Yesterday, thanks to the great efforts by members of the Unibright Community, Quickswap added UBT/ETH and UBT/QUICK to their list of incentivised pool - This means that if you add liquidity for either of these pairings you will earn $QUICK. This presents an opportunity for token holders while they wait for staking and Baseledger to go live!
What is QUICKSWAP?
Quickswap is an exact clone of Uniswap, with three key differences:
- It is built on Matic, a layer 2 solution
This means that gas fees are paid in MATIC and are very very very cheap compared to Uniswap. Transactions are also very fast, near instant!
- There are more incentivised pools for those who provide liquidity
Uniswap distributed by doing an airdrop to all users of the exchange, Quickswap has chosen to distribute their governance token through farming to help attract liquidity to their exchange (remember Sushiswap and their "vampire" attack?) - which makes sense, as users will already be keen to use an exchange with near to zero gas fees!
- Their logo is a dragon instead of a unicorn
Both are magical - they also have a blue colour scheme instead of pink...
Why is it good that $UBT is on QUICKSWAP?
$UBT is traded primarily on Uniswap, and in recent times, Ethereum gas fees have meant that Uniswap is not great for the smaller buyers. Quickswap means you can now buy $100 of UBT without having to pay $20 for gas!
In the first day since listing, the UBT pools on QUICKSWAP have already grown to $1.6m, which is roughly half the value of the current UBT Uniswap pool. This is due to incentives of earning $QUICK on top of the usual LP fees. LP can now farm their UBT LP tokens!
Together, these two points mean that the little guy finally has a better place to buy UBT, while LP providers can earn a much larger APY for providing liquidity due to the bonus rewards paid in $QUICK. Slippage is therefore slightly higher on QUICKSWAP, but this is more than made up for by the negligible gas fees.
How to connect and use QUICKSWAP with UBT
There is only one "technical" hurdle to using Quickswap - moving your assets to the Matic network.
You will first need to use Metamask and add the MATIC MAINNET network through the custom RPC setting.
For UBT this is simple, as the token has already been mapped on the PoS Bridge, and it costs about $5-$10 to move each asset. Connect to https://wallet.matic.network. and click to move the assets across
Once you have connected and moved your tokens over, you are ready to go, because when you connect to QUICKSWAP you will receive 0.1 MATIC to cover all your gas expenses!
Detailed Guide and further details
For everything you need to do, check out the official FAQ and Guides QUICKSWAP have put on Medium
As with anything as technical as this, DYOR and make sure you are aware of all the risks associated with farming, providing liquidity and using a layer 2 solution.
Bonus Info - Providing Liquidity and IL
When providing liquidity in AMM Liquidity pools, there is something called "Impermanent Loss" - This sounds scarier than it actually is.
If you provide liquidity in two different assets, the price of those assets is going to change, and this will change the ratio of the two assets in the pool.
Lets use UBT and ETH as an Example.
If you add $1K of UBT and $1K of ETH to begin with, those amount will change over time.
For simplicity, lets call this 100 UBT and 1ETH. If the Price of UBT goes up, then the number of UBT you have in the pool will decrease, and the amount of ETH you have in the pool will Increase.
Impermanent loss is difference between what your initial assets would have been worth if you had just held them vs adding them to the pool.
For example the price of UBT might increase by 20%, but your pool only increased by 15%. So you are still better off - just not by as much as you could have! And this works the other way as well, and if both UBT and ETH are increasing/decreasing at the same time then there is no IL. DYOR, but this diagram summarises the four scenarios nicely:
Thanks for reading - if you would like more information please check these two blogs out: