QuickSwap is a fork of Uniswap V2 and the biggest permissionless decentralized exchange (DEX) on the Polygon sidechain. It allows users to swap ERC-20 tokens and earn passive income, offering fast transaction speeds and low gas fees compared to similar DEXes on Ethereum.
Its features include limit orders, yield farming, and a governance token (QUICK) that users can stake on the exchange.
Launched in October 2020 on the Polygon network, QuickSwap was founded by Nick Mudge and Sameep Singhania and advised by the Polygon foundation.
In a context of a rising adoption of cryptocurrencies, Ethereum Mainnet was struggling with high gas fees and slower transaction times, which made Decentralized Finance (DeFi) protocols on Mainnet difficult to access for many people. In response to these scaling issues, the QuickSwap team deployed their fork of Uniswap’s open source code base on the Polygon sidechain. By launching on Polygon, QuickSwap delivered a faster and more affordable Decentralized Exchange (DEX), while remaining compatible with the Ethereum ecosystem.
The exchange is the main feature of the protocol. QuickSwap allows its users to swap ERC-20 tokens in a decentralized automated market maker (AMM).
To use the exchange, traders select input and output tokens, specify an input amount, and the protocol calculates how much they will receive based on the underlying liquidity pool's reserves.
Using QuickSwap’s Pool feature, users can provide liquidity to receive liquidity pool (LP) tokens representing a receipt of their selected pool's share. LP tokens collect fees from swaps occurring in the corresponding pair and can also have other use cases outside of the protocol. LP tokens are required when the provider wishes to withdraw his assets from the pool. Each trade involves a 0.3% fee from which 0.25% rewards liquidity providers with the same tokens of the pools they contribute.
In-app analytics gives a historical overview of volume, available liquidity, occurring transactions, and price movements. Data is available for the whole exchange or individual tokens and pairs.
Inspired by Aave Flash Loans, Flash Swaps technology lets users borrow the whole reserves of any ERC20 token at no upfront cost and execute desired logic as long as they repay their loan plus a small fee within the same block.
To incentivize users to contribute to the platform's liquidity, liquidity providers can stake their LP tokens in the LP mining section to receive dQUICK rewards. Rewards are proportional to the percentage of the pool their liquidity occupies.
Dragon's Lair is the mechanism of staking QUICK in a pool to earn a share of protocol revenues. QuickSwap dedicates 0.04% of its trading volume value to buy QUICK on the market and distribute it to the Dragon's Lair pool. By depositing QUICKs in the pool, users obtain dQUICKs (dragon's QUICKs) at a variable rate, representing their pool's share.
As the exchange collects swap fees, the pool's QUICK balance accrues over time, and dQUICK's rate increases relative to QUICK. Once dQUICK is withdrawn, the protocol burns it, and the user receives more QUICKs than when they entered.
Instead of depositing into Dragon's Lair, Dragon's Syrup allows QUICK holders to yield other tokens from participating projects traded on QuickSwap.
When users stake their QUICK into desired Syrup's pools, they will earn a share of the reward tokens but won't be eligible for protocol trading fees profits.
QuickSwap has stated publicly that they don’t do due-diligence to verify the legitimacy of partner protocols giving out tokens using Dragon’s Syrup, so users should use this feature with caution and do plenty of research before entering a Syrup pool.
This initiative resulted from a collaboration between QuickSwap and Starter, a community fundraising platform. Users that provide liquidity to the START-QUICK pool on QuickSwap will be able to purchase IDO tokens with either QUICK, MATIC, or USDC.
Powered by Gelato Network, the limit order feature gives traders the option to set their orders in advance, similar to how things are done on centralized exchanges. The interface lets you choose the two assets to be swapped and an execution price.
Dual Mining is another way for users to earn yield on liquidity provided. For select pools, rewards are paid in two digital currencies instead of one.
Introduced in November 2021, this feature allows users to buy MATIC on Polygon wallets directly from their debit/credit card or Apple Pay. Relying on Transak and MoonPay infrastructures, United States residents must perform some "Know Your Customer (KYC)" formalities to use this onramp, such as providing an identification document.
Holders of QUICK and dQUICK are able to vote on community proposals using Snapshot.
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