Member-only story
How to Provide Liquidity to Quickswap on Polygon (Matic)
With Screenshots
Gas Reflux
With Ethereum fees on the rise the race for layer 2 scaling solutions has begun. As we all await the deployment of EIP-1559, which aims to mitigate astronomical gas fees, we in the Defi community who want to avoid those fees as much as possible are left with 2 real choices:
- Centralized options like Binance Smart Chain
- Decentralized Layer 2 Solutions like Polygon or Loopring.
Although Binance Smart Chain is indeed smart, its customers are at the mercy of the whims of the exchange. Binance has the power to stop trading, stop withdrawals, claim “Ethereum congestion issues”, etc. Not to mention that they have all of your pertinent personal information because of KYC.
Some of us in the Defi community like to keep things “cash”. A quick virtual handshake, approval of transactions, and we are anonymously on our way to make more gains. Although I personally don’t mind paying $30-$40 a transaction, I have to admit it isn’t optimal. High gas fees have dissuaded me from executing many trades that I may have made last summer for $9 (when we were complaining about $9). So what’s the solution?
Polygon
I would like to invite you to look into Polygon (previously Matic) and explore the many decentralized doors that this network is opening up. It is a layer 2 project or “side-chain”.
Think of it as an offramp that exits into a beautiful city. A fast city.
You’ve been chugging along at 330 gwei, congested and jam-packed in Ethereum layer 1 heat with nowhere to go, when you notice an exit into a world in development.
- They have their own emerging NFT marketplace on Opensea TBA.
- The gas is cheap there, so cheap it’s almost free.
- They have a decentralized exchange that allows you to trade and provide liquidity at lightning-fast speeds, hence its name Quickswap.
- They have NFT games like Neon District
In order to transact in the city, you will need to pay a toll. That toll will be the gas you pay to move from layer 1 to layer 2. Moving around Polygon…
