Bridge Mutual are proud to partner with Quickswap, a layer 2 decentralized exchange and automated market maker (AMM) built on the Polygon network. The collaboration allows Quickswap users to purchase insurance against future smart contract hacks, bugs or exploits.
QuickSwap, a fork of Uniswap, was launched in October 2020. QuickSwap is a layer 2 Decentralized Exchange that was released four months after Polygon’s mainnet went live. QuickSwap uses the AMM model to create liquidity pools of tokens that users can access to swap. Anybody can start providing liquidity by depositing a pair of coins in equal value via the QuickSwap smart contract. QuickSwap’s AMM model rewards liquidity providers with a 0.3% fee shared proportionally based on their contributions.
Quickswap version 3 is scheduled for launch in early October. It is a newly upgraded version of the platform. Quickswap V3 protocol offers concentrated liquidity similar to UniSwap V3, but will be more efficient because it provides dynamic fees that adjust based on volatility. Instead of the 0.3% trading fee, the new V3 DEXs will offer variable rates. The average swap on Quickswap V3 is expected to be between 0.1% and 0.15%.
When traders swap from one stable to another stable, the fee will be low because they aren’t volatile assets. When traders swap between more volatile assets, the fee will be higher to decrease the risk of Impermanent Loss (IL) for liquidity providers. Quickswap V3’s dynamic fees seek to find an optimal balance between traders’ and liquidity providers.
Further, in the V3 system, LP prices are no longer pegged to the last trade price but to their own curve that reflects the LP’s preferences instead. Users trade against the combined liquidity of all LPs without an additional gas cost per LP. The LPs split trading fees at a pro rata price range according to the amount they contributed to this range. Compared to V2 AMMs, LPs need to provide less capital.
Bridge Mutual’s partnership with Quickswap will offer polygon users protection against potential hacks and exploits. The DeFi market has become an attractive target for hackers interested in stealing assets and investments. The number of hacks and exploits surged to over $2.1 billion in 2022, and shows no sign of slowing down. Bridge and Quickswap share a collective mission to accelerate the growth of a secure, safe, and productive decentralized finance ecosystem. With this partnership, Bridge intends to establish a less speculative environment on the new upcoming Quickswap V3 platform, so that users can use it without worrying about external threats.
QuickSwap is a permissionless decentralized exchange, powered by Polygon’s Layer 2 scalability infrastructure. Incorporating a community-focused governance structure and a fair token distribution model, QuickSwap is empowering traders while removing the costly barriers to entry to DEXs for the general crypto user.
About Bridge Mutual
Bridge Mutual is a decentralized, p2p/p2b discretionary risk coverage platform that provides coverage for stablecoins, centralized exchanges, and smart contracts. Its platform allows users to provide coverage, decide on policy payouts, share profit, and get compensated for adjudicating claims.