Tezos DeFi Series Part 1 — How to use the DEX Quipuswap
In this series we explain you how to use Tezos ($XTZ) dezentralized finance. In this article we show you how to use the Tezos decentralized exchange Quipuswap.
What is the best decentralized exchange (DEX) on Tezos?
Currently Quipuswap is the best decentralized exchange using the Tezos blockchain protocol. For example you can swap your Tezos tokens or provide liquidity to the exchange’s liquidity pools. By providing liquidity you can earn passive interest as you get a share of every trade in the specific trading pair pool. Please note that trading on decentralized exchanges also bears some risks and can lead to a total loss of your coins. But as you are aware of the risks decentralized exchanges like Quipuswap can be a good way to generate passive income. If you just want to trade and swap one Tezos token to another just do so. The tutorial will show you both ways.
Let’s get started!
How to find the Quipuswap DEX?
The Tezos decentralized exchange Quipuswap can be found on the following website. No registration is needed!
What is needed to trade on Quipuswap?
Let us show you what you need to trade on the Tezos decentralized exchange.
- A Tezos wallet
- Tezos coin (XTZ)
What ist the best Tezos wallet to use the Tezos decentralized exchange Quipuswap?
The best Tezos wallet to use Quipuswap DEX is currently Temple (formerly called Thanos). Here is the link:
You can use it as a browser extension on Google Chrome or Brave browser. For additional security you can also link your hardware wallet like Ledger to the browser extension. This is recommended! Always secure your coins as good as possible!!! Follow the instructions of the wallet to set it up. Don’t forget to backup your wallet securely!
What is the best way to buy Tezos coins?
The best exchange (our opinion) to trade Tezos is Binance. You can use our link to Binance and get 10% trading discount and support this article. Just use the link below and register on Binance.
If you want to choose an other exchange, you can find below our ranking of the best Tezos exchanges:
This tutorial will show you how to buy Tezos on an exchange by using Binance as an example. You can also use an other exchange. The procedure will be slightly different, but almost the same if you choose a different exchange. Please note to always use secure exchanges and to do your own research. Using centralized exchanges also bears some risks and can lead to a loss of your coins. #notyourkeysnotyourcoins
How to fund your Tezos wallet?
First you need to buy Tezos coins on an exchange like Binance by using wire transfer, credit card or you can swap/exchange already purchased cryptocurrencies to Tezos. To do so you need to search for the Tezos markets.
Go to the markets section and search for “XTZ”. You can either choose fiat or crypto trading pairs.
Afterwards you can see the trading interface for the Tezos/USDT (Tether) market place on Binance. You can buy Tezos by using a limit or a market order. Please do your own research on the different order types and markets.
How to fund your Tezos Temple wallet?
After you bought some XTZ you can send them to your Temple web wallet.
First switch back to Temple by clicking on the browser extension icon. Afterwards create an account. You can create multiple accounts, but for now create your initial one and give it a name.
After you have created your wallet. You can deposit Tez to it. Just simply copy and paste your deposit address (your Tezos address) and send Tezos from the exchange to your Temple web wallet. Here you find your deposit address:
You deposit address looks like this: tz1ciA6yoZzctR1MEZnNDd23671z3ALhkEQn
!!Do not use our deposit address, unless you want to donate to us!! Always use your own! Always sent to addresses you know! If you send to a wrong address your coins will be lost, so be sure and check at least twice!
Go to the withdraw section on your exchange (like Binance) and withdraw your purchased coins to your web wallet.
Enter your deposit address and the amount to withdraw. Click on “withdraw”.
After completing the step you can see your balance within your Temple wallet:
Please note that the transaction needs to be confirmed on the blockchain, this can take a little time.
How to get started with Quipuswap?
As you now have Tezos on your web wallet you can get started with Quipuswap!
First go to Quipuswap:
Now you need to connect your Temple web wallet to Quipuswap. Therefore click on “Connect Temple”.
Next, you need to give Quipuswap the permission to connect. Select the wallet and click on “Connect”.
Your wallet is now connected, you can see your balance in the right upper corner.
TRADING TUTORIAL: How to trade tokens on the Tezos decentralized exchange Quipuswap?
Now you have Tezos, you are connected to Quipuswap, so let’s start trading. This now the easiest part!
Use the “SWAP” section. Select the input and the output. In our example we will swap 4.5 Tezos for 0.00033879 Wrapped Bitcoin (wWBTC). Type in your input, the output will be prefilled. Select “Swap” to confirm your trade.
You need to conduct a Tezos transaction to interact with the underlying smart contract. The pop up to confirm the blockchain transaction will show up. Check the fees (these are blockchain transaction fees, not the fees of the wallet) and click on “Confirm”.
The transaction needs to be confirmed on the blockchain. Wait for the confirmation, you will see the message “Complete”.
🎉That’s it. Now you have swapped your first Tezos tokens. You can swap your Tezos to every coin which has an active liquidity pool on Quipuswap. Or swap any token back to Tezos.
PROVIDING LIQUIDITY TUTORIAL: How to provide liquidity to Quipuswap decentralized exchange (DEX)?
Providing liquidity is as easy as exchanging coins on Quipuswap. In the last section we bought Wrapped Bitcoin tokens (wWBTC). Now we can provide liquidity to the XTZ/wWBTC pool.
First you need to go to the “Invest” section and select “Add”. For providing liquidity you need both assets for the liquidity pool. Both assets need to have the same value in exchange to each other. That means the input of both assets needs to be equal depending on the current exchange rate.
Select the input you want to provide for liquidity. Confirm the blockchain transaction:
You now have a share of the liquidity pool. In the next section we will show you how to check it.
How to check your liquidity share on Quipuswap?
As we now have provided liquidity to the Quipuswap liquidity pool we can also check the stake or withdraw the stake again. That can be done in the “Invest” section via the tab “Remove”. You have to type in the pair first to select the correct liquidity pool. Your shares will automitcally be displayed.
You can see your pool share (here 3.8). And below you see your coins you can withdraw by removing your liquidity.
How to remove liquidity from Quipuswap?
In the “Invest” section you can select “Remove” and see your current pool share. You have to type in the pair first. Type in the amount of shares you want to withdraw from the liquidity pool. Click on “Remove Liquidity” to withdraw and confirm the transaction to be broadcasted to the Tezos blockchain.
That’s it. All you need to know! Happy Trading
What comes next?
This tutorial is one of the first explanations and walktroughs of the Tezos DeFi universe. The next series will be about other DeFi protocols on Tezos. The tutorials will be listed also here.
Part 2:
Follow us on Medium or Twitter for the next series and updates:
Medium:
Twitter:
For more information on Tezos and to find the best exchanges visit:
Kind regards
Tezard
— You shall not parse! —
Disclaimer: Please note that this article is only a technical review. There is no investment advice given here. Please note that investing in cryptocurrencies can involve high risks. The reviews are based on our opinion. Please verify the exchanges on your own. Buying and storing cryptocurrencies on an exchange involve risks. Please inform yourself on the risks of cryptocurrencies. The term “passive income” means that you will be rewarded with Tez by participating in the network. If you can earn money depends on the current market prices of the Tezos coin, which can not be foreseen. Also using centralized or decentralized exchanges can result in a total loss of your assets. Do your own research on everything!