What Is QuickSwap? The Main Functions Of QuickSwap
30 March 2022
The Polygon network powers QuickSwap, an Automated Market Maker. The liquidity pool model is identical to that of Uniswap, which is a clone of this one. Liquidity pool participants receive transaction fees from other users exchanging tokens through the pool.
Polygon network’s QuickSwap service is well-known for its lightning-fast transfers and affordable costs. ERC-20 tokens may be traded using this protocol and the Ethereum network. However, there’s always the possibility of a short-term setback.
The QuickSwap token is QUICK. QuickSwap’s liquidity pool allows you to exchange other tokens for QUICK. In this post, bePAY’s going to show you all the deep information about QuickSwap project.
What Is QuickSwap?
QuickSwap began in October 2020, four months after the launch of Polygon’s mainnet. The launch followed a transparent, community-focused governance structure, with 96.75% of the token supply allocated for the community and 3.25% reserved for the team. No pre-sales, private sales, or seed rounds were conducted. Token holders have voting rights on the network, and stakers can profit from trading fees.
The QuickSwap protocol was created to address user experience issues that have existed in Ethereum, including high transaction fees and long transaction delays. These concerns have hampered the mainstream adoption of DeFi, primarily because transaction costs become prohibitively expensive during periods of heavy network activity. QuickSwap has addressed this issue by building on top of the Polygon Layer-2 scalability solution, which offers near-zero transaction costs and a transaction rate of up to 65,000 per second.
By building on top of Polygon, QuickSwap aims to level the playing field and address the user experience issue of high transaction fees and latency, while also reimagining how people interact with Decentralized Exchanges and DeFis through the development of user interfaces that make Layer-2 transactions more accessible to non-technical users.
What is QuickSwap?
Considering the success of Uniswap, which has been battle-tested and processes millions of dollars in daily crypto volume, the team behind QuickSwap chose to fork the code behind Uniswap (which uses an automated market maker system rather than a traditional order book) without changing the underlying code.
Rather than modify the code underlying the forked Decentralized Exchange, the QuickSwap team chose to add features such as Dragon Lair, which allows users to earn protocol fees by staking their QUICK tokens, Limit Order support, and Dragon Syrup, which allows holders of dQUICK (QuickSwap’s interest-bearing token) to earn additional yields from projects traded on QuickSwap Exchange.
>> Read also: What is DeFi and how does it work?
QuickSwap Main Features
Despite the fact that QuickSwap Exchange is based on layer 2 infrastructure, it can provide many of the same functionality as leading DEXs. Additionally, it fills in the gaps left by popular DEXs – particularly, rapid transactions with virtually no transaction costs. The following are the features included with QuickSwap:
Users are not required to get a license to advertise any token among the thousands of ERC-20 standard tokens available on QuickSwap. This is fundamentally the same as every other DEX platform. To list tokens, all that is required is liquidity for a trading pair. Unlike traditional exchanges, these DEXs do not require approval from any individual or entity in order to list an asset on them.
Layer 2 transactions: Transactions at the layer 2 level: Polygon powers QuickSwap transactions. This implies that asset exchanges on QuickSwap exchange take less than two seconds and cost a fraction of what they do directly on Ethereum.
Non-custodial Trading: Unlike CEX exchanges like Binance or Huobi Global, customers at QuickSwap may trade straight from their wallets such as Metamask, which supports a variety of ERC-20 assets. This implies that you retain total ownership of the token’s private keys, as tokens are not required to be deposited in the wallets of CEX exchanges.
QuickSwap users can contribute liquidity to trading pools. And to encourage this, they will be compensated appropriately.
QuickSwap main features
Yield farming: QuickSwap costs 0.3% on each transaction. A part of such charge is distributed proportionately to liquidity providers based on their ownership in the liquidity pool.
Community Administration: Holders of the QUICK token will control the platform, following the appropriate procedures to amend the protocol as necessary. QUICK holders can propose protocol improvements and vote on issues like whether pools qualify for quick mining, among others.
The QuickSwap platform relies on an ERC-20 token known as the QUICK token. The QUICK token, which went live in February 2021, saw a gain of more than 90% on its first day of trade. As of this writing, the Quick token is selling at roughly $940 each. According to CoinGecko, QuickSwap has a market worth of $148 million and a maximum supply of 1 million QUICK tokens.
To establish a sustainable and healthy ecosystem, the distribution strategy for the Quick token was fair. The QUICK coin received no seed, private or public financing. Over the following four years, 90% of all QUICK tokens will be devoted to liquidity mining.
Users of QuickSwap can earn up to 0.3% of trading costs by supplying liquidity to trading pairs. It’s also worth noting that liquidity providers are paid in the native QUICK tokens. All decisions about the QuickSwap protocol will be made by members of the QUICK coin community. Token holders will be able to vote on protocol modifications in the future as a result of this update. Decentralization is the goal of the QuickSwap token, which is based on the QUICK tokens.
How To Use QuickSwap?
We provide step-by-step instructions for using QuickSwap:
Establish Wallet Connection
The QuickSwap platform supports the following wallet types:
- Coin98 Wallet
- Coinbase Wallet
Quickswap wallet connection
Users must have $MATIC in their Metamask wallet in order to utilize the QuickSwap platform (Polygon network). We already have some $MATIC in our Binance exchange account, which we will transfer to our Metamask for this exercise.
You can swap one token for another by using the swap function. The QuickSwap platform supports a large variety of different tokens. To begin swapping, you must first pick the input and output tokens. Then, specify the number of input tokens to swap. As a result, the app will indicate the number of output tokens you will get immediately.
Following that, you must “Confirm” the procedure, and the resulting token will appear in your Metamask wallet (Polygon network) immediately upon confirmation.
QuickSwap allows for the purchase and sale of tokens using limit orders. Limit orders are supported by Gelato, a third-party protocol, and are presently in beta. Take extreme caution when linking your wallet and utilizing this feature.
The processes are rather straightforward. Simply choose the two assets you wish to exchange. The assets at the top will be utilized in trade, while the ones below will be yours. From the bottom area, you may view open, canceled, and executed orders.
The benefit of the “limit order” function is that consumers do not need to be online in order to earn. They may specify the price at which they want to purchase or sell their assets, and the Gelato bots will monitor and execute their limit orders.
Liquidity may be added to QuickSwap exchange liquidity pools by users. They receive the liquidity pool (LP) pair token in exchange. Additionally, liquidity providers get a 0.25% commission on trading costs associated with their participating pool.
Liquidity on Quickswap
- Add liquidity
To add liquidation, navigate to the Pool tab and select Add Liquidation. Following that, the user must pick the LP token pair. We now have some $MATIC and USDT tokens in our wallet, which we will use to increase liquidity. Note: Users must contribute an equal quantity of both tokens to the liquidity pool.
Choose your token pair, in this example $MATIC and USDT. Enter a value for one token and the value for the other token will be shown automatically. Then, if users are utilizing the token team for the first time to increase liquidity, they must approve the pair first.
Finally, after your application has been accepted, you may click the supply button. Your percentage stake in the pool will be displayed in the application. Confirm the supply if you are satisfied. Following the successful completion of the transaction, you will become a liquidity provider in the specified pool. You will be able to receive a liquidity charge on each transaction that is made against the liquidity pool.
- Remove liquidity
Users may withdraw their liquidity from a pool in part or full at any moment. When you request a withdrawal, you will receive your tokens and any fees collected during the time the tokens were in the pool. Click the Eliminate button in the liquidity section to remove any existing liquidity. Now, choose the liquidity that you wish to delete. Following that, enter the percentage of liquidity you intend to remove and confirm the operation.
Finally, you must authorize the transaction before deleting the token. Once deleted, your LP token balance will reset to zero and the corresponding tokens will be returned to your wallet.
QuickSwap provides many farming tools and methods for users to deposit their liquidity pool tokens in order to earn more revenue.
Farming on Quickswap
- LP mining
The LP mining section contains a list of several pools where you can deposit your LP tokens and earn $QUICK. To access the various pools listed in this section, click on LP mining. It will link you to a page with a list of liquidity farm pools in which you may participate.
To accomplish this, navigate to the Add Liquidity section. By depositing the desired tokens, generate LP tokens. Then, in this area, you may deposit the created LP tokens into the Farm pool.
Finally, click on your selected pool to view data such as the total prizes awarded every day, the annual percentage yield, and so on.
- Dual mining
As the name says, these pools double your earnings when you deposit your liquidity Provider tokens. On deposits, users will get $QUICK and $MATIC tokens.
- Dragon’s syrup pools
Users may deposit their dQUICK tokens in the pools under Dragon’s Syrup to earn various tokens like ELON, MCASH, ALN, and WATCH.
Users may purchase crypto assets using their bank account and local cash using the Buy option. This functionality is powered by Transak and MoonPay. You will be unable to acquire crypto assets using certain currencies such as INR, USD, and so on.
However, the site enables you to purchase a variety of crypto assets like MATIC, USDT, and USDC (see screenshot below).
Additionally, it is conceivable that interested individuals may be required to pass a profile verification process in order to participate in this activity.
FAQs About QuickSwap
How Do You Purchase QuickSwap Tokens?
Approximately all major and minor cryptocurrency exchanges have already listed the QUICK token. If you wish to purchase QUICK tokens, you may do so through Binance, Bitmart, WazirX, Coinbase, or KuCoin, among others.
Why Should I Use QuickSwap?
Due to the Matic network’s advantage over Ethereum in terms of speed and cost, trading tokens and yield farming on QuickSwap is incredibly cost-effective. As additional coins become available via the decentralized exchange, we may anticipate higher platform use.
This, however, will not be an issue with QuickSwap. The renowned automated market maker takes use of layer-2 scaling methods to ensure that transaction speed and cost do not significantly rise as network activity increases.
Additionally, users may make passive revenue using the QUICK token. Users will get LP tokens and a share of transaction fees if they become a liquidity provider on QuickSwap. While QuickSwap’s scaling methods are similar to those used by many other AMMs, the gas prices associated with unstaking and earning rewards are far cheaper than those associated with other AMMs on Ethereum.
How Does QuickSwap Make Money?
QuickSwap is an open-source Defi platform that is not reliant on user fees. Users that provide liquidity earn a fee of 0.3% on any swap executed through a liquidity pool.
How does QuickSwap make money?
Since its introduction in February 2021, QuickSwap has drawn unprecedented levels of liquidity. QuickSwap has grown to be one of the most popular automated market makers (AMMs) accessible due to the lightning-fast and ultra-low-cost transactions provided by Polygon. Additionally, CoinGecko listed QuickSwap as one of the top 30 trending projects in April 2021.
With an ever-growing choice of token pairs and liquidity pools, along with a low-fee, ultra-fast AMM, QuickSwap is poised to compete with some of the industry’s most prominent brands in decentralized finance (DeFi) and layer-2 scaling solutions. Additionally, as a result of some very enticing pricing, QuickSwap, and the QUICK token are gaining traction!