How to Provide Liquidity to Quickswap on Polygon (Matic)
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?
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 gas will cost next to nothing. You will only need to pay gas again when you leave.
To learn how to setup a Matic wallet, add liquidity to Quickswap, or maybe just find out why you might want to do that, please continue reading.
How do I enter into this beautiful city? First, you will need a Metamask wallet. Go here if you don’t already have one. You will need to be familiar with using Metamask before we continue. You can also use wallet connect or Coinbase wallet, but I recommend MetaMask for ease of use and lower fees.
If you look at the top of your Metamask wallet you will notice the network dropdown menu.
Once you click that arrow, you will see a list of available networks other than the Ethereum network. You will not have Matic Network auto-matic-lly installed (see what I did there?). You follow these steps to do that manually: How to Setup Matic Mainnet RPC
Metamask may also give you a quick RPC setup option when you visit their site to setup your wallet.
The next thing you will need to become familiar with is your Matic Wallet. Go here: https://wallet.matic.network/login to connect your MetaMask wallet.
Your MetaMask wallet address will essentially be your Matic Wallet.
You will be asked for a signature request as is typical when interacting with various decentralized applications. That won’t cost you anything.
You’ll see something like this at the top of your Matic Wallet page.
The Matic Wallet is basically just a gateway. It is here that you will move tokens from the Ethereum network to the Matic Network. You can also stake your Matic here.
Matic is an ERC-20 token. So, for my Ether to be ERC-20 compatible it will be automatically assumed as Wrapped Ether. I don’t have to do anything for that, it is basically one and the same for these purposes. Clicking on the dropdown menu where it shows Wrapped Ether, you will see a list of all the tokens that are available to be moved to the Matic Network. Some of these include DAI, 1INCH, BAT, BUSD, LINK, COMP, LEND, SUSHI, UNI, etc. So, there is quite a bit you can move to this network.
I recommend keeping it simple and just moving ETH. You can acquire everything else tradable on Polygon(Matic) through Quickswap. Of course, follow any strategy that seems wise to you. One thing to note is that when you switch over to Polygon it will take up to 8 minutes to see those funds in your Matic wallet.
When you switch networks on your Metamask wallet to Matic Mainnet, you should see your ETH there as WETH. There is no need to transfer funds from Matic Wallet back to your Metamask wallet, it’s already in there after that 8-minute wait. Remember Matic wallet isn’t really a separate wallet, just a “side wallet” that allows you to interact with Matic(Polygon) network.
So now you have ETH/WETH on your Matic Mainnet and you may be wondering why and what to do with it. Do what you normally do with your ETH, only this time visit Quickswap in place of Sushiswap or Uniswap.
I am still a fan of Uniswap and Sushiswap and they still have their solid footholds in Defi, especially when it comes to the release of new tokens, but what we are trying to do with Quickswap is to avoid gas and make quick transactions.
Quickswap is a Uniswap fork. It is almost exactly the same. If you like Unicorns, you probably also like Dragons. If you know how to use Uniswap, you don’t need any directions on how to use Quickswap, but you probably want to know why.
Reason 1: Gasless
Reason 2: Tokenomics.
Currently, there are less than 10% of Quickswap tokens out on the market. I bought in at $120 and watched it spike to $500+. If you are a speculator, please dyor, but I like this token in the way I liked SUSHI in Oct 2020. How do you get more? Click here to learn
Reason 3: Liquidity Mining Perks.
When you are providing liquidity to a DEX, one of the shortfalls is if gas is really high, you aren’t going to exit your position or enter a new position, even if the timing is perfect.
On Quickswap, as you provide liquidity, you are earning extremely valuable Quickswap tokens for various mining pairs as listed here, but also, you can enter and exit your positions whenever you want, costing you virtually nothing.
Think about that for a second.
You are totally allowed to second guess your liquidity positions without having to fret over the gas you have wasted for making a bad move or mistiming the market. When everyone is balking on a buy order, you can make them on Quickswap without having to worry about calculating the ensuing gas fees.
Reason 4: This DEX is going to be huge.
I will remind you that in October 2020, my SUSHI was worth like 80 cents. It was called a scam coin, degen, blah, blah… You can go and read my early articles to read me shilling SUSHI to everyone that turned up their noses to this “Vampire” DEX. Well cool, it’s worth $15–18 now and I mined all of it through LPs for virtually the gas it cost me to provide the liquidity which I also profited from.
Of all the L2s, Polygon (Matic) has the momentum, it has the connection to the Opensea NFT marketplace, it has staking, it has the Quickswap DEX. It has games with tradable assets. People can use this RIGHT NOW. It is not a ‘wait-and-see’ multibillion-dollar hopium den like many of these “ETH Killers” are. You can use it. Feel free to go click around and make some money.
This is not financial advice. This is just another Shillbo play that I am sharing for your infotainment. If you have any questions, you can find me on Twitter or various Discord groups.
For an in-depth step by step on providing liquidity with screenshots, please visit my article: Farmer’s Guide Part 2: Liquidity Pools