DeFi

QuickSwap is a Layer 2 decentralized exchange and automated market maker (AMM) built on the Polygon network.

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 (DeFi) continues to unfold, new opportunities such as 

Uniswap is one of the most innovative DEXs to hit the DeFi movement. However, since it’s built on the Ethereum blockchain, users often experience high gas fees and reduced transaction speed, due to congestion on the network.

 of Uniswap, QuickSwap uses a similar liquidity pool model, however, it’s built on the Polygon network which offers faster transaction speeds at a lower fee.

So, how does QuickSwap work? Is it better than Uniswap? What makes it so popular?

 (AMM) built on the Polygon network. It functions similarly to Uniswap in that users provide liquidity and earn transaction fees when they swap tokens from these liquidity pools.

Launched in 2020, it uses an AMM model where users swap tokens without order books. Since it’s a DEX, 

 (KYC) isn’t needed. To transact, you need only a wallet to connect to the platform, and MATIC tokens to pay for the transaction fees.

QuickSwap offers a bridge between the Ethereum blockchain and Polygon. Thus, users can swap and trade ERC-20 tokens on QuickSwap.

QUICK is the native cryptocurrency for QuickSwap. You can stake it to earn dQUICK or participating tokens, or swap it with another trading pair on QuickSwap.

(formerly Matic Network) is a leading Layer 2 scaling solution for the Ethereum blockchain. It helps improve scalability by providing an infrastructure to build Ethereum-compatible blockchains. Its thriving ecosystem uses a 

 (PoS) mechanism to run the interconnected blockchains.

The crypto community’s widespread acceptance of the Polygon network is due to its lightning-fast transaction speed and low fees compared to Ethereum.

Its native digital currency is MATIC, which is used to pay for transactions on the network.

As a sidechain, the network is compatible with the 

 (EVM). Thus, its code is open source, which allows developers to build scalable, secure and user-friendly 

QuickSwap allows users to swap, stake, farm and supply liquidity. Its look and feel are similar to those of Uniswap. It uses an off-chain governance model to operate. Its distinctive features are:

Using an AMM model, anyone can create a liquidity pool with tokens that other users can swap. In this case, there’s no traditional order book with makers or takers. Rather, users deposit tokens of an equal value, which provide the liquidity needed to swap trading pairs.

Once a user deposits into a liquidity pool, they receive 

 that represent their share of the pool. This way, the liquidity providers can receive a share of the fees earned by the pool.

Liquidity suppliers on QuickSwap earn 0.25% of the fees generated from trades proportional to their share of the pool.

Further, liquidity pool providers can deposit their LP tokens to earn dQUICK tokens as additional rewards through yield farming.

One of the most popular features of QuickSwap is its single-staking product known as 

. Users who want to hold QUICK tokens and provide liquidity for a long time on QuickSwap can stake them in the Dragon’s Lair.

This option provides an easy and safe way to earn rewards on QUICK tokens without the risk of 

, which is common with providing liquidity.

By staking QUICK tokens in the Dragon’s Lair, you can earn dQUICK tokens as rewards, and earn a share of 0.04% of all trading fees on QuickSwap indefinitely.

Users can also earn passive income by staking QUICK tokens in Dragon’s Syrup Pools. These Syrup Pools have a finite number of rewards in participating tokens that expire once the limit is depleted. As most Syrup Pools have run out of rewards for Old QUICK tokens, the Syrup Pools currently accept only New QUICK tokens (more on New QUICK tokens later).

Although there’s a small transaction fee of 0.3%, QuickSwap can exchange ERC-20 tokens quickly and at near-zero gas fees. The swap-generated fees are paid out to the liquidity providers. 

Since KYC isn’t necessary, users need only to have MATIC in their wallets to perform the swap. Hence, QuickSwap offers a permissionless way to exchange tokens with a simple and user-friendly layout similar to that of Uniswap. 

QUICK is a utility-enabled native token of QuickSwap. Currently, there are two types of QUICK — Old QUICK and New QUICK. The two tokens were created following a 1:1000 token split in March 2022 when QuickSwap’s community voted to increase QUICK’s supply.

The Old QUICK token was launched in 2021 as the governance token for QuickSwap, with a total supply of 1 million tokens. The limited supply was intended to create scarcity and appeal to users.

However, despite the growing market cap, the team soon found out that the 

 made QUICK price seem too expensive relative to that of other DEX tokens, such as UNI or 

Consequently, the community increased the max supply of QUICK tokens to the current circulating supply of 1 billion by creating the New QUICK tokens. 

As of April 2022, QUICK token holders can convert Old QUICK to New QUICK. You can still buy or sell Old QUICK on 

, as QuickSwap continues its transition from Old QUICK to New QUICK.

Despite the increased token supply, the use cases of the QUICK token remain largely the same. QUICK’s utilities are:

QuickSwap is stepping up as an alternative to Uniswap for many users, as it’s quick and affordable while being compatible with Ethereum. QuickSwap users can perform faster and cheaper transactions on the Polygon network and enjoy the secure audited code of Uniswap. Users can also easily bridge between Polygon and Ethereum to swap ERC-20 tokens on QuickSwap without having to pay Ethereum’s high gas fees.

1. Open QuickSwap on your web or mobile browser. Always use 

2. On the right-hand side of the home page, click on

 and link a Polygon-supported wallet, such as 

3. Once your wallet is connected, click on 

4. On the resulting page, you'll need to select the token pair you wish to swap. The default token is usually MATIC, but you can change to the tokens you need. In this example, we’ll swap MATIC for SAND tokens as shown below.

6. From the pop-up window, preview and approve the transaction on your wallet. Always make sure you have some MATIC tokens to facilitate the transaction.

QuickSwap is a valid alternative to trading ERC-20 tokens in a decentralized way. Unlike Ethereum-based AMMs, such as Uniswap and Balancer, QuickSwap leverages the Polygon blockchain to provide a faster and cheaper platform for swapping tokens. QUICK token holders can also earn passive income through staking, or providing liquidity to liquidity pools. As the 

 upgrade rolls out, only time will tell whether QuickSwap can retain its competitive advantage over other Ethereum-based AMM DEXs.

What Is QuickSwap – And How Does It Work?

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