Polkadex — Trading tools for Web3 and DeFi

Decentralized finance (DeFi) is becoming a new trend in the crypto community in the world. Defi with superior features can help extend blockchain usage from simple value transfers to more complex financial use cases. When it comes to projects built to stir the DeFi universe, Polkadex is a network far ahead of its competitors. This is the next generation decentralized exchange (DEX) for the DeFi ecosystem.

1. What is Polkadex?

  • Polkadex is a completely decentralized, peer-to-peer cryptocurrency exchange for the DeFi ecosystem running on a Substrate framework. Polkadex aims to provide users with the same trading functionality and centralized exchange performance (CEX), but with the added benefits of a better user experience and completely decentralized security.
  • Polkadex is unlocking current and future financial markets for everyone, connecting traditional money markets with a decentralized store of value and trust, thus preparing the world for an encrypted future. Polkadex innovates in the four core areas of decentralized security :

- Customer experience
- Transaction execution speed
- Property custody
- Creditial

2. Main features of Polkadex

  • Substrate software framework on Blockchain : As you know, the Substrate Blockchain Framework allows anyone to create application-specific blockchains without worrying about the technicality of block production and consensus. This allows Polkadex to create a dedicated blockchain for a decentralized exchange, purposefully built and configured to optimize the performance of the DEX.
  • Permanent liquidity algorithm : Previous Ethereum Smart Contracts allowed the creation of Defi services, but it was limited in terms of compute resources required for the normal functioning of the DEX:

- Not able to expand
- Cannot upgrade
- Not yet providing a good trading experience for users

Such limitations in computing resources have led to the proliferation of Automated Marketplace Creation (AMM) protocols such as Uniswap. With many DeFi platforms replicating the AMM model that has been successfully applied to Uniswap, arbitrage profits in such environments seem like a fertile ground with many opportunities, leading investors to line up. long to invest in projects that focus on mining liquidity and swap protocols.

While it looks appealing, this spread is ultimately an issue for arbitrage traders in protocols because of inherent liquidity problems. Polkadex is designed to consolidate the best features of a high-volume “centralized” exchange, such as the command book and AMM model popularized by the DEX, but under a single parachain connected to the Polkadot network.

  • Commit to offline state — Layer 2 scaling solutions :

As mentioned above, Polkadex using peer signatures combined with state commitments to the blockchain will essentially generate a snapshot of the state transition. This is part of the class 2 scaling mechanism designed and developed by the Polkadex team.

In Polkadex, different models and tools have been classified into two criteria:

- Orderbook, Trader Assets Management, Polkadot and Ethereum Bridge Mechanism, and on-chain market-making bots implemented On-Chain.
- Trading features such as market data aggregation, technical analysis indicators, storage and retrieval of transaction history, and all remaining exchange related features are available Off-Chain.

This allows us to increase transaction throughput and make the platform comparable to CEX’s efficiency, but with a truly decentralized infrastructure and no trust requirements.

  • Polkadex’s free trading mode :

Polkadex supports two types of trades at the beginning: Simple Limit and Market Orders. However, the platform will roll out the next complex algorithmic transaction as part of the product roadmap to be rolled out over the next few months.

Market-taking orders have a transaction fee of 0.2% and market-making orders have no transaction fees. In addition to transaction fees, 25% will be used for liquidity mining, 25% will be for administrative features and 50% will be for the Fund. With zero network fees, trading bots can freely interact with the order book without incurring network fees unlike Ethereum-based DEXs.

In the DEX world, front-running transactions happen a little differently. Professional traders with outstanding computational power and fast trading bots can easily apply front-running to make profitable trades.

By not charging transaction fees, Polkadex solves this problem. This innovation not only lost control of the order of execution but also eliminated the economic incentive to do so. It allows for faster trade execution times and also provides an equal opportunity for anyone to place a trade on the order book.

  • Solve liquidity problems :

Polkadex solves the liquidity problem by using two groundbreaking ideas: Perpetual liquidity mining in the AMM Pool and Layer 2 Scalability Solution for the order book.

As the name suggests, liquidity mining allows accounts to consistently earn interest for users providing liquidity based on how long they lock in funds.

Layer 2 scaling solution allows conventional market makers to bring liquidity to the DEX without incurring any fees, and also has a fast transaction interface ensuring that liquidity is rotated. continuity. Market makers can finally participate in a DEX to participate in profitable HFT activities.

As for tradable assets, there are two ways in which Polkadex can provide liquidity: Polkadot Parachain and Snowfork Unreliable Ethereum Bridge, connecting Polkadex to the Ethereum network.

3. Roadmap

4. Token Economics

5. The team

6. Conclusion

  • DeFi is a new and attractive option for large and well-established financial institutions, not just crypto enthusiasts. DeFi projects have recently been warmly received and are handling billions of dollars in daily transaction volumes. As DeF grows from a fledgling industry into a stable platform serving the broader financial community, DEX’s like Polkadex will foster that strong wave of inheritance and become the preeminent growth platform where traders conduct their own business.
  • Polkadex has competitive advantages that help us outperform other DEXs by implementing many of the first innovations in the market to differentiate us. Polkadex improves the user experience in the command book by using a layer 2 solution — Offline state commit. Besides, the Polkadex exchange extends multi-chain both on Ethereum and Polkadot based on Parachain and Bridge Chain, thus solving the problem of custody of money in the exchange.
  • The last and most important factor is the customer. Polkadex was created to be the number one DEX that all traders will use on Polkadot. We are honored to work with some of the leading investors, advisors and strategic partners in the industry who also share our vision for DeFi and recognize the groundbreaking work they do. I gained. We are fully confident that Polkadex will become more popular in the coming days due to our differentiated benefits allowing our customers to enjoy all the benefits of CEX, but with added benefits. is better user experience and completely decentralized security.

Website: https://www.polkadex.trade/

Twitter: https://twitter.com/polkadex

Telegram: https://t.me/Polkadex

Telegram ANN: https://t.me/PolkadexAnnouncements

Medium: https://kattana-trade.medium.com/

Thank you for reading !!!

Investor crypto / Advisor crypto / Reviewer / CM / My Twitter : twitter.com/honjerry1162