An Overview of LP mining, Dual mining, Syrup, and Dragon’s Lair
Unlike other DEXs, Quickswap has a lot of utility, but it can be difficult to comprehend and use for rookies, which is why I’m writing this essay, in which I’ll go through each feature, as well as the risk and reward.
I'll start off with;
Liquidity Mining (Yield farming) is intimately linked to an automated market maker concept (AMM). Liquidity providers (LPs) and liquidity pools are usually involved. Let’s have a look at how it works.
Liquidity providers deposit tokens into a liquidity pool. This pool powers a marketplace where users can exchange tokens. The usage of these platforms incurs fees, which are then paid out to liquidity providers according to their share of the liquidity pool. On top of fees, another incentive to add tokens to a liquidity pool could be the distribution of a native token.
Liquidity providers on Quickswap are incentivized in proportion to the quantity of liquidity they offer to the liquidity pool. The transaction fee is proportionally dispersed among all liquidity providers when the trade is facilitated, and smart contracts govern what happens in the liquidity pool, with each asset swap facilitated by the smart contract resulting in a price adjustment.
What are the benefits of Providing liquidity on Quickswap?
A 0.3% fee is charged for swaps performed on Quickswap. Liquidity Providers receive 0.25% of these fees for their pool.
Additionally, you can use your LP tokens to earn dQUICK in addition to the trading fees by staking them in the liquidity mining tab. Because dQUICK is already staked QUICK, your incentive is generating even more income.
It’s worth mentioning that Quickswap selects which pools are incentivized, and changes can occur at any time.
How does it work?
- Provide Liquidity to the pool of your choice on the Pool page.
- Receive LP Tokens (also called “Pool Tokens”) in exchange for your deposit (think of it as a sort of receipt, i.e. a redeemable proof of deposit).
- Deposit your LP tokens to the corresponding pool on the QUICK pools page.
- After you’ve confirmed all transactions on MetaMask, which it will automatically prompt you to do, that’s it! You’re now farming dQUICK!
- You can withdraw your liquidity at any time. If you wish to remove your tokens or transfer your liquidity to a different pool, simply follow these same steps in reverse order.
What risks are there now that you know the benefits?
Price swings in an asset pool to which you’re providing liquidity can result in impermanent loss. However, depending on timing, market conditions, and other factors, income from fees and yield farming can occasionally offset this, allowing LPs to still achieve a net positive.
Another is the possibility of a smart contract bug, as well as rug pulls. As QuickSwap is a fork of UniSwap, without a single line of code being changed and Uniswap has been professionally audited and hasn’t been hacked to date it appears to be safe in that aspect. Rug pulls occur when a coin gets hyped and a whale abruptly pulls out from a pool after the price has been driven up. Be on the lookout for such games, and don’t start them yourself.
Take caution to thoroughly do your own research before yield farming, You might consider yield farming with a relatively low percentage of your crypto portfolio reserved for higher-risk investments.
Dual farming is a staking reward method in which liquidity providers (LPs) receive rewards for their liquidity in the form of two cryptocurrencies instead of just one. In this case, LPs will earn rewards in the following ways
- LPs receive a portion of the trading fees the DEX collects from the pair in question. These rewards are paid out at several daily intervals and auto compounded into the LP’s position. They are paid in the 2 assets that are in the pool
- After depositing liquidity, LPs deposit their LP tokens to earn $QUICK & $MATIC in the dual farming tab.
What are the benefits of Dual Farming?
By increasing pool APYs, dual rewards can help to enhance liquidity provider yields. LPs may benefit from enhanced asset diversification and reduced volatility by receiving rewards in two different digital currencies.
How does it work?
- Head over to quickswap.exchange and add liquidity via the “Pool” tab. Deposit the specified coins required to participate in your desired dual-farming pair and receive LP tokens.
- Then go to the “Farms” tab and select “Dual Mining” from the drop-down menu. Select the eligible pool and deposit the recently received LP tokens.
The main disadvantage of participating in any type of liquidity provision, including dual farming, is the possibility of experiencing impermanent loss.
Dragon’s Syrup is a feature designed to give $QUICK holders the opportunity to generate passive income in a variety of participating tokens. Users stake $QUICK to earn a portion of the rewards token(s) of their choosing
What are the benefits of Dragon Syrup:
You can earn a yield by staking your $QUICK to acquire more tokens of your choice! Dragon’s Syrup pools are tasty!
How does it work?
- From the QuickSwap Interface, click on the tab that says “Farms”. From the drop-down menu that appears when you hover over it, select “Dragon’s Syrup”.
- Scroll through the assets that are available and select which pool(s) you’d like to farm. Then click “Deposit”
- Once you find the pool you’d like to deposit in, click “Deposit QUICK”. Enter the number of QUICK tokens you’d like to stake to earn Syrup rewards. Then, click “Approve” and confirm the transaction in your wallet. Wait a moment for the transaction to complete. When it does, click “Deposit” and confirm in your wallet one more time.
The risk here is pretty common, the possibility of the volatility of the token you accumulated, Quickswap is a permissionless decentralized exchange that performs minimum due diligence on the tokens it lists and rewards. It is up to you to manage your finances and conduct research on the token you wish to accumulate.
Dragon’s Lair is a feature that allows $QUICK holders to stake $QUICK in order to earn even more $QUICK.
What are the benefits of Dragon Lair?
When users make trades on QuickSwap, the exchange charges a 0.3% fee (paid in tokens from the pools). The rewards for the Dragon’s Lair — or staking QUICK — come from those trading fees. 0.04% (out of the 0.30% fee) of the volume from trades on QuickSwap are used to market buy QUICK and distribute it to stakers. The acquired QUICK from fees is then divided up proportionally between the dQUICK holders in the pool, meaning their dQUICK increases in value relative to QUICK
What is dQuick?
dQuick is “Dragon’s Quick”. It’s the asset you receive when you deposit your Quick into the staking contract.
How does it work?
- From the QuickSwap Interface click on the “Farms” tab in the top left corner. Then, click on “LP Mining”.
- The first pool on the LP Mining page is the Dragon’s Lair. To stake your QUICK, click “Manage”, then click “Deposit”.
- Click “Deposit”. Then enter the amount that you’d like to stake. Enter the amount you’d like to stake or stake everything in your wallet by clicking the “Max” button.
- Wait for the transaction to confirm and once it has, you are earning trustless interest on your deposited QUICK!
Apart from the possibility of a smart contract bug, which appears doubtful, this is a single side staking and I really don’t see any risk.
QuickSwap is a fork of Uniswap developed by Nick Mudge and Sameep Singhania on the Polygon blockchain platform. QuickSwap is a permission-less decentralized exchange (DEX) based on Ethereum but powered by Polygon’s Layer 2 scalability infrastructure.
QuickSwap has all of the popular features of top DEXs, but it also has the missing key components for a completely smooth user experience. Some important features of QuickSwap include:
- Community Governance
- Liquidity Mining
- Yield Farming
- Dual Farming
- Layer 2 Transactions
- Non-custodial trading
For More Infomation: