NEW: Buying DEFI5 on Quickswap (Polygon) with minimal transaction fees
We are pleased to announce our partnership with Quickswap. Through this partnership, Quickswap will become the premier place to buy Indexed products with minimal gas fees.
In order to bootstrap liquidity on Polygon (Matic), Quickswap has agreed to incentivize liquidity providers via QUICK rewards on an ongoing basis. These rewards started yesterday with 33 QUICK (〜US$8,250) being distributed daily to both DEFI5-ETH and DEFI5-QUICK liquidity providers. DEGEN, CC10 and other indices will follow suit.
We’re delighted about this partnership as it has always been our vision to make our indices available to all demographics rather than just whales, however — unfortunately — the recent increases in gas/transaction fees on the Ethereum network have priced out smaller traders.
How to buy DEFI5 on Quickswap
Quickswap runs on Polygon (previously Matic), an Ethereum sidechain that is many orders of magnitude cheaper than the Ethereum mainnet. Polygon is connected to Ethereum via a bridge that allows users to transfer their assets between the Polygon and Ethereum chains at any time.
To buy DEFI5 on Quickswap you need to have funds on Polygon, both to pay for the transaction cost (<$0.001 per trade) on the network level and to actually buy DEFI5 on Quickswap.
Option 1: Sending assets from Ethereum to Polygon
If you have some funds on Ethereum whether it’s ETH, MATIC, DEFI5 or any other token, you can simply send them over via the Matic bridge.
1) Connect to the Polygon bridge with your Ethereum wallet (e.g Metamask).
2) Select the asset you want to send.
3) Specify the address you want to send to (if you wish to send to yourself, simply copy your Ethereum mainnet address).
4) Confirm and wait.
Shortly after the transfer has been confirmed on Ethereum mainnet you should receive your funds on Polygon — you’re now ready to buy DEFI5 on Quickswap!
If you have already used Uniswap or other decentralized exchanges in the past you’ll find the process for purchasing DEFI5 is very straightforward.
When you connect your wallet to Quickswap, you will see a “Switch to Matic” button at the top right of the page. After you hit this button, Metamask will open and ask you to switch network (picture below).
Once you’re connected to the Polygon network, you’re ready to buy DEFI5 or any other token available on Quickswap with the funds that you transferred from the Ethereum chain.
Even tiny trades like the one pictured below are perfectly feasible, thanks to low transaction fees on Polygon!
Option 2: Onboarding to Matic via credit card or bank transfer
If you don’t have any funds on Ethereum and want to go straight to Matic you can purchase MATIC, USDC or DAI using a credit card or bank transfer through Ramp.network.
Ramp is a fiat on-ramp provider that sells select crypto assets and sends them straight to your non-custodial wallet. Before you pay you will have to specify where you want the purchased assets to be sent to, namely your wallet address.
Becoming a Liquidity Provider for DEFI5 and earn QUICK rewards
Step1: Deposit liquidity
If you want to provide liquidity on either of the DEFI5-ETH or DEFI5-QUICK pairs on Quickswap, you have to deposit the two assets in equal weights into the pool. The equal weight calculation is done automatically by the UI.
For example, if you click on the “MAX” button for ETH, the interface will tell you how much DEFI5 you have to add. Next, you have to hit the “Supply” button and go through the confirmation steps in Metamask.
Step 2: Stake LP tokens
Once you have successfully deposited your assets into the trading pool you will automatically receive so-called “LP tokens”. LP tokens prove how much assets you own in the pool and allow you to withdraw your assets whenever you want by sending them back. Their dollar value goes up as the trading pool accrues swap fees.
Now if you want to take part in the QUICK reward program, you will need to stake your LP tokens. To do this, navigate to the QUICK page (link in the navigation bar) and you’ll see the DEFI5 pools on the second page.
Click on “Deposit” twice before you can finally deposit your LP tokens and confirm the process in your Metamask wallet. As soon as the transaction is confirmed on the Polygon network, you will start earning QUICK rewards.
Have fun experimenting with the Polygon network! :-)