How to provide $PLOT & $USDC liquidity on QuickSwap and earn $QUICK

PlotX
PlotX
Apr 23 · 4 min read

PlotX has partnered with Quickswap to facilitate super cheap, easy and quick DEX trading for $PLOT. The partnership opens avenues to grow $PLOT liquidity and allow users to trade $PLOT at lightning speed with little to no gas fee.

Let’s explore the step-by-step guide on how to provide liquidity in one of the $PLOT pool on QuickSwap:

Who are Liquidity Providers (LP) on QuickSwap?

Liquidity Providers can be anyone who is able to equally supply 2 tokens in a pool for other people to trade against. Each time someone trade’s against the pooled assets, liquidity providers earn a 0.03% fee of the trade. Higher trading volume of the pooled asset results in high fees collected by the Liquidity Providers.

How does one provide liquidity on QuickSwap?

To provide liquidity, two primary requirements are-

  1. Tokens on the Polygon (Matic)

QuickSwap being the fork of Uniswap is a Layer 2 alternative of Uniswap. QuickSwap runs on Layer 2 Polygon network and operates almost identical to Uniswap but with no gas cost and lightning-fast speed.

To bridge $PLOT from Ethereum network to Polygon, you can use: https://docs.plotx.io/how-to-migrate-plot-to-polygon

2. Pool two tokens in equal supply of corresponding dollar amounts

For pooling assets, you need to pool two tokens in equal dollar amount supply. For example, if you need to provide liquidity in the PLOT/USDC pool you would need to supply:

500 PLOT = $100 (trading at $0.2)

100 USDC = $100 (pegged to $1)

There are two pools for $PLOT on QuickSwap:

You can provide liquidity to either of the two.

Staking LP tokens to earn $QUICK

After you have pooled your assets, you will receive Liquidity Provider (LP) tokens corresponding to that pool. For example, if you have provided liquidity to the PLOT-USDC pool, you will receive QUICK-V2 PLOT-USDC LP tokens. Generally, you can hold these LP tokens and earn a portion of trading fees collected from that pool. But, with the PlotX < > QuickSwap Liquidity Mining Program, you can stake your LP tokens to earn $QUICK on top of the portion of trading fees that you usually get.

To stake your LP tokens and earn $QUICK, navigate to the ‘Rewards’ section using this link, and find the liquidity mining programs for $PLOT pools. You can also use the links mentioned below.

It is imperative to know about the incentive structure of both pools before you stake your LP tokens. The incentive structure of these pools is as below:

PLOT-USDC Pool

Current Liquidity: $236k

The PLOT/USDC has a liquidity of $235k so far. 1 QUICK is distributed every day to the liquidity providers who stake their LP tokens in the liquidity mining program.

For example, if you provide liquidity of $400 to the PLOT-USDC pool and the current liquidity of the pool is $200k, then you would own 0.2% of the total pool liquidity. Now, let’s say that every participant of this pool is also staking their LP tokens in the PLOT-USDC Liquidity Mining Program. This means that you would get 0.2% of 1 QUICK every day, that is, 0.002 QUICK every day.

Depending on the current price of $QUICK and your share of the liquidity pool, you can calculate the APY you would get using the following formula:

APY = (Liquidity you provided to the pool / Total liquidity in the pool) * 1 QUICK * 365 days * Price of 1 QUICK

PLOT/QUICK

Current Liquidity: $262k

The PLOT-QUICK has a liquidity of $262k so far. 1.5 QUICK are distributed every day to the liquidity providers who stake their LP tokens in the liquidity mining program.

For example, if you provide liquidity of $400 to the PLOT-QUICK pool and the current liquidity of the pool is $200k, then you would own 0.2% of the total pool liquidity. Now, let’s say that every participant of this pool is also staking their LP tokens in the PLOT-USDC Liquidity Mining Program. This means that you would get 0.2% of 1.5 QUICK every day, that is, 0.003 QUICK every day.

Depending on the current price of $QUICK and your share of the liquidity pool, you can calculate the APY you would get using the following formula:

APY = (Liquidity you provided to the pool / Total liquidity in liquidity pool) * 1.5 QUICK * 365 days * Price of 1 QUICK

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