QuickSwap is an Automated Market Marker on the Polygon Network. It’s a copy of Uniswap and offers the same liquidity pool model. Users add pairs of tokens to liquidity pools and earn transaction fees from others who swap their tokens using the pools.
QuickSwap has seen popularity due to the speed and low fees offered by the Polygon Network. It’s also compatible with the Ethereum blockchain, allowing you to swap ERC-20 tokens. There is, however, always the risk of impermanent loss.
QuickSwap’s cryptocurrency is called QUICK. You can easily buy and sell it on Binance. You can also swap other tokens for QUICK using QuickSwap’s liquidity pools.
What is QuickSwap?
What is Polygon (MATIC)?
Why use QuickSwap and not Uniswap?
How does QuickSwap work?
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.
x * y = k
What is impermanent loss?
Impermanent loss is a possible risk for anyone who provides liquidity to a liquidity pool. If the price of the tokens changes relative to when you add them, you’ll end up with less dollar value when you withdraw. Note that this occurs if the prices rise or fall. The loss is impermanent as it’s only realized once you remove your funds from the liquidity pool.
How does QuickSwap make money?
Unlike a centralized exchange, QuickSwap doesn’t make money by charging fees to users. Liquidity providers are actually the ones who earn transaction fees. Just like Uniswap, there is a 0.3% fee on any swap made using a liquidity pool. You can claim earned transaction fees at any time and even reinvest them. You will receive fees equal to your proportion of the overall liquidity.
How to use QuickSwap
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.
The QuickSwap (QUICK) token
How to buy QUICK on Binance
In our example, we’ll use QUICK/BUSD. On the right side of the screen, enter the total amount you want to purchase in BUSD. The quickest way to purchase QUICK is with a market order on the spot market. This way, you’ll be able to buy QUICK at the current market price.
Finally, click [Buy QUICK] to place your order and confirm the details.
How to sell QUICK on Binance
The quickest option is to sell your QUICK for the current market price with a market order. On the right side of the screen, make sure you are on the [Spot] tab and have selected [Market] for your order type. Enter the amount of QUICK you want to sell and press the [Sell Quick] button.
QuickSwap provides another option for trading tokens in a decentralized manner. With a Polygon address and some MATIC token, you can trade ERC-20 tokens cheaply and quickly compared to Uniswap or another Ethereum network AMM. However, this attractive feature might be time-limited. With the upcoming release of Ethereum 2.0, QuickSwap might lose some of its competitiveness in fees and speed.