What Is QuickSwap and How Does It Work?
Decentralized exchanges (DEXs) are one example of the new possibilities that have arisen as the DeFi paradigm has progressed.
Regarding DEXs, Uniswap is up there with the most cutting-edge ones that have emerged from the DeFi movement.
Since it is based on the Ethereum blockchain, users frequently face high gas fees and slow transaction speeds due to network congestion. There comes QuickSwap.
QuickSwap is a fork of Uniswap that employs the same liquidity pool approach but is based on the Polygon network, allowing faster transaction rates at a cheaper charge.
But how exactly does QuickSwap function? Is this an improvement over Uniswap? Why does it enjoy such widespread acceptance? Well, let’s find out.
What Is QuickSwap?
Polygon’s QuickSwap is a Layer 2 decentralized exchange and automated market maker (AMM). Identical to Uniswap, it allows users to contribute to liquidity pools and profit from transaction fees when token traders exchange them.
Released in 2020, the platform is based on an AMM architecture in which users can trade tokens without needing to order books. Because it is a DEX, KYC isn’t required.
You only need a wallet to connect to the site and MATIC tokens to cover the cost of any transactions.
Connecting the Ethereum blockchain with Polygon is made possible via QuickSwap. As a result, QuickSwap users can now trade and swap ERC-20 tokens.
QuickSwap’s in-house digital currency is known as “QUICK.” QuickSwap is a platform where you may exchange this token for other trading pairs or stake it to gain dQUICK or a participating token.
What Is Polygon?
When it comes to Layer 2 scaling solutions for the Ethereum blockchain, Polygon (previously Matic Network) is at the forefront.
It provides a framework for developing interoperable blockchains with Ethereum, which helps increase scalability. The interconnected blockchains in this blooming ecosystem are maintained using a proof of stake (PoS) method.
The Polygon network has quickly gained favor among cryptocurrency enthusiasts thanks to its low transaction fees and extremely fast transaction times compared to Ethereum.
The network’s native digital currency, MATIC, is used for all exchanges.
The network can function as a “sidechain” alongside the Ethereum blockchain (EVM). As a result, its code is freely available, allowing programmers to create decentralized apps that are scalable, safe, and user-friendly (DApps).
How does QuickSwap work?
QuickSwap is an AMM protocol, a subset of the decentralized exchange category. Liquidity providers, which provide token pairs, take a cut of each trade by automating the process of moving tokens in and out of large liquidity pools to facilitate token swaps.
Although AMMs have been used in conventional banking since the turn of the past century, they have recently gained traction on blockchains due to their potential as long-term, decentralized alternatives to centralized exchanges.
One of the most well-known automated market makers is Uniswap, which facilitates the exchange of tokens on the Ethereum blockchain.
As a result of Ethereum’s space limitations, the blockchain has experienced bottlenecks, prompting the development of scaling solutions like Polygon, upon which QuickSwap is based.
They allow users to transfer tokens to a different blockchain, complete their transactions there, and then transfer the tokens back to Ethereum. Polygon is a major Ethereum scaling solution.
QuickSwap is essentially a color-swapped version of Uniswap; the two have the same interface and functionality. Similar ERC-20 tokens can be used with it.
QuickSwap has more options than Uniswap does, such as limit orders and yield farms, but its liquidity is still significantly lower.
As an ERC-20 token, the QUICK token can be used anywhere Ethereum is accepted. Its holders can stake it to participate in governance and get a share of QuickSwap’s transaction fees. Snapshot, an off-chain voting tool, is used for community governance, and the results are final.
History of Quickswap
QuickSwap was active in October 2020, four months after Polygon mainnet went online. Fair launch, community-focused governance was implemented for the launch, with 96.75 percent of the token supply set aside for the community and 3.25 percent for the team. Pre-sales, private sales, and seed rounds did not occur.
Token holders have a voice in network governance, and staking rewards are tied to the number of tokens staked. The development of the QuickSwap protocol was motivated by a desire to address issues with Ethereum’s user experience, such as the network’s slowness and the size of its transaction fees.
Problems with DeFi’s transaction costs during periods of heavy network use have mostly stopped it from becoming widely available. QuickSwap has developed a solution to this issue by expanding upon the Polygon Layer-2 scalability approach, which enables up to 65,000 transactions per second with nearly $0 transaction fees.
QuickSwap, a platform built on top of Polygon, seeks to level the playing field by addressing the user experience issues of high transaction fees and high transaction times, and by reimagining the way users engage with Decentralized Exchanges and DeFi through the creation of user interfaces that simplify Layer-2 transactions for those without technical expertise.
Taking into account the proven success of Uniswap, which handles daily crypto volumes in the millions of dollars, the QuickSwap team decided to fork Uniswap’s code (which employs an automated market-making system rather than a traditional order-book) without altering the underlying code.
QuickSwap has added features like Dragon Lair, where users can earn protocol fees by staking their QUICK tokens, Limit Order support, and Dragon Syrup, where stakers of dQUICK (QuickSwap’s interest bearing token) can earn additional yields from projects that are traded on QuickSwap, rather than modifying the code behind the forked Decentralized Exchange itself.
Different types of swap mechanisms: QuickSwap and Uniswap
QuickSwap has emerged as an alternative to Uniswap since it is fast, cheap, and compatible with Ethereum. Users of QuickSwap get the benefit of the audited, safe code of Uniswap while doing faster, cheaper transactions on the Polygon network.
The high gas costs on Ethereum can be avoided while exchanging ERC-20 tokens on QuickSwap by using a bridge between Polygon and Ethereum.
QuickSwap is a credible alternate method for conducting decentralized ERC-20 token exchanges. QuickSwap uses the Polygon blockchain to offer a faster and cheaper platform for exchanging tokens than Ethereum-based AMMs like Uniswap and Balancer.
Staking, or contributing liquidity to liquidity pools, is another way for QUICK token holders to generate passive income. Time will tell if QuickSwap can keep its edge over other Ethereum-based AMM DEXs once the Ethereum Merge update is rolled out.
Frequently Asked Questions on Quickswap
What was the highest price for Quickswap?
On May 5th, 2022, the price of Quickswap reached an all-time high of $0.229794. (4 months).
What was the lowest price for Quickswap?
On September 4, 2022, Quickswap hit a new record low price of $0.006623363160. (5 days).
What was the 24 hour trading volume of Quickswap?
Quickswap has a 24 hour volume of $248,908.
Where can I buy or sell Quickswap?
Quickswap can be traded on AscendEX (BitMax), Quickswap (Dogechain), and Quickswap. Quickswap’s most liquid currency pairs include:
- The US dollar (USD).
- The Canadian dollar (CAD).
- The Australian dollar (AUD).
- The British pound (GBP).
- The Indian rupee (INR).
- The Philippine peso (PHP).