Introducing QuickSwap: Meet the Next Generation of High-Performance DEX
Updated: May 21, 2021
QuickSwap is a permissionless decentralized exchange (DEX) based on Ethereum, powered by Polygon Network’s Layer 2 scalability infrastructure. By utilizing Layer 2 for transactions, QuickSwap users will be able to trade any ERC20 asset at lightning-fast speeds with near-zero gas costs.
Incorporating a community-focused governance structure and a fair token distribution model, QuickSwap is empowering traders whilst removing the costly barriers to entry to DEXs for the general crypto user. Liquidity mining and yield farming opportunities will incentivize the growth of a strong liquidity provider ecosystem.
QuickSwap was created and is backed by some of the industry’s most prominent thought leaders in the fields of Ethereum token & contract standards and Layer 2 scalability. The protocol represents the next stage in the evolution of decentralized trading and is designed to enable the next wave of users to enter DeFi.
Do We Really Need Another DEX? Yes, We Do, On Layer 2!
DeFi has reached a critical juncture due to the demand for decentralized trading increasing exponentially. The stress on the Ethereum mainchain, resulting from DeFi protocol usage, has caused transaction fees and confirmation times to skyrocket.
Popular decentralized exchanges such as Uniswap rely solely on the capacity of the Ethereum mainchain. Therefore, they’re not only contributing to increasing network congestion, but have become victims of the success of the wider DeFi industry.
During UniSwap’s UNI token issuance period, transaction fees on Ethereum reach highs of 800 ($6.31) GWEI for a ‘fast’ transaction (~30 seconds). For a more modest cost of $3.98, DEX users had to wait over 11 minutes for their transaction to confirm.
The problem of gas fees when using Uniswap and other DeFi protocols is even worse. A single trade on Uniswap during the UNI issuance event required upwards of ~$20–30 in gas fees to be confirmed in a reasonable period of time! In recent months, as Ethereum’s price has skyrocketed, even with the launch of UniSwap v3, these fees have soared much higher, with many users reporting gas fees in the hundreds (and even thousands) of dollars.
These prohibitively high gas costs and long transaction times are not conducive to bringing more of the current crypto community into DeFi, let alone mainstream adoption. There’s a glaring catch-22 with the DeFi industry as it currently stands; the more users that on-board to DeFi products, the greater the network congestion, and therefore the greater the barrier to entry.
For DeFi to thrive, we need low-cost, high-performance infrastructure to overcome these technical hurdles. Layer 2 is the answer, and QuickSwap is leading the charge on the Layer 2 DEX front, providing the solution to the crippling problems of current DEXs.
QuickSwap is a permission-less decentralized exchange (DEX) based on Ethereum but powered by Polygon’s Layer 2 scalability infrastructure.
Just like current leading DEXs, such as Uniswap, anyone can trade any ERC20 token on QuickSwap. If an asset isn’t currently supported on the platform, users can list any ERC20 token on QuickSwap by providing liquidity to enable instant asset swaps. They will then earn fees every time other users trade via that trading pair.
Liquidity providers will be incentivized by both yield farming and liquidity mining opportunities. Users who provide liquidity for incentivized trading pairs on QuickSwap will not only be entitled to a percentage of the platform’s 0.3% trading fees, but will also earn QuickSwap’s native QUICK governance token for their participation.
The protocol will be governed by QUICK token holders, who will be able to create proposals for and vote on various factors relating to the running of the protocol. QuickSwap is being built for the community, to be run (eventually) entirely by the community. Thus far, QuickSwap has had one community governance vote, which interested parties can read about here.
Sounds like yet another Uniswap clone, right? Wrong. QuickSwap’s disruptive value proposition lies in its Layer 2 integration.
By utilizing Layer 2 for transactions, QuickSwap users are empowered with the ability to trade assets at lightning-fast speeds with near zero gas fees. At the time of this blog’s most recent edit, the cost for an average transaction on Ethereum stands at $19.42/tx!
In comparison, transactions on Polygon can be confirmed in as little as ~1 second, at cost that are negligible to the everyday consumer. The cost and speed is why our users are staying for the longhaul. Fees on May 18th were recorded at 0.01% compared to Ethereum.
QuickSwap removes the costly barriers to entry and usage for the general crypto user, enabling the next wave to enter DeFi. Near-instant decentralized trading with near-zero gas fees is quickly approaching.
QuickSwap launched liquidity mining on Friday, October 9th, 2020. Since that date, the market cap of QuickSwap’s native QUICK token has increased to over $180 million. Even more impressively, QuickSwap has recorded over 400k transactions and nearly $600 million in volume in the last 24 hours (even with the current market pullback). With a TVL of almost $800 million, it’s safe to say that QuickSwap is experiencing explosive growth and is well on the way to $1 billion in liquidity.
QuickSwap incorporates the popular features of leading DEXs, but provides the missing critical ingredients required for a truly seamless user experience:
- high-speed token transfers
- and negligible transaction fees
Just like other leading DEXs, any user can list any ERC20 token on QuickSwap by providing liquidity for the trading pair. There is no requirement to ask permission from any other person or entity before listing an asset.
Layer 2 Transactions
Transactions on QuickSwap are powered by Polygon, a Plasma-based Layer 2 Ethereum scalability solution. This means asset swaps can be completed within ~2 seconds at a tiny fraction of the gas cost on the Ethereum mainchain. Transactions on Polygon achieve finality on the Ethereum mainchain — providing all the security of Ethereum with the massive performance capabilities of Layer 2.
Users can trade on QuickSwap directly from their personal wallet (including MetaMask, Coinbase Wallet, and various mobile wallets via WalletConnect). Unlike with centralized exchanges, there is no need to deposit tokens onto the exchange before trading. Users therefore retain complete custody over their assets during the trading process.
By providing liquidity to incentivized QuickSwap trading pools, users are rewarded with QUICK tokens. This not only encourages the growth of a strong liquidity provider community, but facilitates distributed governance of the platform by those with ‘skin in the game’ as well.
There will be a trading fee of 0.3% for every transaction on QuickSwap. Users who provide liquidity to trading pairs on the platform are eligible to receive a percentage of trading fees in proportion to their liquidity pool stake. (0.25% are rewarded to LPs, 0.04% to single-asset QUICK stakers, and 0.01% to the QuickSwap Foundation)
QuickSwap will be community-governed. QUICK token holders will have ownership of QuickSwap’s governance process. We’ve already held one community governance vote which determined the establishment of single asset QUICK staking. In the future, holders will be able to submit proposals for changes to the protocol and vote on factors that effect the entire community such as how the treasury distributes funds.
Curators (this is no anonymous food-coin fork, we are here to stay)
QuickSwap is supported by some of the industry’s most prominent thought leaders in the fields of Ethereum token & contract standards and Layer 2 scaling.
Nick is an Ethereum contract programmer, code reviewer, security auditor, standards author and web developer with over 6 years of active blockchain programming experience. Nick participated in the discussions that developed the ERC721 standard and is the author of EIP-2535 Diamond Standard, in addition to ERC1538 and ERC998 Ethereum contract standards.
Sameep is the Co-Founder and Director of the blockchain development and consulting company Ginete Technologies. He is an experienced blockchain developer who has devoted the past two years of his life to assisting businesses explore synergies with, and integrate, blockchain. Sameep is focused on facilitating widespread adoption of decentralized technologies.
Lunar Digital Assets
Lunar Digital Assets (LDA) is a premier blockchain marketing and consultancy firm. Already huge proponents of Polygon, LDA understands the revolutionary nature of Layer 2 for blockchain and are putting their full weight behind QuickSwap to ensure the wider community understands the hugely impactful value proposition of the protocol.
The Matic Foundation
The Matic Foundation is the governing body of Polygon, a leading Ethereum scalability solution already powering more than 90 DApps. The Matic Foundation is closely supporting the QuickSwap team on the technical level and as an advisory team. The Matic Foundation will also participate in the governance of the platform.
QUICK Token: A Fair, Community-First Distribution Model. 96.75% Distributed To The Community 🙌
As a community-governed protocol, long-term growth of a healthy and engaged participant ecosystem, beginning at launch, is of paramount importance. Therefore, it’s important to note that there was no seed round, no private round, no pre-sale, and no public sale (ICO/IDO/IEO) of the QUICK token. 96.75% of the token’s total 1 million supply was reserved for the QuickSwap community.
Read on for more information about QUICK’s Tokenomics in our next blog.
Join the Decentralized Trading Revolution
QuickSwap is unshackling decentralized trading from the performance constraints of the Ethereum mainchain. Any user will be able to trade any ERC20 token with transaction speeds of ~2 seconds and near-zero gas fees, with transactions secured by the Ethereum mainchain.
No more high fees, no more lengthy transaction times. Just high-speed, low-cost decentralized trading — for everyone.
The next generation of DEX is here.
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