At the time of writing on 11 July, the price of QuickSwap ($QUICK) has seen a rally of 28.76% in the past day and is currently trending on CoinMarketCap. So just what is QuickSwap?
QuickSwap tags itself as a next generation Layer-2 decentralised exchange and Automated Market Maker (AMM). Built on the Polygon network, it allows users to swap ERC-20 tokens.
According to its official website, QuickSwap is the leading DEX on Polygon PoS, Polygon zkEVM, and Dogechain that is fully decentralised and community-driven. It offers a comprehensive suite of DeFi products called the DragonFi ecosystem. As a high-performing, cost-efficient DeFi platform, it pioneers the role in onboarding new users and capital to the broader Polygon ecosystem.
This L2 DEX was founded by Sameep Singhania in 2020. Keeping in mind of Uniswap’s success, the team behind QuickSwap decided to fork the code behind Uniswap without changing the underlying code. As a result, the QuickSwap team built additional features on top of it.
This includes things such as the Dragon Lair, where users can earn protocol fees by staking their $QUICK tokens and adding Limit Order support. Another one is the Dragon Syrup, where stakers of dQUICK can get additional yields from projects that are traded on QuickSwap.
By building on top of the Polygon L2 scaling solution, QuickSwap benefited from next-to-zero transaction fees, achieving up to 65,000 transactions per second. Its other area of focus was in developing user interfaces that would make transacting on Layer-2 easier to use for non-technical users in the DeFi space.
How does QuickSwap work?
QuickSwap’s DEX infrastructure consists of things like liquidity pools, automated market maker, and token swapping.
It utilises an AMM model to provide token pools for users to swap, stake and supply liquidity for token assets. This model also determines the asset prices and provides instant liquidity
By functioning as an automated DeFi liquidity protocol, QuickSwap allows users to add token pairs to the liquidity pool and earn transaction fees from those who use the pool for swapping tokens. Any combination of ERC-20 tokens can be seamlessly exchanged without an order book as long as there is a liquidity pool for it.
While the QuickSwap DEX lets its users perform DeFi actions such as swapping, LPing, staking, and farming to earn rewards, it also comes with some other features that sets it apart. This includes QuickPerps (a decentralised Perpetual Exchange), a Gamma V3 integration (enabling active liquidity management), dTWAP/limit orders, and an on-site Gaming Hub built by VersaGames.
In March 2022, the QuickSwap community voted for a 1:1000 token split. Since then, there has been the existence of two QUICK tokens which are currently in circulation — old $QUICK and new $QUICK. Since the transition is expected to take time, the community has not outlined a deadline for converting $QUICK.
Recently, on 10 July 2023, crypto exchange Binance announced that it will support the $QUICK token swap and redenomination plan. According to QuickSwap’s official tweet, the team is working to equalise the 1:1000 ratio between old and new $QUICK. It’s also on its path to get Binance to get new $QUICK listed. This native token will be available for trading & deposits starting soon.
At the time of writing, $QUICK is trading at $81.49 – up 28.76% in the past day, and 31.64% in the last week.
What is QuickSwap used for?
QuickSwap boasts several features. Users can swap tokens and trade any combination of ERC-20 tokens permissionless, with ease. It offers a simple way to buy crypto with fiat, like through Apple Pay, credit card, bank transfer and more. Its supply liquidity also allows users to earn 0.25% fee on trades proportional to their share of the pool. In its single staking pool feature called the Dragon Lair, users can take their $QUICK to receive dQUICK, and earn their share of .04% of all trading fees.
Is QuickSwap on the Polygon network?
QuickSwap’s inception was as a fork on Uniswap. This runs on the Polygon network, which is a Layer-2 scaling solution for Ethereum. Being built on Polygon, it emerged as a quick, affordable and Ethereum-compatible alternative to Uniswap.
As a result, QuickSwap users enjoy the security benefit of Uniswap’s audited code while also gaining from the high-speed transactions and near-zero gas fees offered by the Polygon network.
Is QuickSwap token a good investment?
$QUICK is the native utility token of QuickSwap, which gives users governance rights over the protocol. In the last 24 hours, the token rose dramatically by nearly 30% as it enjoyed a trade in the green side of its charts. However, whether it’s a good investment is for you to decide. Always remember to do your own research and never invest more that you can afford to lose.