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What Is QuickSwap? And How To Use QuickSwap

I guess you know the concept of DeFi (Decentralized Finance) right? The QuickSwap are hugely popular in DeFi like Automated Market Makers (AMM). The Uniswap platform has become a standard across various blockchains and Layer 2 platforms. QuickSwap offers the same functionality as Uniswap, but it is based on the Polygon network instead of Ethereum. Even though QuickSwap is a fork of Uniswap, the key contrast between the two have led to it being favored by some users. 

Also Read: A Complete Overview Of Lunarcrush

What is QuickSwap?

QuickSwap developed by Nick Mudge and Sameep Singhania on the Polygon blockchain platform, which is a fork of Uniswap, which offers a Decentralized Exchange (DEX) occurrence using an AMM (Automated Market Maker) platform for users to exchange the tokens. QuickSwap has no order book, as users trade from pools of tokens, which is known as liquidity pools.  

The QuickSwap users can bridge ERC-20 tokens from Ethereum to Polygon and trade any pair via QuickSwap, in case there is a liquidity pool for it. Any user can start a new liquidity pool by providing a token pair to earn transaction fees from other users. 

The outer look, feel, and experience of QuickSwap are the same as the Uniswap; thus, the users can trade their coins without signing up or completing any KYC (Know Your Customer) processes. All the users want is a wallet to connect to the platform and MATIC to pay your transaction fees. QuickSwap is an open-source platform that uses audited code from Uniswap to provide it with a level of trust and security. 

What is Polygon (MATIC)?

MATIC, currently named Polygon , is an infrastructure for creating Ethereum compatible networks, that is blockchain which interacts with one another, creating a layer 2 ecosystem of interconnected blockchains. The Polygon platform is the project’s standard side chain which acts as a proof of stake consensus mechanism. 

The vogue of the Polygon network comes from its speed as a scaling solution and cheap rates, the transaction fees are paid in MATIC tokens. As the network is amicable with the Ethereum Virtual Machine, developers can fork existing DApps (Decentralized Applications) such as Uniswap onto the side chain. 

Why is QuickSwap Better than Uniswap? 

Many QuickSwap users prefer Polygon for its rapid transaction times and extremely low fees. Liquidity providers and swappers relish Uniswap’s audited code with the pros of the ERC-20 supporting Polygon Network. One vital pro is being able to trade ERC-20 tokens with a straightforward bridge, avoiding the higher fees of Ethereum. Therefore, QuickSwap, provides an excellent balance between Ethereum compatibility, ease of use, and affordability. 

Also Read: What Are The Reasons To Buy Litentry Coins?

How Does the QuickSwap Platform Work? 

As we discussed, the QuickSwap platform uses the AMM model to create liquidity pools of tokens which users can access to swap. Users do not trade as makers or takers but instead interact with a smart contract. Any user can start providing liquidity by depositing a pair of coins in equal value. 

As revert, the liquidity providers receive LP (Liquidity Pool) tokens that act as a receipt for their share of the pool. At the time of the reclaiming the tokens, these LP tokens are burnt. Users can also provide them to a third party to use in yield farming, where your fees are constantly reinvested in the pool to compound your interest. 

AMM model of QuickSwap rewards liquidity providers with a 0.3% fee shared proportionally based on the liquidity provided. The tokens’ prices are not determined via an order book but through a formula which is famous as the Constant Product Market Maker. 

Let us assume the ETH/DAI liquidity pool for instance, we will refer to ETH as X and DAI as Y, with a constant Product Market Maker formula, X and Y are multiplied together to create a constant, K, that can not change. 

In this case, the liquidity pool will offer you a conversion rate, 3000 DAI (Y) for 1 ETH (X). When you supply the 3000 DAI to the pool and remove 1 ETH, it will have a greater supply of ETH to rise as K is constant. Shortly, the users are using your DAI to buy ETH. As more ETH leaves the pool, its price in comparison to DAI rises. The following graph demonstrates the relation between the quantities of the two tokens. 

how to use quickswap

How to Use QuickSwap: 

You can use QuickSwap via desktop internet browser or your mobile device, but make sure the link is as we mentioned; “quickswap.exchange” so that you can exchange the digital coins easily for a fee from one of the liquidity pools. 

  • Click to quickswap.exchane in your desktop or mobile browser. 
  • Now, connect your wallet, you will need to use either a desktop browser extension wallet or a mobile wallet application. MetaMask and Trust Wallet are both suitable options, and your wallet should also support the Polygon network. 
  • Ensure that you are on the (Swap) tab to start exchanging tokens. 
  • Select the token you would like to swap from and the token you would like to receive. In the above example, we are swapping MATIC for PBNB. 

how to use quickswap

  • Press (Swap)
  • The final step is to preview the transaction in the pop-up message and confirm the request in your wallet. 

Also Read: What Is A Venly Wallet? And How To Use It?

The Final Thoughts 

QuickSwap provides various options for trading tokens in a decentralized manner. With a Polygon address and some MATIC token, you can trade ERC-20 tokens at a normal rate and faster compared to Uniswap or other Ethereum network AMM. But, the attractive attribute might be time-limited, with the upcoming release of Ethereum 2.0, QuickSwap might lose some of its competitiveness in fees and speed. 

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