The previous DragonFi 2.0 article highlighted QuickSwap’s flagship products and integrations, which currently stand in the hundreds and continue to rank up in numbers as the DEX blossoms.
But what are the innovative core products and integrations powering the main operations behind the QuickSwap DEX? And how do they work in tandem to create an optimal UI/UX across the vast suite of Polygon integrations and products?
To answer these questions, it’s time for the big reveal of Pillar 4 on the DragonFi 2.0 journey: QuickSwap’s Key Innovative Products & Drivers.
Dragons have access to the most cutting edge tech on Polygon, all under the QuickSwap umbrella and powering the economic engine of this powerful DEX.
Let’s dive into the details.
Engines Powering the Dragon DEX
There are 3 main/core products and integrations that encompass the full range of user experiences on the QuickSwap DEX:
- Liquidity Hub
- CLOB DEX (Central Limit Order Book Decentralised Exchange)
- QuickPerps (Decentralised Perpetual Exchange)
All of these products not only operate on their own for DeFi users but also cross-pollinate with one another in different ways.
Continue reading to further explore the components and mechanics behind each of them.
Liquidity Hub: Driving Force Behind the Curtain
QuickSwap Liquidity Hub is a new optimisation layer above the DEX-AMM that aggregates liquidity to bring users:
- Better execution prices (less price impact)
- Zero gas swaps
- MEV protection (bots cannot front run trades)
At its core, Liquidity Hub powers the entire swap and trading process on the DEX, serving as the overarching umbrella where all of the action takes place. It provides users with the exact same trading UI/UX, but the mechanisms behind the scenes power more advanced features (as mentioned above).
Here’s how. Liquidity Hub taps into various liquidity sources on the backend called “Solvers.” Solvers are any DeFi entity or protocol that plug into QuickSwap’s API (i.e. 1inch, ParaSwap) that take a user's trade input and offer quotes - if the quote is better than what the V3 or V2 DEX would offer, then the trade will route through that particular Solver.
Best of all, users suffer no downside from Liquidity Hub - if it doesn’t provide the swap at a better price, the trade is instead executed on the AMM.
CLOB DEX: Advanced Trading UI At Your Fingertips
QuickSwap will be releasing a CLOB DEX that will revolutionise the trading interface on the DEX for the dragon community.
Most often found on CEXs (centralised exchanges), a CLOB model implements an orderbook where users can become makers and takers while fostering greater transparency to market participants, allowing them to view the market supply and demand (plus token quantities and prices) in order to make more calculated decisions.
Think of it as a database that organises and manages incoming buy and sell orders from users and participants, delineating the current on-chain supply and demand across the market.
Orders are submitted and matched in real-time as new orders are received, and the CLOB allows for more advanced orders such as limit orders, market orders, and stop orders.
An innovative, advanced product that redefines and optimises the ideal trading experience. Furthermore, it will be a complete redesign and upgrade for the QuickSwap DEX.
Let’s explore the key differences between a centralised and decentralised CLOB model:
QuickSwap users will soon have all of this available to them on Polygon PoS, with more chain integrations on the horizon.
QuickPerps: Perpetual Trading on Polygon
QuickSwap just recently launched QuickPerps: Falkor, a new and innovative decentralised Perpetual Exchange on Polygon PoS (Proof of Stake) allowing trades from 10-50x leverage with zero gas fees and a smooth user interface.
Users deposit funds into a “vault” on Falkor from the Polygon PoS network where they can then trade perpetual swaps on the Orderly Network.
No bridging and access to hundreds of millions in deep liquidity. Trustless and a seamless user experience.
With this new game-changing product, QuickSwap aims to dominate the perps trading space on Polygon PoS and other interconnected chains, delivering on all fronts for the most powerful mechanics, features, and user interface.
The existing QuickPerps version (built on Polygon zkEVM) is still live, and will be extended to other Layer 2 chains over time as QuickSwap deploys new Citadels.
Expanding Beyond Polygon: The Next Frontier
Now that you have an understanding of the powerhouse products encompassing key DEX operations, it’s time to take a glimpse into the future.
Since QuickSwap’s inception in 2020, the DEX has always been built on chains within the Polygon ecosystem domain.
Given that the industry has matured and other blockchain ecosystems are ripe with opportunity, QuickSwap is looking to expand its presence on new Layer 2s to drive adoption by taking a commanding lead in on-chain volume and TVL (Total Value Locked).
Dragons doing what they do best.
With the AggLayer also now live, there is tremendous potential for QuickSwap to tap into the overarching pool of unified liquidity and become a primary driver of value of even more interconnected ecosystems.
Big things are coming. Keep your eyes peeled for Pillar 5 of the DragonFi 2.0 journey.