612625cefe80) |
| Collateral Token    | [0x5300000000000000000000000000000000000004](https://scrollscan.com/address/0x5300000000000000000000000000000000000004) |
| Borrower Operations | [0x05b229f984584589d9af5f768eb4bfccb3f8324f](https://scrollscan.com/address/0x05b229f984584589d9af5f768eb4bfccb3f8324f) |
| Sorted Troves       | [0x0292504b0496c2f02b8221fdf7545409e8507f35](https://scrollscan.com/address/0x0292504b0496c2f02b8221fdf7545409e8507f35) |
| Stability Pool      | [0x2c627886421ee62e1c51a4b4248a751089ae57b6](https://scrollscan.com/address/0x2c627886421ee62e1c51a4b4248a751089ae57b6) |
| Trove Manager       | [0x8df7b9f31db3980732a1541c49e50bda62846655](https://scrollscan.com/address/0x8df7b9f31db3980732a1541c49e50bda62846655) |
| Trove NFT           | [0x1a6d1dec3ee6ab6a8c7544c549e0784840a18225](https://scrollscan.com/address/0x1a6d1dec3ee6ab6a8c7544c549e0784840a18225) |
| Metadata NFT        | [0xca20f64e21046c3f906696f73b41d33084565dd1](https://scrollscan.com/address/0xca20f64e21046c3f906696f73b41d33084565dd1) |
| Price Feed          | [0xf42fb3da9628e86476f26f71cf608cb1b109e8e8](https://scrollscan.com/address/0xf42fb3da9628e86476f26f71cf608cb1b109e8e8) |
| Interest Router     | [0x9c339bb827555ae214df17b78c1aa28acee183ce](https://scrollscan.io/0x9c339bb827555ae214df17b78c1aa28acee183ce)          |
| WETH Zapper         | [0xb58e805f485f9b1117346fadd1c61a62ad261212](https://scrollscan.io/0xb58e805f485f9b1117346fadd1c61a62ad261212/)         |
| Leverage Zapper     | [0xa3402b95a3ec24804e3d69f91d059742887bdd8a](https://scrollscan.io/0xa3402b95a3ec24804e3d69f91d059742887bdd8a/)         |
| Active Pool         | [0x2e003dfb777be3b851795a8bf50dcab75e38285e](https://scrollscan.io/0x2e003dfb777be3b851795a8bf50dcab75e38285e/)         |
| Coll Surplus Pool   | [0x2b6f138e6c607962a527edbb731773aedded2e3b](https://scrollscan.io/0x2b6f138e6c607962a527edbb731773aedded2e3b/)         |
| Default Pool        | [0x678095063ac0f187b76ecff225ba98037b3943e5](https://scrollscan.io/0x678095063ac0f187b76ecff225ba98037b3943e5/)         |
| Gas Pool            | [0x47402be7a8f77d32ab3abff0d65f61f80d6a9702](https://scrollscan.io/0x47402be7a8f77d32ab3abff0d65f61f80d6a9702/)         |

### WSTETH Branch

| Name                | Address                                                                                                                 |
| ------------------- | ----------------------------------------------------------------------------------------------------------------------- |
| Registry            | [0xfba16199038b5b347cf8b1f2c769ac3347797b60](https://scrollscan.com/address/0xfba16199038b5b347cf8b1f2c769ac3347797b60) |
| Collateral Token    | [0xf610a9dfb7c89644979b4a0f27063e9e7d7cda32](https://scrollscan.com/address/0xf610a9dfb7c89644979b4a0f27063e9e7d7cda32) |
| Borrower Operations | [0xb141f8b767e55099cea16cf969d23d6e0cb2db95](https://scrollscan.com/address/0xb141f8b767e55099cea16cf969d23d6e0cb2db95) |
| Sorted Troves       | [0x5ec123de2f4ce119b100fdd6d53d9268d4bc7508](https://scrollscan.com/address/0x5ec123de2f4ce119b100fdd6d53d9268d4bc7508) |
| Stability Pool      | [0x4c05eecd9193e0ac8bc80e3e4248e7808d89eb9b](https://scrollscan.com/address/0x4c05eecd9193e0ac8bc80e3e4248e7808d89eb9b) |
| Trove Manager       | [0x511973b7e39682f258ce9a5745c7450ce6af3d11](https://scrollscan.com/address/0x511973b7e39682f258ce9a5745c7450ce6af3d11) |
| Trove NFT           | [0x001e79b97bb09c7eb5110da622e4258222c01dce](https://scrollscan.com/address/0x9c339bb827555ae214df17b78c1aa28acee183ce) |
| Metadata NFT        | [0x078598a917bcd86a9294ea800e80b6be55a92b2b](https://scrollscan.com/address/0x078598a917bcd86a9294ea800e80b6be55a92b2b) |
| Price Feed          | [0xa316e6f3245c5dbbdae1fc9ad0cbe87f75087f7f](https://scrollscan.com/address/0x078598a917bcd86a9294ea800e80b6be55a92b2b) |
| Interest Router     | [0x9c339bb827555ae214df17b78c1aa28acee183ce](https://scrollscan.com/address/0x9c339bb827555ae214df17b78c1aa28acee183ce) |
| Gas Comp Zapper     | [0xcd5ba39d46b0c41ced6105e444c73122e63a8f4d](https://scrollscan.com/address/0xcd5ba39d46b0c41ced6105e444c73122e63a8f4d) |
| Leverage Zapper     | [0x7c5896b48db2fdf8c1b449473d21eaa0ff139bac](https://scrollscan.com/address/0x7c5896b48db2fdf8c1b449473d21eaa0ff139bac) |
| Active Pool         | [0x78d4a85e2baf8186ecd0792dcba1c7a833de0b77](https://scrollscan.com/address/0x78d4a85e2baf8186ecd0792dcba1c7a833de0b77) |
| Coll Surplus Pool   | [0x6110fc709a0240f929ce1daecf6f2b5f04546a11](https://scrollscan.com/address/0x6110fc709a0240f929ce1daecf6f2b5f04546a11) |
| Default Pool        | [0x7a7bf25c8e538a8af1b9092529c7623d49d2f2f4](https://scrollscan.com/address/0x7a7bf25c8e538a8af1b9092529c7623d49d2f2f4) |
| Gas Pool            | [0x522770bb4f6973ba3dafbe72cb1d69836de71abe](https://scrollscan.com/address/0x522770bb4f6973ba3dafbe72cb1d69836de71abe) |

### WEETH Branch

| Name                | Address                                                                                                                 |
| ------------------- | ----------------------------------------------------------------------------------------------------------------------- |
| Registry            | [0x177798337a5239eb48909c3efe2b1199c1cb7ff7](https://scrollscan.com/address/0x177798337a5239eb48909c3efe2b1199c1cb7ff7) |
| Collateral Token    | [0x01f0a31698c4d065659b9bdc21b3610292a1c506](https://scrollscan.com/address/0x01f0a31698c4d065659b9bdc21b3610292a1c506) |
| Borrower Operations | [0x7260e429473f872307f67b2a6267695353b413c9](https://scrollscan.com/address/0x7260e429473f872307f67b2a6267695353b413c9) |
| Sorted Troves       | [0xff2e56fca09c53a668a01e34cf1e17bec6be2503](https://scrollscan.com/address/0xff2e56fca09c53a668a01e34cf1e17bec6be2503) |
| Stability Pool      | [0x01149666c61f5a605d2f9296d9da3b49165e04ec](https://scrollscan.com/address/0x01149666c61f5a605d2f9296d9da3b49165e04ec) |
| Trove Manager       | [0xee7a132c4775d22ff204f017a7f3200df9eb1eaa](https://scrollscan.com/address/0xee7a132c4775d22ff204f017a7f3200df9eb1eaa) |
| Trove NFT           | [0xece6658ab0501d3ca1f5a5a5b89e5d23b7628510](https://scrollscan.com/address/0xece6658ab0501d3ca1f5a5a5b89e5d23b7628510) |
| Metadata NFT        | [0x9266349c765c6d83a0fd5724c35a7520bff4d687](https://scrollscan.com/address/0x9266349c765c6d83a0fd5724c35a7520bff4d687) |
| Price Feed          | [0x2c310980e94e8e9fb5f67e1db171729f71c5a896](https://scrollscan.com/address/0x2c310980e94e8e9fb5f67e1db171729f71c5a896) |
| Interest Router     | [0x9c339bb827555ae214df17b78c1aa28acee183ce](https://scrollscan.com/address/0x9c339bb827555ae214df17b78c1aa28acee183ce) |
| Gas Comp Zapper     | [0x084fd2161694c52b8be8cb252d77196a038bf624](https://scrollscan.com/address/0x084fd2161694c52b8be8cb252d77196a038bf624) |
| Leverage Zapper     | [0xb8c6eadda4fa69d3c1c7e2af5bf877590b89249a](https://scrollscan.com/address/0xb8c6eadda4fa69d3c1c7e2af5bf877590b89249a) |
| Active Pool         | [0xc7021c5d1cd7e3d280976a89a02a8e469d7a1a0d](https://scrollscan.com/address/0xc7021c5d1cd7e3d280976a89a02a8e469d7a1a0d) |
| Coll Surplus Pool   | [0x356da4dfe1fbbb93a6ffd0b78397300fac8c7ce1](https://scrollscan.com/address/0x356da4dfe1fbbb93a6ffd0b78397300fac8c7ce1) |
| Default Pool        | [0x5f81680409ac2bbae7afbc38f59c85d7a5adf7b3](https://scrollscan.com/address/0x5f81680409ac2bbae7afbc38f59c85d7a5adf7b3) |
| Gas Pool            | [0x3c2a19935d62353a7ff7c8e46f5f352b61e3f6ec](https://scrollscan.com/address/0x3c2a19935d62353a7ff7c8e46f5f352b61e3f6ec) |

### SCR Branch

| Name                | Address                                                                                                                 |
| ------------------- | ----------------------------------------------------------------------------------------------------------------------- |
| Registry            | [0xdc60fc54fcb9e690b1d328e2e7507d484e528c85](https://scrollscan.com/address/0xdc60fc54fcb9e690b1d328e2e7507d484e528c85) |
| Collateral Token    | [0xd29687c813d741e2f938f4ac377128810e217b1b](https://scrollscan.com/address/0xd29687c813d741e2f938f4ac377128810e217b1b) |
| Borrower Operations | [0xf02433e0f4d85216915502b800490c7172dc23e8](https://scrollscan.com/address/0xf02433e0f4d85216915502b800490c7172dc23e8) |
| Sorted Troves       | [0x605fa99e75c195912dff63678b7f3eefa2db4a74](https://scrollscan.com/address/0x605fa99e75c195912dff63678b7f3eefa2db4a74) |
| Stability Pool      | [0xbcb64a2eff9cd8d10f24b5fc74031a157391a496](https://scrollscan.com/address/0xbcb64a2eff9cd8d10f24b5fc74031a157391a496) |
| Trove Manager       | [0x64493522dd375890fd2eb25324e3555279b505b2](https://scrollscan.com/address/0x64493522dd375890fd2eb25324e3555279b505b2) |
| Trove NFT           | [0x5f3a62ad9cb7e146c7584f1ac799e4e505465f0f](https://scrollscan.com/address/0x5f3a62ad9cb7e146c7584f1ac799e4e505465f0f) |
| Metadata NFT        | [0x1de136089a1cb7f87b8bbe68be7b099ed2c4e70d](https://scrollscan.com/address/0x1de136089a1cb7f87b8bbe68be7b099ed2c4e70d) |
| Price Feed          | [0xf564fdd6c5414d88ab954ca1af1be7ae18e36737](https://scrollscan.com/address/0xf564fdd6c5414d88ab954ca1af1be7ae18e36737) |
| Interest Router     | [0x9c339bb827555ae214df17b78c1aa28acee183ce](https://scrollscan.com/address/0x9c339bb827555ae214df17b78c1aa28acee183ce) |
| Gas Comp Zapper     | [0xc03f55324673f60ed64ed12c102d02555e681921](https://scrollscan.com/address/0xc03f55324673f60ed64ed12c102d02555e681921) |
| Leverage Zapper     | [0x54f457c984a554c119cc0f030d13319b4b7ab2fb](https://scrollscan.com/address/0x54f457c984a554c119cc0f030d13319b4b7ab2fb) |
| Active Pool         | [0xa33715967d78b12c718953d2269ddeb45576704c](https://scrollscan.com/address/0xa33715967d78b12c718953d2269ddeb45576704c) |
| Coll Surplus Pool   | [0x8a037c2fdf2ca58dc6faa1c658c9506b22f8a18e](https://scrollscan.com/address/0x8a037c2fdf2ca58dc6faa1c658c9506b22f8a18e) |
| Default Pool        | [0x3863844014ca0c5f886ba8394d7d8ac94f0bba89](https://scrollscan.com/address/0x3863844014ca0c5f886ba8394d7d8ac94f0bba89) |
| Gas Pool            | [0xca8f47deb53df1ce2bdb1ab732a8031f848ca607](https://scrollscan.com/address/0xca8f47deb53df1ce2bdb1ab732a8031f848ca607) |


# Audits

[GetRecon - Core protocol Audit Report](https://github.com/subvisual/quill-audit/blob/main/GetRecon.pdf), January 2025

In addition to **Quill**'s dedicated audit, our codebase also benefits heavily from all the security work done on the original Liquity V2 codebase, which are listed in [Liquity's official docs](https://docs.liquity.org/v2-documentation/technical-resources#audit-reports).


# Community

At **Quill**, we recognize that a thriving community is essential for our success and growth. We invite all users—whether you're a developer, investor, or simply passionate about decentralized finance—to engage and contribute your insights. Your feedback can shape the future of **Quill** and help us improve the platform to better serve everyone.

Join our [**Discord** ](https://discord.gg/quill)community, where you can connect with other members, ask questions, share ideas, and participate in discussions about ongoing projects and developments. This is your opportunity to collaborate with like-minded individuals and be part of a dynamic ecosystem.

Additionally, we regularly host events, AMAs and discussions where you can learn more about our roadmap, share your thoughts and influence our governance. We believe that everyone has a role to play in building a better **Quill**.

Join our [**Discord**](https://discord.gg/quill) and become an integral part of our journey!&#x20;

Follow us on [**Twitter / 𝕏**](https://x.com/QuillFi) for the latest updates, announcements, and insights about Quill. It's the best way to stay informed about new features, community events, and key milestones. Join the conversation, interact with us, and help spread the word about Quill by liking, sharing, and commenting on our posts. Your voice matters—let's grow together!

Together, let's innovate and drive the future of DeFi.


# Brand

## Logos

***

{% tabs %}
{% tab title="Quill Finance (280x280)" %}

<figure><img src="/files/y2TP6RlGtlkEtBtTBQRm" alt="" width="140"><figcaption><p>Quill Finance Logo 1</p></figcaption></figure>

<figure><img src="/files/LjzOQBPTGUDbE9wXICAZ" alt="" width="140"><figcaption><p>Quill Finance Logo 2</p></figcaption></figure>
{% endtab %}

{% tab title="Quill Finance (1200x156)" %}

<figure><img src="/files/6cW07Lp8jZsjwymz9Oxy" alt=""><figcaption><p>Quill Finance Logo 3</p></figcaption></figure>

<figure><img src="/files/tKo5jMWRWU3NI1NROh2K" alt=""><figcaption><p>Quill Finance Logo 4</p></figcaption></figure>
{% endtab %}

{% tab title="$USDQ" %}

<figure><img src="/files/55PxdJwmbzXCn3LvYRSt" alt="" width="140"><figcaption><p>$USDQ Logo 1</p></figcaption></figure>

<figure><img src="/files/wvYgDfDI1sUKaCX5VVai" alt="" width="140"><figcaption><p>$USDQ Logo 2</p></figcaption></figure>
{% endtab %}

{% tab title="$QUILL" %}
\[ Coming Soon... ]
{% endtab %}
{% endtabs %}

## Fonts

***

{% embed url="<https://cotypefoundry.com/font-family/aeonik>" %}

## Colors

***

<figure><img src="/files/tviILjMWHYgoIVkoKUfG" alt=""><figcaption><p>Quill Finance Color Palette</p></figcaption></figure>

<figure><img src="/files/mIRNzhuzFLCkELD5JeWl" alt=""><figcaption><p>Logo Main Color Versions</p></figcaption></figure>

<figure><img src="/files/VzoDlGrM7bJCW68sajDE" alt=""><figcaption><p>Logo Secondary Color Versions</p></figcaption></figure>