Automated Market Makers (AMM) like Uniswap are hugely popular in Decentralized Finance (DeFi) as its model has become a standard across different blockchains and Layer 2 platforms.
QuickSwap provides the same functionality as Uniswap, but is based on the Polygon network instead of ETHereum. Although QuickSwap is a fork of Uniswap, key differences between the two have led to it being favored by some users. Let’s dive into more details as we explore how the Polygon network’s largest DEX works and how to use QuickSwap.
What is QuickSwap Crypto
QuickSwap is a fork of Uniswap developed by Nick Mudge and Sameep Singhania on the Polygon network. It offers a Decentralized Exchange (DEX) experience using an Automated Market Maker (AMM) model for users to exchange tokens. QuickSwap has no order book, as users trade from pools of tokens known as liquidity pools.
Users can bridge ERC-20 tokens from ETHereum to Polygon and trade any pair via QuickSwap, so long as there’s a liquidity pool for it. Anyone can start a new liquidity pool by providing a token pair to earn transaction fees from other users.
The look, feel, and experience of QuickSwap are almost identical to Uniswap. Users can trade their coins without signing up or completing any KYC (Know Your Customer) processes. All you need is a wallet to connect to the platform and MATIC to pay your transaction fees. QuickSwap is also open-source and uses audited code from Uniswap to provide it with a level of trust and security.
How Does QuickSwap Work?
QuickSwap uses the AMM model to create liquidity pools of tokens that users can access to swap. Users don't trade as makers or takers but instead interact with a smart contract. Anyone can start providing liquidity by depositing a pair of coins in equal value.
In return, the liquidity providers receive LP (liquidity pool) tokens that act as a receipt for their share of the pool. These LP tokens are burnt when reclaiming your tokens. You can also provide them to a third party to use in yield farming, where your fees are constantly reinvested in the pool to compound your interest.
QuickSwap’s AMM model rewards liquidity providers with a 0.3% fee shared proportionally based on the liquidity provided. The tokens' prices aren't determined via an order book but through a formula: x * y = k known as the Constant Product Formula.
Why QuickSwap?
Many users prefer Polygon for its quicker transaction times and extremely low fees. Liquidity providers and swappers enjoy Uniswap’s audited code with the advantages of the ERC-20 supporting Polygon Network. One large benefit is being able to trade ERC-20 tokens with a simple bridge, avoiding the higher fees of ETHereum. QuickSwap, therefore, provides a good balance between Ethereum compatibility, ease of use, and affordability.
How to Use QuickSwap
You can access QuickSwap via a desktop internet browser or your mobile device by visiting their official website: quickswap.exchange and make sure to bookmark the link if you are a frequent user to avoid getting phished. You can exchange your coins easily for a fee from one of the liquidity pools.
1. Head to quickswap.exchange in your desktop or mobile browser.
2. Connect your wallet. You’ll need to use either a desktop browser extension wallet or a mobile wallet app. MetaMask and Trust Wallet are both suitable options. Your wallet should also support the Polygon Network.
3. Make sure you’re on the [Swap] tab to start exchanging tokens.
4. Select the token you’d like to swap from and the token you’d like to receive. In this example, we’re swapping MATIC for PBNB.
5. Click [Swap].
6. Preview the transaction in the pop-up window and confirm the request in your wallet.
Closing Thoughts
QuickSwap provides another option for trading tokens in a decentralized manner and has attracted record amounts of liquidity since launching in February 2021. Thanks to the lightning-fast and ultra-low-cost transactions facilitated by Polygon, it has become one of the most popular automated market makers (AMMs) available.
With an ever-expanding range of token pairs and liquidity pools, combined with a low-fee, super-fast AMM, QuickSwap looks set to compete with some of the biggest names in decentralized finance (DeFi) and layer-2 scaling solutions. Learning how to use QuickSwap would benefit you sooner than later if you’re a crypto native!
