π¦Pools
Liquidity providing to pools on QuickSwap allows users to earn a 0.25% fee on trades proportional to their share of the pool. LPs are critical to the QuickSwap ecosystem, allowing participants within the ecosystem more seamlessly swap across ERC-20 tokens.
V2
When providing liquidity on V2, users simply deposit 2 tokens (each of an equal dollar value) to the respective pool. From there, no further action is needed - rewards are earned in the form of fees. This is the most standard form of liquidity providing & decentralised liquidity pools, similar to how other DEXs work at the basic level.
V3
V3 operates differently than V2 in that when users deposit their tokens into a pool, they need to select between 2 ranges (narrow or wide) for their liquidity. Once the tokens have been deposited & the LP position has been created, the LP needs to be manually adjusted if it falls out of the designated price range.
Although this process is more manual, it provides greater depth & capital efficiency when compared to V2.
V3 Active Liquidity Management
QuickSwap has integrated with Gamma to offer V3 active liquidity management to all LPs on V3. Instead of needing to manually adjust your LP position when prices fall out of range, Gamma's technology automatically rebalances your liquidity in range to ensure you're earning the highest amount of rewards while also removing the manual process that comes with V3.
Gamma also auto-compounds your rewards as time goes on, leaving your liquidity management on autopilot.
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