Decentralized Exchange (DEX) Quipuswap Is Live On Tezos

Quipuswap is the second DEX that is live on Tezos. A DEX is an exchange that is deployed on a decentralized blockchain to enable traders to buy and sell cryptocurrency, without the need to be dependent on a third party.

Liquidity for trading tokens is provided by holders of cryptocurrency that fix their tokens in a smart contract for specific trading pairs.

In exchange, the liquidity providers receive a percentage of the trading fees. Before you consider providing liquidity, make sure you fully understand what it entails, what the possible risks are, and for example: what impermanent loss is.

There are risks, so make sure you do a thorough amount of research, using several sources. You could start researching permanent loss here.

When providing liquidity in XTZ, you can delegate your XTZ, while you add it to a liquidity pool. This means you can simultaneously earn staking rewards, and a percentage of trading fees.

Quipuswap distinguishes itself from the already existing DEX on Tezos called “Dexter” in two ways:

– On Dexter, users can not add token pairs. This is done by the Dexter team. But on Quipuswap, any token pair can be added.

“Since the protocol is decentralized, any user can list a token on the exchange and provide initial liquidity.”

This means that if you would like to see certain trading pairs go live on Quipuswap, you can list them yourself. We know that kUSD can use some counter pairs besides XTZ. So, these can be created on Quipuswap now. And bringing your favorite ERC20 token to Quipuswap could be an option soon.

BenderLabs announced “Wrap Protocol” to be launched in early 2021, which will enable you to wrap your ERC20 tokens into the Tezos token standard FA2.

Quipuswap could be the DEX to create pairs for these wrapped ERC20’s.

– XTZ that is provided in Quipuswap liquidity pools can be delegated to a baker. This is also possible on Dexter and allows liquidity providers to continue to earn staking rewards, while they earn transaction fees from traders.

What is different on Quipuswap, is the fact that the selection of bakers to delegate your XTZ to, is decentralized. Users will be able to vote for bakers to delegate to and ban unreliable bakers from the delegation process in Quipuswap.

Wallets

The following wallets are currently supported for Quipuswap: Temple, Spire, Galleon and Kukai.

Quipiswap is created by Madfish.solutions

Madfish.solutions is a blockchain development company that creates open-source projects for the Tezos DeFi ecosystem. Some of the existing projects are Temple wallet and Sol2Ligo. 

QuipuSwap development is driven by three core principles: security, decentralization, and scalability. It serves as a standalone project, and at the same time, as an indispensable tool for the future  DeFi solutions developed on the Tezos blockchain.

The external security audit was conducted by LeastAuthority, the company that published audit reports for Ethereum, Metamask, and other Tezos projects.

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