AMM DEXs are undoubtedly the cornerstones for the DeFi industry. They bring the whole industry together to facilitate digital asset transfers and create liquidity. But no one would argue that the high-gas fees and network congestion on popular blockchain networks are major turn-offs for people. This is why it might be time for layer-2 DEXs like QuickSwap to shine. Today, we’re in conversation with QuickSwap’s co-founder Sameep Singhania about the motivations behind the project and how it can improve the user experience within DEXs.
1. Hi Sameep! Thank you for joining us today. Before jumping into our conversation about QuickSwap, we’d like to know more about the mind behind the project. Please introduce yourself and how you got involved with the blockchain space.
Hi! Thanks for having me on board. To start off, I’d say that I am a software engineer and blockchain developer by profession. I have a Bachelor’s in Computer Science Engineering and I believe my profound love for working on exciting software projects is what led me to this field. Then, in 2017 I left my full-time as a software developer at a reputed firm to become a freelance developer. I felt that working with various different companies as a freelancer would give me much-needed exposure. Soon enough, I was building smart contracts and tokens for emerging blockchain businesses.
During this time, I was fortunate enough to land a project with OpenBazaar that was an online decentralized marketplace. I spent 18 months working on this project and was fully involved in its developmental efforts. Then, I also closely worked with Paraswap and helped in the development of its smart contracts and core services. I also worked on other projects which needed layer-2 level scalability. It was this time when I came into contact with Polygon and worked with them to optimize their solution.
After gaining significant experience in the blockchain space, I decided it was time to start my own venture, and this led to the creation of QuickSwap.
2. The advent of decentralized exchanges really changed the game for DeFi. But, what significant problems do you think today’s popular DEXs have and what is the need for a layer-2 DEX?
During my time as a freelance developer, I closely observed the rise of AMM DEXs. They emerged as a non-custodial way of facilitating the transfer of assets and creating liquidity within DeFi. But, as the number of users increased, the problems with DEXs started to emerge. DEXs are housed on blockchain networks limited in terms of scalability. And this is the primary cause for problems like network congestion and high gas fees that are emptying users' wallets.
The best way to overcome this problem is to build DEX layer-2 solutions that are built for scalability. That’s where the idea of QuickSwap came from.
We wanted to create an AMM DEX that could alleviate the existing problems and provide the user experience that was originally promised.
3. There’s a lot being said about layer-2 solutions these days. While some believe they are the solution to the blockchain trilemma, others think they complicate the blockchain architecture. What’s your take on this and how do you believe Polygon stands out in this realm?
I actually believe layer-2 solutions uncomplicate the blockchain space by evading the need for multiple independent blockchain networks. I mean, why create an entirely new blockchain when you can leverage the power of the existing network and enhance it further? For instance, if we look at the Ethereum ecosystem, it is swarming with millions of users and innovative projects. If we create a whole new blockchain network to solve the problems of Ethereum, then this existing ecosystem is lost. And this is where layer-2 solutions hit the bull's eye. They capture the potential of the existing chain and build on it to create an overall better experience.
When it comes to Polygon, however, it is not just about creating a layer-2 side chain for Ethereum. Polygon aims to transform Ethereum into an internet of interconnected blockchains that are independent of each other and yet can collaborate to overcome the problems of the mainnet. Together, these chains can process millions of transactions per second, resulting in limitless scalability.
4. What significant user experience and functionality improvements can users experience on QuickSwap? How do you think QuickSwap will affect DeFi in the long run?
Well, of course, QuickSwap’s main differentiating factor is that it’s on Polygon layer-2. When compared to layer-1 DEXs, QuickSwap is highly scalable and operates at a tiny fraction of the transaction costs. Moreover, QuickSwap is a direct fork of Uniswap. This means that QuickSwap holds all of Uniswap’s best characteristics and improves upon them with low gas fees and a better user experience. For reference, a fast transaction that could cost $40 with Uniswap costs only $0.001 on QuickSwap.
As a layer-2 DEX, QuickSwap can also easily be integrated with other blockchain networks in the future and could be the key for interoperability within DeFi. Our interface is quite beginner-friendly so new DeFi users won’t struggle to navigate QuickSwap.
5. What are your views on the current state of DeFi and how do you view the evolution of new versions of DeFi in the form of DeFi 2.0?
The DeFi industry has seen its fair share of ups and downs, but as a whole, it is maturing and gearing up for exponential growth. DeFi is home to some of the most innovative projects and rapid technological developments. The Ethereum ecosystem alone has over four million DeFi users, and the volume of assets locked in DeFi is constantly growing. Because of this, investors are now eyeing DeFi and their investments created a steady flow of capital in the decentralized market.
This influx of capital has opened a world of possibilities within DeFi and the industry is leaving no stone unturned to ensure mainstream adoption. We now have a myriad of projects emerging to solve the problems with today’s DeFi protocols. This gives way to the next phases of DeFi called DeFi 2.0.
I believe, DeFi 2.0 will bring more traditional financial products like index funds, derivatives, and securities into the DeFi market to appeal to all kinds of investors. We could see a rise in interoperability solutions and DeFi could also be integrated within blockchain gaming to offer NFT staking and other products to boost the play-to-earn model.
6. Lastly, what do think about the recently imposed crypto tax in India? Do you think it will discourage crypto use or encourage it, now that the government is willing to offer recognition?
Well! The government has imposed a hefty tax of 30% on digital asset transactions. While on one hand, the taxation is a step towards the recognition of cryptocurrencies, on the other, it could discourage crypto use. Traders could be forced to go back to the stock market where taxes are considerably lesser. As a result, crypto adoption rates within the country could drop. But, with the official crypto bill yet to be passed, we’re hopeful for a better outcome.