Amid DeFi Boom Layer 2 Decentralized Exchanges are Beginning to Emerge

By: Fahad
October 19, 2020 5:41 PM UTC
Quickswap

 

QuickSwap is the latest decentralized exchange to make an appearance in the DeFi space. QuickSwap is essentially a fork of Uniswap built on the Matic Network, which makes it a layer 2 decentralized exchange. Decentralized exchanges have many unique features that traders in the cryptocurrency market appreciate. Layer 2 decentralized exchanges have all the features of a regular DEX, and a few additional features which will be covered in this article.

Decentralized Exchange Features

Quickswap is a decentralized exchange so users will be able to use it without having to create an account or go through any KYC procedures. Not having to create an account or doing any KYC is thought to be beneficial by many traders because it allows them to maintain their anonymity and trade with privacy.

Another interesting feature of QuickSwap and all other decentralized exchanges are non-custodial wallets. A non-custodial wallet is your personal hardware or software wallet that you can connect to an exchange whenever you want to make a trade. Non-custodial wallets are believed by many traders to be a more secure way to trade because it allows them to keep all their assets in their wallets while they are trading. There are many benefits of using non-custodial wallets but the most popular one is that the exchange does not have access to your funds and therefore cannot freeze them. Keep in mind that there are also downsides to using non-custodial wallets such as the entire security of your funds is in your hands, so you have to be careful when using them.

Permissionless listing is a popular feature among many decentralized exchanges including QuickSwap. Even though most decentralized exchanges offer permissionless listings, there are some that do not have this feature such as Bancor and IDEX. Permissionless listing just means that any cryptocurrency can be listed on the exchange by anyone who wants to list there. For example, if someone wanted to list some new coin that is not already listed on QuickSwap, they are free to do so.

Layer 2 Decentralized Exchange Features

As one of the very few layer 2 decentralized exchanges in existence QuickSwap has some unique features that are not available on other DEXes. Since Quickswap is built on Matic Network it has the ability to perform transactions at lightning speeds. According to the team behind QuickSwap transactions made on the platform will generally take only a second to be completed, which when compared to the 2 minutes it will take for an average transaction on most decentralized exchanges is literally 120 times faster.

Another feature unique to layer 2 exchanges such as QuickSwap are the significantly lower gas fees. As of writing this the gas fees on Ethereum are sitting at 96 Gwei for an average transaction, which roughly translates into $0.8 USD. Most people would agree that 80 cents is a very modest and fair fee, but according to the team behind QuickSwap the fees on their platform are even lower than that. From a report on QuickSwap’s official Medium the gas fees on their platform are just $0.000002 USD.

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