QuickSwap is literally a clone of Uniswap, which are financial protocols, completely decentralized, used to exchange cryptocurrencies. A currency exchange is called a "swap". Currently, QuickSwap's average weekly transaction volume is $40 million. This makes it a very small decentralized exchange compared to Uniswap and its several billion weekly. Investors use QuickSwap because of its usefulness in decentralized finance (DeFi) and its incredibly low fees.
You may know Uniswap, the swap tool for decentralized finance on Ethereum. QuickSwap is its counterpart on the Polygon blockchain. Indeed, decentralized finance is today driven by three blockchains supporting decentralized exchanges. On one side you have the Ethereum blockchain and its ERC-20 protocol allowing the creation of tokens on its chain. The Binance Smart Chain based on the BNB and the BEP-20 protocol. Since the Ethereum network is congested and transaction fees have become very important, new host blockchain offers lighter protocols. It is now, the MATIC blockchain on the Polygon network that offers its services of 'brige' a bridge to fluidify the Ethreum network. Polygon is what we call a 'sidechain', that is to say a blockchain parallel to the Ethereum network. A sidechain offers interoperability features while providing scalability to existing public blockchains.
Operation âïž
QuickSwap is a set of computer programs that run on the Polygon blockchain and allow tokens to be exchanged in a decentralized way. Decentralized here means that it works without any authority. This service is self-powered by its users, it is called an 'Automated Market Maker'. QuickSwap should be visualized as an entity where lenders place cryptocurrency liquidity on the platform for other users to come and trade.
Individuals and bots; called "liquidity providers"; deposit liquidity to the exchange by adding a pair of tokens to a smart contract that can be bought and sold by other users. In return, the liquidity providers receive a percentage of the trading fees earned for that pair of tokens. For each trade, a certain number of tokens are removed from the pool for an amount of the other token, thus changing the price. No fee is required to list the tokens, which allows access to a large amount of Ethereum tokens. In addition, no registration is required for users.
Traders can trade Ethereum tokens on QuickSwap without having to trust anyone with their funds. Meanwhile, anyone can lend their cryptocurrency to pools called "liquidity pools". In exchange for contributing money to these pools, lenders receive commissions.
It's a win-win situation for everyone.
If you are looking to avoid paying the exorbitant fees of the Ethereum network, the Polygon sidechain is for you. If you are looking for tokens based on the Binance Smart Chain, you will undoubtedly find your happiness on PancakeSwap but the briges do not yet allow the passage of tokens from BSC to Polygon. By providing liquidity, you will be remunerated to feed a "pool" on the service.
Use đ±
Connection đ
Using QuickSwap is very simple. Just go to quickswap.exchange. Then connect your MATIC wallet with MetaMask for example. You can also use the Wallet Connect of TrustWallet depending on your preferences. Sign the certificate and your wallet is ready for use on QuickSwap.
â ïž If you are using QuickSwap with MetaMask, you will need to configure the Polygon network beforehand. Tuto here.
Choice of the pair đ”/đ¶
On this step you will have to choose which currencies you want to exchange.
In this example, we deposit ETH against CEL. Initially, you can deposit a "base" like MATIC that is the governance currency of the blockchain. Here, it will be Ethereum thanks to the sidechain. Then, exchange them for any token already present in a liquidity pool. In case you want to sell a token against another one, simply use the same process by reversing the values.
Anyone can add a token on Quickswap. It is very important to check the address of the tokens you swap.
Confirmation â
A summary of the service charges will appear. Confirm the swap, then validate the transaction. A window opens to sign the swap. Check that you have enough funds in MATIC to cover the Polygon network fees, which are nevertheless very low compared to the Ethereum or BSC network. Wait a few seconds and it's done, you have exchanged ETH for Celsius Token.
The "slippage tolerance" is the difference between the expected price of a transaction and the price at which it is executed. This is the difference you are willing to pay if the price of the currency changes while your transaction is being processed. On very volatile currencies, it may be worthwhile to select a slippage rate of 5% or more.
Adding liquidity đ°
To add a crypto, that you own or have created, you need to go to the "Pool" tab and then the "Add Liquidity" button. Then import the MATIC equivalence of your token to create the pool and allow users to trade the newly listed liquidity. Depending on the price of the token, you will have to bring for example 5 MATIC for 1 of Celsius tokens. Note that the difference will be automatically calculated by the service.
In case users swap the crypto you have deposited, you are remunerated according to the fees charged on the transactions that took place thanks to your token contribution.
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