When it comes to trading on Quipuswap, there is quite a bit to know. For starters, there are five different types of users on the platform including liquidity providers, traders, bakers, developers and voters. Each of these users has its own set of responsibilities and each type of account will have its own features. For someone wanting to use the platform to trade, it is recommended to set up a “Trader” account.
Quipuswap is a decentralized exchange of Tezos platform-based coins and the cryptocurrency XTZ. A decentralized exchange is a peer-to-peer (P2P) marketplace that connects cryptocurrency buyers and sellers. This method eliminates any intermediaries being involved in the transaction. Instead, the transaction completion solely relies on self-executing smart contracts. Liquidity providers can earn money derived from swap fees and baker’s rewards. Everything is governed by the shareholders.
There are five types of users that make up the Quipuswap network. A quick breakdown of each will provide further information and understanding to Quipuswap.
These users are provided with incentives to contribute more tokens to public asset pools.
The name is an accurate description of their position. Traders swap these tokens for another for the cost of a fee. The fee goes to the liquidity providers.
The bakers encourage the liquidity providers to vote for them, by offering different incentives.
Quipuswap is used by the developers to incorporate smart contracts directly to influence new interactions with tokens, trading interfaces, retail occurrences, and more.
Voters use their shares to cast their ballot for their favorite baker or to keep any malicious contributors at bay.
Important to know before beginning any interactions with Quipuswap you will need to have a Tezos wallet. There are many wallets available offering different options to suit the needs of all users. The wallet will be where you can store the Tezos (XTZ) that you purchase.
After purchasing your tokens and storing them in a wallet, you are ready to fully engage using Quipuswap. Now for the steps to take to begin trading.
It may then take up to 2 minutes for the transaction confirmation on the blockchain. Once you receive confirmation, congratulations on your first swap as a trader.
If you wish to be a Liquidity Provider, hereafter referred to as LP. An LP makes money through the spread and swap. They create the market for the buyers and sellers and make a fee for the transaction. Anyone can become an LP. Using the Quipuswap exchange, you can become an LP for a pool by depositing the equivalent value of each underlying token in return for pool tokens of the same standard of the deposited token. These tokens track the shares of the LPs, and they can be redeemed at any time for underlying assets. Shares are important and play a key role in voting for favorite bakers and likewise voting against others. Rewards collected from the bakers are then distributed equitably among the LP shareholders. Each LP’s portion is determined according to the duration and amount of their holdings.
To add liquidity on Quipuswap is as simple as swapping discussed previously.
Quipuswap is designed for easy user interaction. The use of this exchange platform has seen incredible growth and will continue flourishing after more developments. Keep your eyes open for future advancements and updates.
