A Brief Info on QuickSwap

The Polygon DeFi Powerhouse, number one Dex (Decentralized Exchange) on Polygon, I present to QuickSwap.

The Polygon DeFi Powerhouse, number one Dex (Decentralized Exchange) on Polygon, I present to QuickSwap.

You’ve probably used Quickswap if you’ve DeFi on Polygon.

QuickSwap is an Automated Market Maker on Polygon. It’s a fork of Uniswap — the most used DeFi Dex. It’s the Magical Dragon quite different from the Magical Unicorn, Uniswap — the QuickSwap team has chosen to build additional features making it different from Uniswap such as the Dragon Lair: users earn protocol fees by staking their QUICK tokens. And Adding 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.

Quick History and Tokenomics

Launched in October of 2020 few months after Polygon mainnet went live.

QuickSwap launched a fair community governed token structure, with no pre-sales or seed rounds where token hodlers have voting powers and stalkers earn revenue from staking fees.

QuickSwap has an initial total supply of 1,000,000 Quick Tokens and a circulating supply of 327,100 Quick with 3.25% for Founders and Project and the remaining 96.75% for Premined Rewards and Airdrop.

The QuickSwap token: Quick, has two use cases.

1.) Governance: This is done off-chain whereby hodlers connect their wallets to snapshots so they can vote on changes to be made in the protocol.

2.) Staking: Quick stakers earn yields from transactions on the Dex. QuickSwap charges 0.3% fee on all swaps in which 0.25% is moved to liquidity providers, 0.04% to Quick single asset stakers, and 0.01% to QuickSwap foundation.

96.75% of Quick’s total supply was reserved for the QuickSwap community. The distribution is as follows:

• 90% of Quick is allocated to Liquidity Providers over 4 year period

To encourage projects to move to Polygon, QuickSwap has formed an incentive trading pools whereby those who provide liquidity for an incentivized trading pool are rewarded with Quick tokens as well as the swap fees they earn too. This will run for 4 years with token emissions reducing as time goes by, this is to reward early adopters.

• 5% will be airdropped to UNI hodlers

QuickSwap tribute to the Unicorn ecosystem is via this 5% airdrop. An allocation of 5% of Quick’s token will be for liquidity mining through Uniswap pools.

• 3.25% is reserved for team and advisors

QuickSwap is a long-term project and is focused highly on its community, it allocated only 3.25% to its team and advisors. The tokens distributed to QuickSwap’s founding members are vested (it’s a blockchain strategy to stamp market price manipulations fluctuations and keep founders in check through a process by which funds are kept in smart contracts until conditions are met, these conditions are in form of percentile releases of funds over a certain period) to be released slowly over the next 392 days.

• 1% will be airdropped in the future

This 1% was initially intended to be airdropped to users of QuickSwap or Matic stakers and hodlers of Quick, but in the future, the best strategy for effective airdropping will be implemented.

• 0.7% is kept for marketing

This 0.7% was distributed to various members of QuickSwap’s marketing team and industry personalities to encourage them for their efforts and effective participation in QuickSwap’s growth.

QuickSwap is here to stay and has left a mark in the minds of Polygon Defi Degens and crypto as a whole.

How Does QuickSwap Work?

It’s a Decentralized Exchange (DEX) that swaps erc20 tokens (Eth tokens) on Polygon POS. What QuickSwap brings to the table is to solve the user experience in DeFi that has existed in Ethereum: high gas fees and slow transactions.

Just like Uniswap, QuickSwap uses the Automated Market Maker (AMM) model to facilitate trading instead of the orthodox order book model in which order books are created where buyers and sellers post their bids and ask.

In the AMM model, users deposit funds into liquidity pools of the different pairs of assets which will provide liquidity to execute trades.

Unlike the normal Centralized Exchanges, in the Dex Quickswp, anyone can provide liquidity for a token by depositing a pair of coins in equal value, via doing this you become a liquidity provider and in return, you receive LP tokens that act as a receipt of your share in a liquidity pool. This is done by splitting tokens between token pairs associated with their chosen pool.

A liquidity pool is designed to have a 50–50 distribution, so Liquidity Providers have to deposit equal pairs of tokens in the liquidity pool; eg: 1 Quick and $177.23 USDC.

But there is a risk attached to providing liquidity depending on the token; this risk is called Impermanent Loss ( this is simply less dollar value of your token pair at the time of withdrawal than at the time of deposit. It’s called Impermanent because you only realize this at the time of withdrawal except, the value of both token pairs return to their original prices, ie at the time of your deposit) But guess what, the reward can outweigh the risks depending on how tradeable the token pair is. There is a 0.3% fee on any swap on a Liquidity Pool, this is how Liquidity Providers earn transaction fees which can outweigh the impermanent loss.

And also Liquidity Providers can use their LP receipt in yield farming at a third-party platform in return they earn more interest.

I mustn’t fail to mention the Founders of this great Defi Tech: Sameep Singhania is the Co-Founder and Director of Blockchain Development and Nick Mudge is an Ethereum Developer.

QuickSwap is here to stay!

If you enjoyed this write-up and would like to reach out to me. This is my twitter handle — twitter.com/0xSalazar

Please remember to do your research. None of this is financial advice.