Polkaswap

What is PolkaSwap?

PolkaSwap, The DEX for the Interoperable Future, is a non-custodial, cross-chain AMM DEX protocol facilitating token swaps based on Polkadot and Kusama relay chains, parachains, and blockchains connected via bridges. Here's a breakdown of its key features:

• Faster Trading: PolkaSwap removes trusted intermediaries, enabling faster trading by utilizing an open-source codebase under the BSD 4-clause license, allowing collaborative development within the community.
• Boundless Liquidity: Combining multiple liquidity sources through a common liquidity aggregation algorithm, PolkaSwap operates trustlessly and decentralized on-chain. Liquidity sources include DEXs, order books, and API-driven sources, with contributions welcomed to expand liquidity sources.
• Swap Any Token: Unlike traditional DEXs, PolkaSwap supports tokens from the Polkadot ecosystem and other blockchains. Users can create, list, and trade their own tokens on the SORA network, leveraging Parity Substrate for scalability and cost-efficiency.
• Become a SORA Validator: By validating transactions on the SORA network, users can earn rewards while securing the network and decentralized apps like PolkaSwap.
• Connect a Chain to SORA: Through the HASHI bridge protocol, users can expand the decentralized economy by connecting more chains to SORA and PolkaSwap, enhancing interoperability within the crypto ecosystem.

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Recent Video Interview

Main points of the interview:

• Introduced PolkaSwap as a key decentralized exchange (DEX) for substrate-based tokens within the Sora ecosystem.
• PolkaSwap aims to facilitate easy trading of diverse substrate tokens with $30 million in total value locked (TVL) since its April 2021 launch.
• The platform integrates with Sora’s stablecoin XST USD, ensuring liquidity and efficient trading rates.
• PolkaSwap’s role in enhancing interoperability and fostering growth within the Polkadot and Kusama ecosystems.

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PSWAP Tokens

PSWAP is the native token of PolkaSwap and the SORA Network, primarily used to reward liquidity providers. Operating on a deflationary model, PSWAP is subject to burning through transaction fees, with rewards distributed based on burned tokens. This model ensures a sustainable tokenomics structure for the PolkaSwap ecosystem.

Governed by community votes, PSWAP serves as a utility and governance token, rewarding liquidity providers. Transaction fees are used to buy back and burn PSWAP, with rewards distributed proportionally. PSWAP has a deflationary model, with the reward distribution adjusting over time.

What Makes PolkaSwap Unique?

PolkaSwap stands out in the DeFi landscape by focusing on the Polkadot ecosystem, offering faster trading without intermediaries. Built on the Substrate network, PolkaSwap ensures interoperability between multiple blockchains, supporting a wide range of tokens. Moreover, its implementation of a Token Bonding Curve enhances liquidity and mitigates manipulation risks. Users can also earn rewards by supplying liquidity to PolkaSwap pools, earning it comparisons to Uniswap in the Polkadot ecosystem.

How Does PolkaSwap Work?

PolkaSwap's architecture allows it to obtain liquidity from both within and outside the Polkadot ecosystem. Within Polkadot, the SORA Network's parachain enables seamless asset trades. Outside Polkadot, the HASHI Bridge connects to third-party blockchains like Ethereum, with plans for further integrations in the future.

Team Background

Makoto Takemiya, CEO and Co-Founder of SORAMITSU, brings valuable experience from his tenure as a research engineer at ATR's Department of Neuroinformatics and his involvement in numerous blockchain projects. Ryu Okada, Co-Founder and Chairman of SORAMITSU, enriches the leadership with expertise garnered from consulting and entrepreneurship ventures. The Polkaswap project commenced in June 2020, initiated by SORAMITSU with funding from the Web3 Foundation.

Presently, Polkaswap operates as a fully decentralized endeavor, allowing users to propose developments through Request for Proposals (RFP). Teams with requisite expertise can also propose changes, potentially earning rewards for successful implementations in runtime upgrades. This participatory model fosters community engagement and contributes to the ongoing success of Polkaswap and the SORA network.

Project Development

Polkaswap has recently unveiled its fully decentralized on-chain order book on the mainnet, marking a significant milestone in its evolution into a hybrid exchange that integrates with its AMM swap functionality. This move distinguishes Polkaswap by pioneering secure blockchain-based data handling, thereby setting a new standard in genuine decentralized finance.

Key features of the on-chain order book include market orders for instant trade execution at optimal prices, limit orders allowing users to set and execute trades at preferred prices, and real-time updates enabling users to stay informed about market conditions with a slight delay per block due to on-chain processing. Additionally, the platform offers convenient widgets for tracking order history and market trades, providing users with valuable insights for informed decision-making.

Polkaswap Price Analysis

As of November 25 2024 Polkaswap has a marketcap of $696K. This is {{percentagefromath}} from its all time high of $0.880116. In terms of its tokenomics, there's a total supply of 10B with 35% currently outstanding. Keep in mind Polkaswap has a fully diluted value of $2M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.