Is Quickswap a good DeFi platform?
Decentralized exchanges are gaining more and more traction, especially as their centralized alternatives begin to be regulated. And one of the most popular is Quickswap, the Polygon network DEX
In this article, I will tell you what Quickswap is, how it works, what its QUICK token looks like and how you can buy it.
What is Quick Exchange?
Quickswap is a stock exchange MA( Automated Market Maker) decentralized belonging to the Polygon network.
Polygon is a crypto project that emerged to provide scalability and additional functionality to the Ethereum network, becoming a sidechain of it.
For this reason, there is great interoperability between the two blockchains, so although Quickswap is a Polygon exchange, it can exchange ERC20 tokens, i.e. from the Ethereum network.
Is it a secure platform?
One of the questions you're probably asking yourself right now is whether Quickswap is safe, right?
To answer this question, it is important to remember that Quickswap is an exchange developed in Polygon, in a second layer infrastructure.
In this way, all operations are carried out in Polygon, benefiting from its speed and low commissions, even if ultimately the transaction is finalized in the Ethereum network.
These operations therefore have the same security as those carried out directly on this network.
How does Quick Exchange work?
As I said at the beginning, Quickswap is an AMM exchange (Automated Market Makers), but what does that mean?
In a classic exchange, when you want to buy cryptocurrencies, it “matches” you with someone who wants to sell them, so that an exchange is made with this counterparty.
In an AMM exchange like Quickswap, the counterparty digit is stripped and the cryptocurrencies you request are obtained from so-called liquidity pools.
These pools are reserves of tokens that liquidity providers have voluntarily decided to block on the platform, earning a small commission for each transaction that takes place on the platform.
The profitability offered by liquidity pools depends on many factors, but it could come down to the relationship between supply and demand.
Pools in which there is not much liquidity (people lock their tokens) but in which there are many transactions will tend to pay more to attract investors and vice versa.
However, it is not a safe investment as it may seem at first glance, because such people run the risk of “impermanent loss”.
This risk is present in all exchanges of this type and refers to the possibility that, as long as their cryptocurrencies are blocked, their price will drop.
This way, although they achieved profitability in reward mode, in net terms, they lost.
Be careful, these losses only materialize if you sell your tokens, you can always keep them until they go up.
Quick Exchange Tokens
Quickswap has its own ERC20 token, QuickSwap (QUICK). This was launched on the market in February 2021, and has 2 objectives.
The first of these should serve as a governance token. Being a decentralized exchange, it is the users themselves who “have the power” over the platform.
This way, users who have QUICK tokens can pitch and vote on proposals that, if they have enough support, can be developed on the exchange.
The second purpose of the QUICK token is to be distributed as a reward to people who contribute liquidity to the system.
For this reason, the token is strongly affected by periods of high and low demand on the exchange. So, at the end of April 2021, its price was around $160, and a week later it reached $1.
However, these price changes go both ways, from $1 it crashed to $450.
Buy Quickswap Token (FAST)
QUICK is a listed token on a large number of exchanges, so you can find it on Coinbase, Binance and of course Quickswap itself.
If you want to buy QUICK using a card, I personally recommend Coinbase. Here are the steps you need to follow:
- Create a Coinbase account.
- Look for the FAST token. You can do this from the “Operate” section on the computer, but if you are using the phone, you must: press the blue button with the two arrows > “Buy” > Find asset.
- Select the amount of tokens you want to buy or the money you want to spend and enter your card details.
If you prefer, you can transfer money to your Coinbase account and buy QUICK with your balance.
Final Notices
Quickswap is one of many decentralized exchanges that have sprung up in recent years.
As an exchange of the Polygon network, it not only allows trading with tokens of this blockchain, but also with ERC20 tokens, always with very low commissions and with minimal waiting times.
This is great, especially in an environment where Ethereum network fees are skyrocketing, and when you sometimes have to expect excessive amounts for a single transaction.
Since its launch, a lot of cash has entered the exchange, and although it is currently in a very early stage of development, it is already a favorite of many investors.
However, its popularity is still lower than other exchanges, such as 1inch ou Uniswap, but everything indicates that these differences will dissipate in the future, in particular because of the advantages offered by the operation with Quickswap.
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