QuickSwap V2

QuickSwap V2

QuickSwap, a fork of Uniswap V2, originally deployed on the Polygon blockchain, provides efficient and user-friendly liquidity pools.

Uniswap V2: Pioneering the AMM Landscape

Uniswap V2 is a cornerstone in the decentralized exchange (DEX) ecosystem, introducing the Constant Product Market Maker model, which revolutionized liquidity pool mechanics.

Technology Overview:

• Model: Uniswap V2 contracts operate on the Constant Product Market Maker formula ( x * y = k) where ( x ) and ( y ) are the reserve quantities of two tokens, and ( k ) is a constant ensuring liquidity across all price levels.

Liquidity Provision:

• Liquidity providers (LPs) deposit equal value of two ERC20 tokens into the pool.

• The initial provider determines the exchange rate by setting the first pair of token deposits.

• LPs receive liquidity tokens that represent their proportional ownership in the pool.

Fee Mechanism:

• A 0.3% trading fee is charged on every swap, distributed among LPs in proportion to their stake.

Key Innovations:

• Decentralized Liquidity Provision: Any user can add liquidity and earn fees without requiring permission.

• Price Stability and Arbitrage: Prices are adjusted dynamically by trades, promoting efficient market conditions.

• Oracles: Time-weighted average price (TWAP) oracles for secure off-chain integrations.