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What is QuickSwap? A Guide to the Layer-2 Decentralized Exchange

8 mins
Updated by Maria Petrova
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Decentralized exchanges (DEXs) offer fundamentally different architectures than their centralized counterparts (CEXs). DEXs like Uniswap use smart contracts to execute transactions without the need for third parties. However, those built on Ethereum often experience network congestion and high gas fees, causing delays and high costs. Enter QuickSwap, a DEX that operates on the Polygon network, a layer-2 scaling solution for Ethereum.

QuickSwap is a fork of Uniswap, facilitating lower fees and faster speeds than that available on the Ethereum mainnet. QuickSwap’s token, QUICK, grants users governance rights over the community-driven protocol. So, how does QuickSwap work? And what makes it so unique?

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What is QuickSwap?

QuickSwap is an Automated Market Maker (AMM) that allows users to trade directly from their wallets by interacting with smart contracts on Ethereum and Polygon. The DeFi solution uses automated liquidity pools to reward users.

QuickSwap is a decentralized exchange (DEX) that operates on the Polygon network, a layer-2 altchain built on Ethereum infrastructure. What sets QuickSwap apart is its super fast transaction speed and lower gas fees. The platform boasts a wide range of ERC-20 tokens, and users can easily transfer their assets to the Polygon network using Polygon Bridge. With over 100 tokens available for trading and around 200 liquidity pools, QuickSwap offers diverse investment opportunities. 

Additionally, users can take advantage of farming pools to earn on the proof-of-stake protocol while supplying assets for lending. QuickSwap offers more than 80 farming pools.

QuickSwap introduced its native token QUICK in February 2021. As of July 2023, the DEX has a total value locked of over $108.38 million, as per DappRadar data.

DeFi overview quickswap
QuickSwap DeFi overview: DappRadar

Behind the speed: origin, team, and roadmap 

QuickSwap launched in October 2020. The platform’s community-focused governance structure speaks to the team’s commitment to building a DEX that is accessible to everyone. With 96.75% of the token supply reserved for the community and the remaining 3.25% for the team, token holders carry significant voting power over the network, and stakers are able to earn revenue from trading fees.

QuickSwap’s decision to fork the code behind Uniswap, a battle-tested DEX that processes millions of dollars worth of crypto volume on a daily basis, has proven wise. By utilizing an automated market-making system, QuickSwap can provide a seamless trading experience for its users without changing the underlying code.

In addition to the automated market-making system, QuickSwap boasts innovative features such as Dragon Lair and Dragon Syrup. With Dragon Lair, users are able to earn protocol fees by staking their QUICK tokens, and Dragon Syrup allows stakers of dQUICK to earn additional yields from projects that are traded on QuickSwap.

QuickSwap’s team

The QuickSwap team comprises accomplished crypto professionals, including co-founders Roc Zacharias, Sameep Singhania, and Nick Mudge. Together, the team brings a wealth of knowledge and expertise to the development and success of QuickSwap. The Matic Foundation provides comprehensive technical and advisory support to the QuickSwap team.

How does QuickSwap work?

First and foremost, QuickSwap provides a seamless and user-friendly way to trade ERC-20 tokens. The process of swapping tokens is intuitive: users must select the input and output tokens, specify the input amount, and the protocol will calculate the output token amount. 

With a few clicks, users are able to execute the swap and receive the output token directly into their wallet. QuickSwap goes beyond token swapping, offering additional features such as staking, farming, and providing liquidity.

Features of QuickSwap

QuickSwap features: QuickSwap
QuickSwap features: QuickSwap

Swap tokens

With QuickSwap, you can easily trade any pair of ERC-20 tokens. Additionally, the platform allows you to trade cryptocurrencies directly from your digital wallet without depositing your assets into a centralized exchange. As the only person who can access your assets during a trade, you have full control and protection over your funds.

Liquidity pools and mining

Liquidity mining rewards users who provide liquidity with QUICK tokens. Users can create better swap conditions for themselves and the community by locking more tokens within liquidity pools. Note that QuickSwap also offers distributed management to its users, giving them greater control over their investments.

Did you know? QuickSwap was the first decentralized exchange on the Polygon network to offer liquidity mining incentives to its users? 

With QuickSwap, anyone can become a liquidity provider (LP). To become an LP, you need to deposit equal amounts of each token in the pool, and you’ll receive pool tokens in return. Note that these tokens represent your pool share and can be redeemed for the underlying tokens at any time. 

The QuickSwap liquidity pool’s total liquidity, denoted as (k), is calculated by multiplying the amount of (x) by the amount of (y). The key concept of QuickSwap is that ‘k’ must always remain constant, so the pool’s total liquidity formula is simply (x) multiplied by (y) equals (k).

When someone makes a trade, a 0.3% fee is applied, which is added to the reserves. This fee goes into the liquidity pool, making (k) bigger. The bigger (k) gets, the more valuable the pool becomes. This increase in value benefits liquidity providers (LPs), who can withdraw their share of the pool’s value whenever they want by burning their pool tokens. 

Yield farming

“QuickSwap offers a number of stable-stable pools where LPs can earn over 14% APY & balance risk of Impermanent Loss, as per the DEX’s Twitter announcement.

When you provide liquidity to Quickswap’s trading pairs, you can earn a 0.25% fee on trades proportional to your pool share. This means that the more liquidity you provide, the greater your share of the pool and the more trading commissions you can earn. Furthermore, users can deposit LP tokens to earn additional rewards.

Dragon’s Lair

Dragon’s Lair is a single staking pool for QUICK tokens. You can stake your QUICK to receive dQUICK and earn your share of .04% of all trading fees. In addition to trading, users can earn passive income on QuickSwap by staking their QUICK tokens in Dragon’s Syrup Pools. 

These pools offer a finite number of rewards in participating tokens, which expire once the limit is reached. While most Syrup Pools have exhausted their rewards for old QUICK tokens, users can still participate by staking new QUICK tokens.

Buy crypto with fiat

Quickswap also allows users to purchase crypto directly with Apple Pay, bank transfer & credit cards. This feature is a step towards improved web3 accessibility, helping users purchase crypto assets quickly and easily with their preferred payment method.

Analytics and historical data

Quickswap also offers analytics and historical data for users to learn about the platform’s performance over time. Users can find trends and patterns and better comprehend the price changes of various cryptocurrencies, liquidity pools, and trading pairs. 

Pros and cons of QuickSwap

QuickSwap offers advantages and disadvantages to traders, investors, and other users. 

Pros

  • No registration required
  • Privacy: Users can also expect a high level of privacy from the network. 
  • Swap ERC-20 tokens
  • The network offers lightning speeds
  • Intuitive and user-friendly design
  • Features staking and farming opportunities for users: Earn crypto with liquidity mining
  • QuickSwap users have the option to purchase MATIC tokens directly using their U.S. debit/credit card or Apple Pay, thanks to Transak’s Fiat On-Ramp integration.

Cons

  • Risk of impermanent loss
  • No KYC can be a con for some

QuickSwap token $QUICK

QUICK is the native currency of Quickswap. The Ethereum token runs on the Polygon Network.

quick
QUICK token: BeInCrypto

Tokenomics

The team released the QUICK token without pre-mining or sales to ensure community governance and sustainable growth. 90% of 1 million tokens were allocated to the governance treasury for liquidity mining, with decreasing distribution over the next four years. The daily distribution of 986 tokens is split among applicable pools. However, community governance can decide the treasury token distribution.

Distribution

token distribution
$QUICK token distribution: QuickSwap

The token distribution model of QuickSwap is designed to drive growth and user engagement. It includes 3.25% reserved for founders and advisors, 5% distributed to UNI token holders, and 1% to MATIC stakers. Additionally, 0.75% is allocated to targeted marketing campaigns. QuickSwap’s pools will receive higher rewards in the first year to honor Uniswap and grant its community significant governance power.eks. QUICK holders can be their tokens to create and vote on proposals governing QuickSwap.

QUICK token uses

  • Liquidity provision: Users can provide liquidity and earn fees.
  • Yield farming: Users can earn dQUICK tokens as rewards for yield farming.
  • Governance: Token holders have voting rights.
  • IDO participation: Users can participate in initial DEX offerings.
  • Crypto exchange trading: QUICK tokens can be traded on various crypto exchanges.
  • Staking: Users can stake QUICK tokens for additional rewards via Dragon’s Lair for Old QUICK or Dragon’s Syrup Pools for New QUICK.

Staking QUICK

Users can stake QUICK tokens for additional rewards via Dragon’s Lair. To stake QUICK, click on the “Manage” button and select “Deposit.” If your wallet is already connected to QuickSwap, you can skip this step. Otherwise, you will be prompted to connect a wallet. You can connect MetaMask, the most popular wallet, and other wallets such as Trust Wallet.

  • dQUICK

dQUICK, or Dragon’s Quick, is another token utilized on the QuickSwap platform. It is distributed to users who stake their QUICK tokens in the “Dragon’s Lair” pool. This token rewards borrowing and lending on the platform, and the longer QUICK is staked in the Dragon’s Lair pool, the greater the amount of QUICK returned upon unstaking and withdrawal.

A fast and affordable alternative to Uniswap

While Uniswap, one of the prominent decentralized exchanges, has revolutionized token trading on Ethereum, its high transaction fees coupled with congestion have made it impractical for many users, especially beginner traders. QuickSwap offers a fast and efficient alternative. And, as on open source protocol, QuickSwap, — the Uniswap of layer-2 — also scores well on transparency and accountability. 

Frequently asked questions

What is QuickSwap exchange?

How do I use QuickSwap exchange?

Does QuickSwap require KYC?

What are the benefits of using QuickSwap?

What network is QuickSwap?

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Ayotomiwa Oladotun
Ayotomiwa is a tech writer and marketer focused on blockchain, crypto, DeFi, the metaverse, and NFTs. Ayotomiwa works with a number of emerging tech startups and crypto exchange platforms, including being the content manager for BeArt LLC. Ayotomiwa holds a Bachelor of Engineering from the Federal University of Technology, Akure.
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