From the very beginning, QuickSwap’s goal has been not only to launch the Polygon ecosystem’s leading DEX but also to build out a complete product hub around it to support the entire Polygon DeFi scene.
QuickSwap has now added yet another feather to the dragon’s cap with the launch of QuickPerps, our new fully decentralised Perpetual Exchange. On QuickPerps, dragons can now trade perpetual swap contracts for supported cryptocurrencies with up to 50x leverage, all in a decentralised and permissionless environment on Polygon zkEVM. At launch, QuickPerps is supporting the following tokens $MATIC, $ETH, $BTC, $USDC, $USDT, and $DAI.
Plus there are huge incentives for early users such as high rewards, perk NFTs, trading fees, and more!
For the first time, you can trade perpetual swap contracts for your digital assets on-chain via QuickSwap while maintaining full custody of your funds. Talk about staying true to the ethos of decentralisation!
Trustless, permissionless perpetual trading at its finest! To learn more, read on below — we’ve got plenty of deets to go around!
TL;DR
- QuickSwap has launched QuickPerps, a brand new decentralised Perpetual Exchange, to enable perpetual trading on Polygon zkEVM.
- Support for Polygon PoS is also being explored.
- Perpetual swap contracts allow users to bet on the future price of supported digital assets, and to go long or short by increasing their position size. Unlike traditional futures contracts, perpetual contracts do not expire, and allow for the most flexible trading experience.
- QuickSwap’s decentralised Perpetual Exchange provides additional advantages to traders as well, including auto-compounding rewards, cross-usable assets, advancing trading and chart interfaces, a fee-sharing model, and more.
- At the end of this blog, a simple tutorial provides step-by-step instructions to help you get started with QuickPerps’ perpetual swap contracts.
How Do Perpetual Swap Contracts Work?
Much like futures contracts, perpetual swap contracts allow traders to speculate on the future price of a digital asset. What makes perpetual trading unique is that it doesn’t have expiration dates, meaning positions can be held indefinitely.
All assets are cross-usable when initiating trades on QuickSwap. Our Perpetual Exchange system allows users to open long or short positions by using any supported asset as collateral and vice versa where you can receive any supported asset when closing your position.
Let’s assume that a user wants to bet on the future price of $MATIC through the QuickSwap interface using the maximum amount of leverage (50x). If you open a long or short position and provide $100 (in any supported token) as collateral, you’ll be able to borrow up to $5,000 worth of $MATIC ($100 multiplied by 50 as your leverage). This means you can open a $MATIC long or short position by depositing $ETH but receive $USDC when exiting your position, for example.
Trading perpetual contracts can be a great way to gain more exposure to an asset, as less capital is required to initiate the trade. It’s also important to understand that futures trading can also carry greater risk, as there are liquidation thresholds that are more likely to be hit as your leverage increases.
How Does QuickPerps Work?
QuickPerps is a decentralised Perpetual Exchange on Polygon designed to complement the low-cost spot market on the QuickSwap DEX. On QuickPerps, perpetual contracts swaps are powered by a multi-asset liquidity pool called $QLP. Unlike on centralised perpetual exchanges, assets in the QuickPerps liquidity pool are contributed and owned by a distributed community of LPs who receive $QLP tokens in exchange for their capital. $QLP is an index token that represents a designated stake of the total capital in the multi-asset liquidity pool. Users may exchange their $QLP for assets at any time.
QuickPerps users deposit collateral in one or more supported assets and may borrow up to 50x the value of their collateral from the liquidity pool indexed by $QLP. Users may stake $QLP to receive a portion of trading fees and $QUICK farming rewards on the platform.
Unique QuickPerps Features
Needless to say, perpetual contracts are a major game-changer for the derivatives space. In just the same way, QuickSwap’s Perpetual Exchange is a pivotal product within the perpetual sector. The platform is bringing a number of innovative features to shake up the market
- No Price Impact Users can open and close positions without impacting price. Users can finally kiss slippage goodbye, and get the best price on their perpetual trades.
- Compound Function When users earn rewards, they are auto-compounded (reinvested) back into the main liquidity pool, effectively increasing users’ position sizes without requiring extra transactions or running up the gas meter. At present, QuickPerps is the only Perpetual Exchange offering this feature.
- Cross-Usable Assets Users can open leverage positions for one token using another as collateral. For instance, a user may deposit $WBTC as collateral to take a long position on $MATIC. When closing a position, users can also receive funds denominated in any supported asset on limit, stop loss, and take-profit orders.
- TradingView Pro: When trading on QuickPerps, users get access to advanced charts, analytics, and more directly through QuickSwap’s simple, intuitive interface.
- Pyth Price API & API3 Oracles QuickSwap’s Perpetual Exchange employs advanced, real-time price and data feeds to provide an ultra-smooth trading experience.
- Live Decentralised Charting Get access to live charting with only 1- to 2-second latency.
- Unilevel Referral System A Subgraph will be implemented for a Unilevel referral system.
- Fee-Sharing Model Swap aggregators will benefit from a fee-sharing model where QuickSwap tracks and reimburses a portion of collected fees sourced from the 1inch DEX aggregator.
How to Trade Perpetuals on QuickSwap Tutorial
On QuickSwap’s intuitive user interface, you can seamlessly open a perpetual swap contract in seconds.
But if you want to start slow, have a look through QuickPerps’ step-by-step guide, so you can go long and short like a pro
1. Go to https//perps.quickswap.exchange/ and connect your Web3 wallet
2. Under the Trade tab, navigate to the right and click Long (we will be opening a long position in this example, but the process is identical for opening a short position)
3. Enter the token and amount you want to pay in & then open a position with — we will use $ETH in this example. Move the leverage slider until you reach the desired amount of leverage you want to use.
Click Enable Leverage and confirm the transaction in your wallet.
4. Next, click Long ETH.
5. Read over the final details and confirm the transaction in your wallet.
6. It’s really that easy! You’ve now opened a perpetual swap contract & are on your way to being a QuickPerps pro!
Happy trading, frens!