Polygon and it’s Layer2 technology has become a hot cake in cryptocurrency. Now housing over 40 Top-tier Dapps ranging from Gaming, DeFi, Social media etc. Polygons network is characterized by near $0 transaction fees that feel almost free and lightning fast transactions.
Today we are going to dive into DeFi (Decentralized finance) a little bit, and see how we can supply Liquidity to a Liquidity pool on QuickSwap– a decentralized Exchange (DEX) built on Layer2 Polygon, and earn from trading fees, as well as how to deposit QUICK LP (Liquidity provider) tokens to earn $QUICK token incentives. We are also going to see how to remove Liquidity from QuickSwap.
Setup Metamask to interact with the Matic mainnet by clicking on the top button that says “Matic mainnet” like in the image below. In your case it most likely would say “Ethereum mainnet”.
Click on that button, scroll down to Custom RPC and fill it like in the image below, and save.
Note: You need $Matic mainnet tokens to make transactions on the Matic mainnet. 1 $Matic is enough for over 100 transactions!
Lets send some tokens over from Ethereum mainnet to Matic mainnet. There are two ways we can do this:
- By withdrawing to Matic mainnet through AscendEX Exchange. See how to do that here. Or other popular Exchanges that support Polygon mainnet.
- Through official Matic web wallet.
Through official Matic Web Wallet
This is as easy as clicking a button. Visit the Matic web wallet: https://wallet.matic.network/
Login with Metamask, Wallet Connect, or Wallet link to view your Matic wallet Dashboard.
Click on the “Move funds to Matic Mainnet” button and select the token you want to send to Matic mainnet.
Be sure to set the Transfer Mode at the bottom to PoS Bridge so the transaction can complete quicker. Else you may have to wait a longer time if you select the Plasma Bridge. If the transfer mode is set to Plasma Bridge, click on the “Switch Bridge” option to select PoS Bridge.
Note: The default for transferring $Matic tokens is Plasma Bridge only. Withdrawals back to Ethereum mainnet take up to 7 days for $Matic tokens.
In this illustration we are transferring some Ethereum to Matic mainnet. Click on the transfer button and confirm the next set of transactions to proceed. In 7 minutes, we should have our mainnet $ETH visible on the wallet dashboard.
Now you have your coins on mainnet. you can now head over to QuickSwap to provide liquidity!
Connect your wallet and click on the “QUICK” tab at the top of the page. Select a pool you would like to join and click on Deposit. Lets join the QUICK/EASY pool.
The pools are changed every week, so don’t be confused if you see different token pairs on your first visit to QuickSwap.
Now Click the add liquidity button.
You would need both QUICK tokens and EASY tokens to supply liquidity for the pool. It’s a 50/50 ratio i.e If you are supplying $100 liquidity for USDT/USDC pair, you would need $50 worth of USDC and $50 worth of USDT to supply liquidity for that pair.
A button to supply the liquidity will appear if the Liquidity is balanced 50/50, Click on it to confirm the transaction.
Now that you have successfully supplied liquidity to the QUICK/EASY pool, you have also gotten QUICK LP tokens which you can further deposit to earn $QUICK token rewards. Click on the “QUICK” tab at the top of your page again, scroll down to the pool that you just added liquidity (In our case QUICK/EASY) and click the Deposit button.
Now you’d see an option to deposit your QUICK LP tokens at the bottom of the page.
Select all the available LP tokens and approve the transaction.
Congratulations! You have now supplied liquidity and earning from trading fees, also earning incentives in $QUICK tokens from your QUICK LP tokens. The next time you visit the “QUICK” tab you will be able to manage your funds (Check your profit, claim reward, withdraw or deposit more LP tokens).
NOW HOW DO I WITHDRAW LIQUIDITY AND GET MY COINS BACK?
Visit the “QUICK” tab, scroll to your pool and click the Manage button. At the bottom of the page you will see a “Withdraw” button.
Click on the withdraw button and confirm the transaction.
At the top of the page, click on “POOL“. You’d be able to see all your QUICK LP tokens that have not been deposited or have been withdrawn.
Note: Once you withdraw your QUICK LP tokens, you earn from trading fees but would not earn the $QUICK token incentives.
Then select “Remove”.
Choose 100% or Max to get the full value of you coins back.
Note: You will get the same value indicated in “Your liquidity deposits” in the image in Step 1. But you may get that value in a different ratio than when you first deposited (Depending on price movements and other factors), you might get less $QUICK tokens and more $EASY, or more $QUICK and less $EASY than when you first deposited.
Approve and confirm the transaction. Thanks to Polygons fast transaction speed you should receive your tokens in the blink of an eye, and the whole process cost almost nothing.0