Decentralized exchanges, popularly known as DEXs, operate differently than centralized exchanges (CEXs) in the sense that DEXs rely on smart contracts to complete transactions, while CEXs use order books.
Most DEXs are built on the Ethereum blockchain. However, due to high network fees, some developers have shifted their focus to other chains like Polygon, which hosts one of the largest decentralized exchanges called QuickSwap. In this guide, we will explain everything you need to know about QuickSwap, from how it works and the features that make it special.
QuickSwap is an AMM (Automated Market maker) that lets crypto users exchange tokens created on Polygon and Ethereum. As mentioned earlier, the platform is built on Polygon, an Ethereum layer-2 network. This means transactions on QuickSwap are fast and attract low gas fees.
You can trade over 100 ERC-20 tokens through QuickSwap. Note that these crypto assets can easily be transferred to Polygon through Polygon Bridge.
QuickSwap has its native token known as QUICK. Launched in March 2021, QUICK has a market valuation of $37.89 million as of July 20, 2023, according to data from CoinGecko.
QuickSwap’s Origin and Its Team
QuickSwap began its operations in late 2020. And as a decentralized platform, it is governed by the community. All QUICK holders have the right to vote on various proposals that influence QuickSwap’s direction.
QuickSwap is a fork of Ethereum-based DEX Uniswap, which is known for processing millions in daily trading volume.
By adopting Uniswap’s code, QuickSwap has been able to provide a top-notch user experience through a proven automated market-making system.
The team behind QuickSwap is made up of crypto gurus, including Nick Mudge, Sameep Singhania, and Roc Zacharias. The there co-founders partnered with Matic Foundation to offer them advisory and technical support to ensure QuickSwap is successful.
How QuickSwap Works
As stated before, QuickSwap offers a platform for users to trade various tokens. Swapping your tokens on this DEX is simple. First, you need to select the tokens to be swapped, enter the amount you wish to swap and let the protocol calculate the quantity of the other token you will receive. After authorizing the swap transaction, the new tokens will be available in your wallet within a few minutes.
But QuickSwap is not just a token-swapping platform. It offers other services, like farming and staking, which we will discuss in the section below.
This is the primary feature of QuickSwap. You don’t need to deposit your tokens in the DEX to swap them like in the case of CEXs. Instead, you can exchange crypto assets by connecting your decentralized wallet to the platform.
With over 180 liquidity pools, QuickSwap allows investors to provide liquidity in exchange for rewards distributed in the form of QUICK. Anyone can be a QuickSwap liquidity provider. Once you deposit digital assets in a particular pool, you will immediately receive pool tokens equivalent to the deposited amount.
When you become QuickSwap’s liquidity provider, you can earn up to 14% Annual Percentage Yield. You will also receive 0.25% of the 0.3% fee imposed by QuickSwap. However, to realize substantial gains, you need to provide huge liquidity.
This is a staking pool that only supports QUICK tokens. Stakers earn 0.4% of the trading fees. They can also generate passive income by staking their tokens in Syrup Pools on QuickSwap.
Buy Cryptocurrencies With Fiat
Quickwap is one of the few DEXs that lets users purchase cryptocurrencies using their credit cards, Apple Pay, and bank transfers. This feature plays a huge role in making Web3 accessible as possible.
Advantages and Disadvantages of QuickSwap
- No Know-Your-Customer information is required.
- Offers quick and cheap transactions.
- Avails multiple ERC tokens for swapping.
- Allows crypto users to earn passively through providing liquidity and staking.
- Posses impermanent loss risk to investors in case crypto prices decline.
- Since no KYC information is provided, QuickSwap can be used by criminals to make illegal transactions.
The high gas fees and network congestion experienced on Ethereum make it challenging to carry out token swaps, but thanks to QuickSwap, you can now conduct transactions cheaply and fast.
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