The V3 audits will be finished in 30 days, and the integration should be finished somewhere in this year's third quarter. Swappers won't even be aware that they are utilizing V3 or V2 after the team has the V3 up and running thanks to the aggregator being created.

QuickSwap and the Algebra Team looking forward to an outstanding V3

When nearly 100% of the community agreed to move forward with a V3 "Concentrated Liquidity" model on June 28, 2022, QuickSwap made history. The team is excited to let you know that they are getting ready to launch the biggest overhaul in QuickSwap's history. Algebra is the development team behind the V3 license that QuickSwap acquired.

The future of DeFi is being built by QuickSwap with the help of this amazingly brilliant team and community.

The concentrated liquidity V3 version is helping QuickSwap regain most of the volume lost to competitors, will improve liquidity and give access to dynamic fees that change according to volatility and distribute capital within the Polygon ecosystem more effectively.

How does QuickSwap V3 Work?
Dynamic Fees
Similar to UniSwap V3, the V3 protocol uses concentrated liquidity, but it is more effective because it offers dynamic fees that change depending on volatility. QuickSwap is offering variable rates on the V3 DEX in place of the 0.3% trading fee that V2 DEXs impose.

The team estimates that the typical swap on the V3 DEX will range from 0.1% to 0.15%. Because they are not volatile assets, swapping between stables will incur a low cost, but switching between more volatile assets will incur a larger fee to reduce the risk of Impermanent Loss (IL) for liquidity providers.

As a result of UniSwap V3's trader-centric design, many liquidity providers encounter IL when there is market volatility. A survey found that within the investigated time period, 53% of LPs experienced financial losses on UniSwap V3. Dynamic costs in the QuickSwap concept determine the optimum compromise between the trader and the liquidity provider.

Theoretically, QuickSwap v3 should be more efficient than Uni V3. When the market is calm, traders will pay lower fees; during more turbulent periods, trades may be routed through the V2 pools.

The V3 audits will be finished in 30 days, and the integration should be finished somewhere in this year's third quarter. Swappers won't even be aware that they are utilizing V3 or V2 after the team has the V3 up and running thanks to the aggregator being created.

The QuickSwap aggregator has a lot of benefits:
Based on which has the best pricing through a mix of lowest fees, slippage, highest TVL, and arbitrage differences, different routes are used through V2 or V3. The trade can go through both V2 and V3 in a single swap. Smart pathing allows for the simultaneous usage of many V2 and V3 pools. To obtain the most productive, affordable, and slippage-free deals, a single trade may combine 2 or 3 pools from V2 and 2 or 3 pools from V3. This will greatly enhance the trading process and lower the cost of using QuickSwap, potentially increasing the volume by several multiples.
DEX swappers won't notice a difference other than the fact that V3 offers better rates and reduced trading costs per deal when compared to V2 over time, according to the creators. However, liquidity providers will undoubtedly have a different experience due to the fact that V3 calls for active money management, which is rather sophisticated for many consumers. Average liquidity providers will probably continue to utilize V2 for a while until a significant portion of volume has switched to V3 and users are compelled to become familiar with it.

QuickSwap produced instructions and tutorials for using V3. In order to further automate the procedure, the team is also in talks with projects that are developing concentrated liquidity management technologies. QuickSwap anticipates that most DEXs will utilize DAOs, concentrated liquidity, and liquidity management technologies in the future.

The Algebra Code
Liquidity providers don't need to actively transfer their liquidity between pools in order to get the best rewards because Algebra's dynamic pricing model automatically determines the cost based on a variety of variables. Instead, liquidity is exchanged depending on the precise price range that the LP selects, resulting in the best market-rate fees and the least amount of temporary loss. Even small LPs can profit because they can deploy their capital to favored price intervals to consolidate their funds and generate more fees.

The Algebra Code team will actively work on the V3 Model that QuickSwap will implement.

In return for granting Polygon and all upcoming chains powered by Polygon an exclusive license to exploit Algebra's focused liquidity model, Algebra will get the following:

A place in QuickSwap’s ecosystem, a portion (1.5%) of the trading fees collected from QuickSwap V3, V4 and any other Algebra-developed implementations, access to QuickSwap’s and LDA’s network of industry professionals and assistance with marketing and business development.

The near future
QuickSwap has launched their V3 Beta on the 12th of September, a few days after the V3 beta, the new Dragon's Lair will become live. Holders of New $QUICK will be able to stake their New QUICK to begin making money off of the trading commissions taken on the DEX.

The conversion and distribution of the trading fees to New QUICK stakers won't start, though, until V3 hits a daily trading volume of $1 million. Although it won't take long, stakers should be aware that it will take some time before they start getting paid.
They aim to encourage LPs to transfer their liquidity to V3 because it is so much more capital-efficient than V2. In order to receive a share of the V3 trading fees as well as QUICK incentives, liquidity providers will be able to select a pair, a range, and supply liquidity. Rewards from these pools will be given in New dQUICK. For the discovery of bugs affecting the V3 smart contracts, QuickSwap will pay a maximum bug bounty of $100,000. From the time the V3 beta is live until QuickSwap releases it on the mainnet, this bounty will be active.

In addition to the various new features they have already started implementing as they expand QuickSwap's DragonFi Ecosystem, the development team is launching V3 in an effort to recoup some of the volume lost to rivals. The biggest improvement QuickSwap has ever experienced is the implementation of Algebra's sophisticated V3 focused liquidity model.

Written By

Petrache Ionut

Oct 2, 2022