What is QuickSwap?
Looking for a DEX to but the available options are too expensive? Are you tired of spending your precious ETH on slow swaps? Look no further, QuickSwap is what you need to navigate DeFi yields. Built on Polygon's layer-2 scalability solution, QuickSwap gives you access to the Ethereum DeFi ecosystem at close to zero fees.
To explain QuickSwap protocol, it’s important to mention that its general mechanisms apply to every other dapp. QuickSwap is made out of a collection of smart contracts governed by the community.
Smart contracts are automated pieces of code that mediate the interaction between a user and the dapp. Whenever you interact with QuickSwap, crypto tokens always remain in your possession. In order to access the protocol, users have to manually approve the smart contracts. You can think of it as a bot that performs the action you agree with based on a strict set of rules. This is an important difference compared to traditional finance, where the money is placed with a third party.
With smart contracts, there is no risk of a person running away with users’ money, or ever worse, locking up the money for any reason. Furthermore, anyone can access QuickSwap regardless of their geography, political views, or religion — QuickSwap doesn’t require KYC.
Transparency and decentralization are powerful tools to enable a thriving DeFi ecosystem. With the traditional limitations out of the way, an important question arises: “How does QuickSwap become self-sustaining?”
QuickSwap mainly derives its value from issuing swaps and farming liquidity. In exchange for the service provided, QuickSwap receives a small fee that goes into maintaining the protocol. Upon consulting with the community, core developers are usually in charge of implementing the protocol upgrades. This ensures QuickSwap stays safe from hacks and the protocol adapts to the market conditions.
As the number of transactions increase, the fees quickly add up. A portion of these fees goes into the protocol treasury, which pays for the developers, audits, and future products.
The QuickSwap treasury is secured by a multisig that is being held by the core team. The development team aims to eventually transition to on-chain governance, giving the QuickSwap DAO complete control of protocol parameters.
The open nature of DeFi encourages protocols to cooperate and innovate. QuickSwap is a unique protocol that has been in the making since early 2020. However, the protocol can be vulnerable to hacks and exploits. As easy as it is for developers to review each others’ code, hackers can just as easily spot a vulnerability and take advantage of it.
The code is publicly available to verify. Those who are tech savvy can audit the code for themselves and see precisely what the smart contracts do. Less technical users can indirectly assess the safety of QuickSwap protocol based on audits and reports issued by technical community members. QuickSwap has been audited by Runtime Verification and runs bug bounties to patch potential vulnerabilities.
Despite its careful analysis, QuickSwap went through a security incident on October 24, 2022. In the early hours, a hacker initiated a flash loan attack against Market XYZ, a lending pool on QuickSwap. The attacker manipulated the miMATIC price on Curve Oracle to borrow $220,000, which was deposited by Qi Dao. As a result of the exploit, QuickSwap has closed the Market XYZ lending pool.
The QuickSwap smart contracts were unaffected – only the Market XYZ lending market was compromised. QuickSwap also added that Qi Dao provided the seed funds for the Market XYZ lending market and stressed that “no user funds were compromised.” After the incident, QuickSwap have decided to sunset QuickSwap Lend.
How does QuickSwap work?
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 are 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.
How to make money on QuickSwap?
The mechanics of making money on QuickSwap are the same as on every other DEX. The difference lies in QuickSwap's integration with Polygon's L2. As a result, users can enjoy the same trading experience as on Uniswap, but with cheaper fees and faster transactions.
QuickSwap Swaps
Looking to take advantage of an arbitrage opportunity? QuickSwap has a swap feature for your needs.
To make a swap on QuickSwap, follow these steps:
1. Open QuickSwap app
2. Click on the "Swap" tab
3. Choose the swapping pair
4. Input the amount you would like to swap
5. Approve the transaction
6. Profit!
QuickSwap Staking
On QuickSwap, users can multiply their QUICK tokens by staking them on the platform. It's a little place called the "Dragon's Den." There, you can lock up your QUICK tokens, help secure the platform and get an insane APY.
To stake QUICK, follow these steps:
1. Open the QuickSwap app
2. Click on the "Dragon's Den" tab
3. Input the amount of QUICK you want to stake
4. Approve the transaction
5. Profit!
QuickSwap Flash Swaps
Flash loans are a great tool for taking advantage of arbitrage opportunities using greater purchasing power than what you would normally have.
Imagine a scenario where the cost of buying 1 ETH on QuickSwap is 200 DAI, and on Oasis (or any other trading venue), 1 ETH buys 220 DAI. To anyone with 200 DAI available, this situation represents a risk-free profit of 20 DAI. Unfortunately, you may not have 200 DAI lying around. With flash swaps, however, this risk-free profit is available for anyone to take as long as they're able to pay gas fees.
Price Prediction for QuickSwap — Can it hit $1000?
Buying and hodling QUICK — the native token of QuickSwap— is one way of potentially making money on QuickSwap.
By looking at its current price, it’s natural to think about the chance of QUICK hitting $1000 per token. This can happen sooner, or way in the future, and is determined by a couple of ever-changing factors.
Let’s examine the potential growth of the QUICK token by analyzing its tokenomics. QUICK’s current market cap sits comfortably at ${MARKET_CAP}. With {CIRCULATING_SUPPLY} QUICK tokens being in circulation today, that means a price of {PRICE} per QUICK.
How did we come to that calculation? It’s quite easy, the price of an QUICK token is equal to its current market cap divided by the number of tokens in circulation. Dividing ${MARKET_CAP} by {CIRCULATING_SUPPLY} gives us a result of {PRICE} for each QUICK coin.
By changing the order in the simple formula above we can use it to calculate other things as well. This helps us a lot because we can deduce the market cap of QUICK at different token prices. Then, we can use the result to compare it to the current state of the network and see what would be required for QUICK to hit that price.
At a price of $1000 per token, that means the current market cap of QUICK would equal ${{CIRCULATING_SUPPLY} * 1000}. Remember that we arrived at this number by multiplying the amount of circulating tokens by $1000.
Now let’s shift our attention to the fully diluted market cap.
Some blockchains may have their tokenomics built in a way that only a small percentage of tokens are circulating at the beginning. This can be misleading because we don’t have the full picture and only take into account the current number of coins released in the market.
The fully diluted market cap represents the total value of a coin if all tokens were in circulation. QUICK’s whole supply of tokens is {MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY} QUICK which means that no more coins above that number will ever be created.
These tokens are not created at the discretion of a specific entity. They are created automatically by the network to reward different actors that keep it secure.
How does this impact the price of QUICK? Taking into account the current price of an QUICK token, that would result in a fully diluted market cap of ${MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY * PRICE}. QUICK coins that have been burned are not taken into consideration because they have been permanently removed from circulation.
Whether it seems gigantic or not, the number we came to above only takes into account the current price of an QUICK token. Doing the same calculation but with a price of $1000 gives us a result of ${{MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY} * 1000} for the QUICK protocol fully diluted market cap.
These are all crucial details to know when calculating if QUICK can reach the price of $1000 per token. If the diluted market capitalization is way too high, the token has little room left to grow. Blockchains in general have no cap on the value they can reach, whether that number seems possible it’s totally up to you.
The future of QUICK depends solely on its growth as a network used by tens and hundreds of millions of users.
If you’re looking to add some QUICK to your portfolio, the most trusted places to get some are Binance and Coinbase.