What is QuickSwap?

QuickSwap is a Next Generation Layer 2 Decentralized Exchange (DEX) and Automated Market Maker (AMM). QuickSwap is also a fork or clone of the number one automated market maker, Uniswap. When swapping unicorns for magical dragons, the user interface is virtually identical. However, the difference is that Uniswap runs on the Ethereum network, while QuickSwap runs on the Matic / Polygon Layer-2 platform.

Due to the high congestion on the Ethereum network, QuickSwap offers faster settlements than Uniswap, with much lower fees than Ethereum. As Uniswap has become the industry standard for AMM and Uniswap liquidity mining and has been so heavily audited, it is not surprising that many projects have used open source code to create variations of the number one decentralized exchange (DEX).

What is an Automated Market Maker (AMM)?

Now that we have addressed the question “what is QuickSwap?” – Time to look at automated market makers. Automated Market Makers (AMMs) facilitate permissionless peer-to-peer trading by using liquidity pools instead of order books. Instead of buying cryptocurrencies on a centralized exchange , MMAs use funds from liquidity providers to facilitate token exchanges. Rather than a centralized exchange that maintains custody of your assets and takes a portion of every transaction you make, a decentralized exchange (DEX), or AMM, generally requires a self-custodial wallet, such as MetaMask. Token exchanges are subject to a liquidity provider (LP) fee and network fees. However, providing liquidity to MMAs is a great way to earn passive income with decentralized finance (DeFi)!

Automated Market Maker (AMM) caral has become increasingly popular since the introduction of Uniswap. Since then, a variety of MMAs have emerged following the Uniswap path, such as PancakeSwap and SushiSwap. This seems to be the preferred trading method for the cararn DeFi user. According to DeFi Pulse , at the time of writing, $ 23.97B is locked in decentralized exchanges (DEX) and automated market makers (AMM) on Ethereum. Additionally, Uniswap has outperformed the largest centralized exchange, Coinbase , in terms of trading volume on numerous occasions.

This shows that the AMM caral is a compelling alternative to centralized exchanges. However, gas fees on Ethereum can become problematic when using AMMs if network congestion is too high. This has led to the emergence of several alternatives to Uniswap, created on other blockchains such as Binance Smart Chain (BSC).

Network / Polygon Matic

Renamed the well-known Matic Network in Q1 2021, Polygon is an easy-to-use hybrid protocol for developers. It combines Proof-of-Stake (PoS) and Plasma to create an environment for developers to quickly create and deploy Ethereum-compatible decentralized applications (dApps) that can scale as the industry grows.

Polygon uses “PoS checkpoints” to finalize transactions on the Ethereum Mainnet. Ethereum is the world’s most secure and programmable blockchain with an industry-changing community of developers. By removing some of Ethereum’s computational functionality, Polygon can achieve more than 65,000 transactions per block. However, polygon chains have the option of hosting and running mission critical unsurts of their logic on Ethereum. To do this, Polygon uses a series of smart contracts for functions such as dispute resolution, finality, checkpoints, message relay, and stakeout .

Additionally, Polygon enables developers to easily create customizable blockchain networks. se networks combine flexibility, sovereignty, and scalability, with the robustness and in t eroperability of Ethereum. This makes it incredibly fast and easy to test and securely bring decentralized applications (dApps) to market. Also, the dApps built on Polygon are compatible with all existing tools built for Ethereum developers. For example, to use Polygon with MetaMask, simply change the remote procedure call (RPC) at the top of the extension from Ethereum to the Polygon / Matic network.

In the long-awaited completion of the Ethereum 2.0 update , many successful new projects have been launched on Polygon / Matic instead of on Ethereum. This includes the popular project not fungible token (NFT) SuperFarm . This shows that Polygon offers a Layer 2 solution that is in high demand and essential for continued progression in the crypto industry.

Layer 2 scale solutions

Ethereum is the chain of blocks enabled smart contracts most respected programmable and most used of the world. It could be said that without Ethereum, the blockchain industry might not have achieved the network effect that it has today. This is largely due to the differences between Bitcoin and Ethereum .

Ethereum allows you to automate composable and programmable money through smart contracts. Additionally, Etherum is home to thousands of cryptocurrency projects that have used Ethereum’s native ERC-20 token standard. se tokens flooded the crypto markets in the initial coin offering (ICO) boom of 2017.

However, Ethereum has struggled to keep up with the demand for decentralized finance applications (DeFi) based on it. This has hampered the growth of the industry to some extent and prompted many projects to seek innovative solutions to help Ethereum scale to meet the demand of its users.

re are several layer-2 sca l solutions from ING for Ethereum. se include fragmentation , side chains, state channels, Plasma, Optimistic Rollups, ZK-Rollups and more! If you’d like to learn more about the different types of Layer 2 scaling solutions, save our Ethereum Scaling Solutions article for later!

Also, to find out how Ethereum works on a fundamental level, be sure to check out the Ethereum 101 course at Ivan on Tech Academy! Here we explore how smart contracts , Ethereum virtual machine (EVM), and ERC-20 tokens work! Also, while you’re there, also check our course Blockchain & Bitcoin 101 . Ivan at Tech Academy covers the basics of blockchain, including explaining the Proof of Work (PoW) consensus algorithm, UTXO, hash functions , forks, and much more. Join a welcoming community of over 30,000 students, at Ivan on Tech Academy today!

QuickSwap (QUICK) Token FAQs:

What are the risks of using QuickSwap?

risks of using QuickSwap are almost identical on any Automated Market Maker (AMM) platform: impermanent loss, a possible smart contract error, and carpet pulls are three of the most common risks associated with this DeFi sector.

As QuickSwap is a fork of UniSwap, without a single line of code being changed, just a slight cosmetic makeover (UI), powered by Matic Network for much faster and cheaper transactions, and Uniswap has been professionally audited and not It has been hacked. To date, the risks seem reasonable with respect to the smart contract itself.

Impermanent loss can occur when price fluctuations occur in a group of assets to which you are providing liquidity. However, gains made from tariffs and yield farming can sometimes counteract this, allowing LPs to still acquire a positive net result, based on timing, market conditions, and other variables.

Carpet tugs occur when a coin is exaggerated and a whale is suddenly removed from a group after the price has been raised, often artificially or through exaggerated manipulation. Be on the lookout for such games and certainly don’t start them.

Be careful to do your own research before yield cultivation, consider the risks involved and your own tolerance for risk, and be prepared to accept a loss in some situations. You could consider yield farming with a relatively low percentage of your crypto portfolio reserved for higher risk investments.

Some platforms in the DeFi space are considered degenerate bets by some, labeling their customers as “degens.” But, with the help of a good community that understands QuickSwap’s potential, good ideas, and active implementation, there is a chance to turn it into a long-term project that meets a real need in the space.

Related Posts

© 2024 Cryptocoin Budisma.net