The world of finance has changed immensely as the idea of decentralization and blockchain technology are taking over the conventional model of finance. People would just go to all sorts of lengths to introduce new investment schemes in the form of investment bonds, which would continue to grow at a steady rate in the future, equity investment policies, direct investment earning, stock and forex trading, and other types of assortments were being thrown out like it was raining in the street. All of it had its own pros and cons, but in the long run, people were not making as much as they could or should have, given the fact that they were staking their money for such an extended period of time.
Decentralization and blockchain technology have overthrown these conventional practices for investment and have provided people with so many opportunities in this regard which allows them to drum up their own set of rules when it comes to their money in a completely decentralized sense. And the return they get on their original investment is just out of this world. The only difference between the conventional financial models and the decentralized one is the absence of a central command whatsoever; no single person, enterprise, or investment body is given any kind of superiority over the investors.
Introduction
Everyone is in the same boat and thus has the same status as everybody else. Today we will be talking about QuickSwap, which is an automated market marker that rests on the Polygon network and is completely identical to Uniswap, offering an identical liquidity pool model. Users are welcome to stake their tokens into the said liquidity pool and earn a return on their investment along with transaction fees from other people who are swapping their tokens using the same pools.
So in a way, it is a financial service where people get to swap their tokens for something else which has a completely different financial profile than the no one they are holding at the moment. The most elementary benefit of such a transaction is that you get to mitigate the transaction fees involved, which are a standard when it comes to crypto exchanges. QuickSwap is much more popular than Uniswap because of the fact that it offers extreme transaction speed along with the lowest possible fees because of its origin over the Polygon network.
It also happens to be compatible with the blockchain, thus allowing it to swap any ERC-20 tokens that you are holding at the moment, but before you proceed with this, you must know that there is always a risk of permanent loss given the market fluctuations and the very volatility of the crypto industry that unfortunately can’t be crossed from the equation.
QUICK is the native cryptocurrency of the QuickSwap network, which can easily be bought from the Binance crypto exchange; if you don’t want anything to do with the services that the network provides, then you can redirect your attention towards its native crypto token. You can trade it on any crypto exchange of your liking, and you can swap it for other cryptocurrencies using one of the liquidity pools made available by the QuickSwap network.
The decentralized world is changing at a rapid rate, the elements that you were able to ascertain in the past might have become obsolete, or you might not be able to find them all together. This is just how fast the whole thing is progressing, and if you don’t want to be left behind, then it is paramount that you respect the latest updates that are being brought to you and try to learn more about the standards of investing within the decentralized finance.
Significance of QuickSwap
As explained earlier, QuickSwap is nothing but a fork of Uniswap, which rests on the Polygon network instead of using the decentralized finance capabilities of the Ether network. It works as a decentralized exchange that incorporates the use of an automated market maker model where users can approach each other for the sake of swapping their tokens and exchanging in real-time. You would be glad to know that there are no order books at QuickSwap because users interact directly with the pools that are known as the liquidity pools.
Now you might be thinking that if QuickSwap is indeed present on the Polygon network, then what about the ERC-20 tokens, which can only be traded on Ether? You can bridge these tokens from Ether directly to Polygon, and after it has been done, you can trade whatever pair you like using QuickSwap, given the fact that a liquidity pool is present for that particular pair at the moment. If there isn’t a liquidity pool present for that particular pair at the moment, then it can’t be traded. You have the authority to initiate a new liquidity pool by making a token pair available for the sake of earning transaction fees from the other users involved in the process.
You would find that the user interface, features along with the very settings of QuickSwap, both on mobile and desktop, are the same as Uniswap. You don’t have to complete a ‘know your customer’ check for the sake of trading your tokens which really provides you with an anonymity edge; it is something that decentralization in general stands for. But you have to have a wallet for the sake of making a swap because you need to connect your wallet to the platform for the sake of receiving the tokens along with paying the transaction fees that you owe to the platform in question.
The whole idea behind QuickSwap is completely open-source, which makes it even more favorable than any of its competitors and it utilizes audited code directly imported from Uniswap so that the whole platform has a certain level of trust and security sparkling all around.
QuickSwap and Polygon Network
Because praising the whole aficionados of QuickSwap network residing on the Polygon network, it is important to discuss the significance of what Polygon is and how it is adding to the overall stability and versatility of QuickSwap.
Polygon is a set of tools that can be used for the sake of developing an interconnected and verily compatible blockchain network; you can either create one or multiple such networks which would be able to interact with each other without any delay or possible interruption. This will create a layer two infrastructure of these strongly knitted and interconnected blockchain network media. Polygon network, on the other hand, works as an official side chain of the whole project, and it runs on a proof of stake consensus mechanism, which means that users would have to stake in a particular amount of crypto tokens that are native to the network for the sake of getting certain privileges among other users and being able to earn rewards or considered as a voting head over to the government’s board.
Polygon network is extremely popular among decentralized branches and networks because of its speed and agility; plus, it does have a highly scalable infrastructure which means that you would be able to either build up your business or tone it down a bit depending on your overall means in a matter of seconds.
On the other hand, it also features some of the most reasonable and cheap transaction fees that no other network out there does. Polygon network in itself is fully compatible as an ‘Ether virtual machine’ which means that you can run any decentralized app or project which you had either working or getting developed over the Ether blockchain medium.
This adds to the overall interoperability as well as the functionality of the Polygon network spanning its use case not only through the blockchain competitors but also among the decentralized crypto exchanges out there.
QuickSwap vs. Uniswap
The automated market makers have become extremely popular within the crypto market, and when it comes to swapping tokens with each other, users just like to approach Uniswap blindfolded; that is the level of trust people have for this specific service.
QuickSwap, on the other hand, proposes the same standards as Uniswap but with a certain twist; it is not based on Ether but is based on the Polygon network, which allows for higher transaction throughput and lesser processing time as well. You can say that QuickSwap works as a fork for Uniswap, but at the same time, there are multiple differences between the service provided, which have made QuickSwap a preferable choice among the users working for swap options regarding their crypto tokens.
With all this detailed investigation and portrayal of specs regarding QuickSwap, you might be wondering if it is a more plausible option to go with rather than using the Uniswap? This argument is open for debate but should you choose to move with QuickSwap, the number one reason to do so is its existence over the Polygon network; this network is known for instant transaction times and very low transaction fees as compared to multiple competitors who are providing the same service with less convenience and more sanctions imposed on the end-users.
The auditing code of QuickSwap is another thing to feel jolly for because this way, you know that the transaction that you have just made or the swap which you were able to become an active part of has been verified and cross-checked multiple times through the validators of the network so that you don’t have anything to worry about at all. On top of that, with the feasibility of ERC-20 tokens actively supporting the Polygon network, you won’t have to feel left out because you didn’t come from a Polygon background but rather an Ether one.
You can trade these tokens actively on the Polygon network with the help of a small and sophisticated bridge which allows you to avoid higher transaction and throughput fees on the network. The thing with Ether network is that it was the pioneer of almost all the crypto-related endeavors taking place within the industry except for Bitcoin because it was the flagship cryptocurrency in itself.
So what changed down the line was that the transaction fee for conducting business over Ether skyrocketed, and people such as developers and those who are just out there testing the validity of the network were bombarded with these fees, and they didn’t know what to do. That is why Ether is constantly losing its business which is competitors such as the likes of QuickSwap and many other such blockchain networks. Over the QuickSwap network, it is imperative that you would be able to enjoy every luxury that you did over a potential crypto exchange or a high-tier blockchain network, along with added benefits of affordability, compatibility with Internet infrastructure, and potential ease of use for the whole operation.
How Does QuickSwap Work?
It has already been explained above what QuickSwap is all about and what you can do with it, but how does the swapping option for tokens work for the end user is still a fainting reality for many, and to put the matter at rest, the detailed working of QuickSwap is about to be discussed. QuickSwap utilizes the automated market maker model, which develops multiple liquidity pools of various tokens which might interest the end user.
The pools are developed in pairs such as there could be a pair of XRP and Ether, Bitcoin and Ether, and various other options that are paired with each other in a random fashion; this is to make sure that the user has something at the end which might either interest them and they might engage in swapping over it could be the very pair they were looking for all that time.
There is no intermediary whatsoever as multiple crypto exchanges, and decentralized enterprises out there make use of it. There is no intermediary such as a broker, a taker, or any kind of maker for these tokens for that matter, because all the interaction that a user gets is through a smart contract. If you wish to create or become part of a mining pool or to provide liquidity to the system, you can do so by depositing a definitive pair of tokens that have an equal value to each other.
You can’t deposit two Ether coins and one Bitcoin or two bitcoins for one Ether, for that matter, because it isn’t completing the ratio on both ends, such as going 1:1 or 2:2. The value of one token might not be in correspondence with the other one; therefore, the market value is taken into account here, and pairs are developed when you finally become part of the mining pool.
There are a few things that you might understand before jumping into the whole mining pool business and becoming a liquidity provider yourself. When you embark on this mission and actually stake away a pair of crypto tokens that you have chosen for the task, you would be provided with a liquidity pools token which would serve as a receipt for the share that you have just added to it. This is to make sure that no one is being scammed or pushed throughout the event of staking their tokens and receiving transaction fees.
Plus, if anything goes south, such as you are not receiving the transaction fees up to the mark of your total investment or at the end of the day when you want to just close your staking position and get your tokens back, there is some miscalculation you can stomp this receipt in the face of the Polygon network and that of the QuickSwap which will eventually help you to get your fair share back.
This is not something that happens all the time, but it’s more of a precautionary step to make sure that you are well covered, and no one does any wrong to you. When you claim your crypto tokens back to the ones that you had staked within the mining pool running by this initiative, the tokens written on the receipt will be transacted back to your crypto wallet, and the receipt will be burnt once the process is complete.
This is to make sure that double-spend attacks could be avoided because if someone still has the receipt and it is not completely neutralized from the system, then anyone can use it twice to reclaim what they had already taken from the network itself. You can also provide these tokens or the receipt that you have received for staking your tokens with a third party individual, which they can use in feed farming, meaning that all the fees that you receive as a reward would be reinvested within the pool so that you could get your hands on compound interest.
Of course, this thing is not for everyone because some people are doing it to make a quick buck, and they want to get their hands on the earnings as soon as these become available, but if you do want to increase your chance of making more money then this is something that you can do, and it is totally legit within the Polygon network and that of QuickSwap.
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