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Layer 2 DEX QuickSwap’s TVL surmounts $1 Billion

Given the benefits of QuickSwap over others, it is obvious why more DeFi users are flocking to this DEX


As announced on May 26, 2021, the total value locked on the Ethereum-based decentralized exchange QuickSwap has surpassed $1 billion. Over 103,000 Quickswap ($QUICK) tokens are now staked on QuickSwap, which is almost 64 percent of the circulating supply. Use 50%, -Dave

The exchange’s official page took to Twitter saying, “Quickswap just hit $1,000,000,000 TVL! Onwards! Powered by @0xPolygon $MATIC.”

Quite evidently, the TVL across many DeFi protocols has seen tremendous growth in recent months due to the rising demand of crypto. According to the DeFi statistic website DeFiPusle, the total value locked across all DeFi protocols has reached over $62 billion. However, QuickSwap has outperformed most other DEXs and made it to the billion-dollar club at such a rapid pace due to its exceptional features. This also makes QuickSwap the first-ever native Polygon DEX to reach $1 billion TVL.

Although based on Ethereum, QuickSwap leverages the most popular Ethereum layer 2 scalability infrastructure, Polygon (previously known as Matic), to offer high throughput and extremely low fees for transacting any ERC20 token. 

With faster and cheaper transactions possible on Polygon, there has recently been a surge in the transaction volume of Polygon. Increasing amounts of stablecoins including DAI, USDC, and USDT are being moved to the Polygon network to reap the benefits of the network. This surge in the volume of stablecoins on Polygon has also been instrumental in the growth of QuickSwap and is expected to further boost its usage.

In contrast, other decentralized exchanges like Uniswap that still use the Ethereum network as the base layer for transactions deal with slow transactions and extremely high gas. Users on these exchanges may have to pay anywhere between $40 to $90 fee for a single swap.

Given the benefits of QuickSwap over others, it is obvious why more DeFi users are flocking to this DEX. According to a report published by CryptoDiffer on May 25, the TVL on QuickSwap has grown by over 567% over the last 30 days as compared to 17.9% growth of major DEX Uniswap and 15.6% growth of SushiSwap. This indicates that QuickSwap’s TVL surged by almost $500 million over the past month. This surge in usage of QuickSwap has also made it the dApp with the largest user base on Polygon.

It is also noteworthy that in less than 15 hours since the announcement of reaching $900 million TVL on QuickSwap, the exchange saw another $100 million added to its protocol and made it to a billion dollars. 

Apart from fast and low-cost transactions, another reason for the spike in QuickSwap’s TVL is the high compunded APY for various crypto pairs on the exchange. Users who added liquidity on QuickSwap have received APY as high as 306%. 

A recent tweet by QuickSwap shows that pairs such as ETH/MATIC, ETH/USDC, and DAI/ETH have yielded compounded APY as high as 216%, 306%, and 251% respectively. There are also many other pairs that offer more than 100% APY on the added liquidity. The platform has also integrated two yield farming aggregators Beefy Finance and Auto Farm to their rewards program, adding multi-chain capability to QuickSwap.

The new bridges developed to ease interoperability now make it even easier to use Polygon, which is sure to further the adoption of QuickSwap in the coming days. As the popularity of layer 2 solutions increase and users realize there’s a better alternative to mainstream DEXs, QuickSwap will lead the charge of DEXs on Polygon and become the preferred platform to swap any and all Ethereum-based crypto tokens. 

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