We construct the action of the quantum group U_v(sl_n) by the natural correspondences in the equivariant localized $K$-theory of the Laumon based Quasiflags' moduli spaces. The resulting module is the universal Verma module. We construct geometrically the Shapovalov scalar product and the Whittaker vectors. It follows that a certain generating function of the characters of the global sections of the structure sheaves of the Laumon moduli spaces satisfies a $v$-difference analogue of the quantum Toda lattice system, reproving the main theorem of Givental-Lee. The similar constructions are performed for the affine Lie agebra \hat{ sl}_n.
Categories: math.AG hep-th math.RT