16 days ago 6 min read

Review of QuickSwap V3: Excellent Layer 2 DEX, New Technology

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Table of Contents

A commonality among various Layer 2 blockchains and systems is the Uniswap paradigm. The functionality of QuickSwap V3 is same to that of Uniswap, however it is built on the Polygon network as opposed to Ethereum. Although QuickSwap V3 is a fork of Uniswap, its primary distinction from the original has helped some users to favor it.

What Is QuickSwap V3?

On the Polygon Network, QuickSwap is a decentralized exchange that offers quicker and less expensive transactions. With the integration of Ethereum's upgradeable smart contracts, its automated market maker eliminates the need for middlemen. Decentralization, censorship resistance, and security are prioritized in the exchange, which is built on open-source software. When compared to Ethereum, its gas costs are incredibly minimal, and transactions are executed quickly and simply.

With more than 96% of the tokens transferred to the community, QuickSwap debuts in May 2021.

All ERC-20 tokens used on Polygon are supported by QuickSwap, including wrapped tokens like wrapped Bitcoin.

The first QuickSwap V3 has been implemented on Dogechain, and we have now launched it on Polygon. In June 2022, the community elected to secure a proprietary license to operate Algebra's V3 centralized liquidity model on QuickSwap's DEX.

Because of its incredibly low costs and quick transaction times, Polygon is preferred by many users. The audited token from Uniswap offers liquidity providers and swaps the benefits of the ERC-20 Supported Polygon Network. Trading ERC-20 tokens using a straightforward bridge and avoiding increased Ethereum fees is one noteworthy advantage. As a result, QuickSwap strikes an excellent mix between price, usability, and Ethereum compatibility.

Project Crew, Backers, and Collaborators

Project Crew

Nick Mudge: Nick is a web developer, security auditor, code reviewer, and Ethereum Smart Contract programmer with more than six years of blockchain development expertise.

Sameep Singhania:the Co-Founder and Director of the blockchain consulting and development company Ginete Technologies.

Backers

Due to Fair Launch, the project has no investors.

Collaborators

Lunar Digital Assets: A blockchain marketing and consultancy company, Lunar Digital Assets.

The QuickSwap team has received financial assistance from the Polygon Foundation, which also closely helps them technically.

Starter: IDO platform, which enables funding for projects. Users must use the LP token of the START/QUICK pair and projects sponsored by QUICK in this combination to take part in IDO.

How does QuickSwap function?

Forked from Uniswap V3 on Polygon, QuickSwap V3 is an Automatic Market Maker (AMM) that adds a centralized liquidity AMM paradigm. AMM's new centralized liquidity strategy allots liquidity within a specific price range. Liquidity was formerly spread uniformly over the price line from 0 to infinity in QuickSwap. Liquidity providers (LPs) can concentrate their funds on smaller price ranges or ticks with the help of V3. As a result, traders will have greater liquidity, and LPs will be able to generate greater profits with less cash. Nevertheless, this also makes short-term losses more likely because fluctuating asset prices can push position liquidity out of bounds and make it no longer lucrative.

Key Characteristics

Swap: Trade any combination of ERC-20 tokens easily and without requiring a permission.

Earn dQUICK: Deposit your LP tokens to receive more benefits.

Buy Crypto with Fiat: Easy way to make a purchase with Apple Pay, a credit card, a bank transfer, and more.

Supply Liquidity: Get 0.25% commission on trades based on your pool share.

Farm: You may also use QuickSwap's V3 to farm your LP tokens. For this couple to take part in the farm, you must supply LP.

Dragon’s Lair: A single staking pool for QUICK tokens is called Dragon's Lair. Get 0.04% of all trading costs by staking your QUICK to receive dQUICK.

Analytics: Analyze the historical data & insights for QuickSwap V3.

Pros and Cons

QuickSwap V3 vs QuickSwap V2 Differences

First, because the two versions are quite different, be sure you comprehend the essential distinctions between them and how they may effect your liquidity. You might be shocked by the amount of holding ratio required to maintain these adjustments.

  • In V3, LPs can deposit liquidity pairings that fall inside a specific price range.
  • Centralized liquidity means that when the asset trades within the specified price range, the LP will be charged a transaction fee.
  • Each of the following choices are available to the liquidity provider when the LP is outside of the range that the LP has established: "Wait until the price comes back into the range and the LP will refund the original asset" or "Clear liquidity and place a bet" back to another scope."
  • With the same quantity, LP V3 may deliver more depth. As a result, less liquidity will benefit more significantly from trading commissions.
  • LPs create unique price curves based on their personal preferences.
  • Without any rise in gas prices for any liquidity provider, users can trade on the combined liquidity of all separate curves. LPs split the transaction costs based on how much they contributed to the price range (respectively allowed).
  • LP needs to contribute less money than V2 AMM.

The fact that your assets will be converted when prices change is the most significant part of offering liquidity on QuickSwap's V3. Liquidity is turned into less valuable assets when the price ratio declines.

On the other hand, if the price dropped, there would be more volatility and you might now leave the range. To avoid automatically flipping back when the market begins to move in the opposite way, the LP must withdraw liquidity. Also, your token may turn into another asset with a percentage if the price fluctuates within the range.

You may have observed that QuickSwap V3 is unique in some way. It deals with your chosen price range's price range, other ratios, risk, and return.

The V3 model provides LPs with a means of increasing the efficiency of their capital and has rewards that are 10 times greater than those of the V2 model.

Let's look at how QuickSwap V3 functions for swaps, liquidity provisioning, and farming now that you are aware of the main distinctions between the two AMM models.

QUICK Token

The QuickSwap V3 governance token, QUICK, is an ERC-20 token that was introduced in February 2021. Anybody who mines liquidity will be rewarded with 90% of the entire token supply, converting liquidity providers into platform stakeholders. The governance structure of Uniswap and PancakeSwap, two DeFi initiatives, is similar to that of QuickSwap V3. Holders of QUICK can submit proposals and vote on them to improve the platform or add new features.

Key Measures

Name of token: QUICK Token.
Quick ticker.
Blockchain: Polygon and Ethereum.
ERC20 is a token standard.
Contract: 0x831753DD7087CaC61aB5644b308642cc1c33Dc13 (Ethereum), 0x6c28aef8977c9b773996d0e8376d2ee379446f2f (Polygon).
Governance token type.
Supply total: 100,000 QUICK.

Token Distribution

  • Liquidity Mining: 90%
  • UNI Token Holders: 5%
  • Creators & Advisors: 3.25%
  • Polygon Community Fund: 1%
  • Marketing: 0.75%

Token Sales

There is no token sale held by the project. As you can see, 90% of the QUICK Tokens go toward providing liquidity for Quickswap, and the remaining tokens are distributed to the Polygon community, the creators of the original Quickswap, and the UNI Holder Airdrop.

Case for Token Use

  • Governance: Through voting, QUICK holders can take part in platform governance.
  • Quick is utilized as compensation for consumers who supply liquidity for Quickswap V3.

Fee

Instead of the 0.3% transaction cost that QuickSwap V2 charges, V3 offers a dynamic price that increases based on volatility. Rates for V3 are unpredictable and are anticipated to range from 0.15% to 0.1% on average. When merchants switch between stables, the fee will be cheaper. Yet in order to lower the danger of a short-term loss for the LP, swaps between volatile assets will be more expensive. The updated fee distribution indicates, 90% of the proceeds will go to LP, 6.8% to Dragon's Lair (QUICK stakers), 1.7% to the QuickSwap Foundation, and 1.5% to the V3 developers.

Conclusion

The decentralized exchange QuickSwap V3 is reviewed above. Compared to Ethereum-based exchanges like Uniswap, QuickSwap V3 is a decentralized exchange on the Polygon Network that offers faster and less expensive transactions. Forked from Uniswap V3 on Polygon, QuickSwap V3 is an Automatic Market Maker (AMM) that adds a centralized liquidity AMM paradigm. The exchange provides services like trading, earning dQUICK, submitting liquidity, farming, and analytics, and it supports all ERC-20 tokens used on Polygon. The fee structure is dynamic and adapts based on volatility, and the QUICK token is utilized for governance and liquidity mining.

Because of its incredibly low fees and quick transaction times, QuickSwap is gaining popularity. Also, it strikes a decent compromise between price, usability, and Ethereum compatibility. The centralized liquidity AMM model introduced by QuickSwap V3 offers a dynamic fee structure that adapts based on volatility. The exchange supports all ERC-20 tokens deployed on Polygon and includes numerous services including as swapping, liquidity provisioning, farming, and analytics.

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