QUICKUSD
QUICK / United States dollar
crypto

QuickSwap is a fork of Uniswap that runs on the Polygon network (formerly Matic Network), a Layer-2 scaling solution for Ethereum. Polygon features lower transaction fees compared to the Ethereum mainnet, enabling QuickSwap to facilitate token swaps at a lower cost relative to exchanges like Uniswap v2. QuickSwap's token, QUICK, gives users governance rights over the protocol. QuickSwap is a decentralized exchange for swapping ERC-20 tokens on Polygon PoS chain. It is a direct fork of Uniswap V2 which relies on liquidity pools to facilitate trading. Instead of a traditional order book model in which buyers and sellers post their bids and asks, QuickSwap utilizes a Constant Product Market Maker. In this system, market makers deposit funds into liquidity pools of different pairs of assets which provide the necessary liquidity to facilitate the execution of trades. In order to become liquidity providers, users must split their assets evenly between the asset pairs associated with their chosen pool. Since the liquidity pools are designed to always have a 50/50 distribution, if a user were to supply more on one side than the other, it would immediately result in an impermanent loss due to arbitrageurs filling in the gap. Fortunately, QuickSwap prevents users from depositing assets into pools if they are not properly balanced. When users deposit into the liquidity pools, they receive a token (LP token) which represents their share of the pool and are able to receive fees paid out in tokens of the corresponding pool. LP tokens are not speculative but serve as a receipt and have other uses outside of the protocol such as liquidity mining.