What is polka swap (PSWAP)?
Polkaswap is a decentralized exchange (DEX) designed for an interoperable decentralized financial future (DeFi). So the platform’s plan has always been to collect as many assets from as many chains as possible. Polkadot will greatly simplify this process by providing a Relay Chain Host, a cross-chain messaging protocol also known as XCMP, and Scheduled Execution Zones (SPREE). However, in order to be able to take full advantage of the above technologies, it is necessary to connect to the relay chain in the form of a parachain.
Parachain can be seen as fertile ground for independent economies to work and complete with their own native tokens if so desired. These specialized chains run in parallel and are fully interoperable with the rest of the Polkadot network thanks to the secure messaging with the relay chain. Therefore, getting a Slot.parachain location is important for any gamer looking to do custom calculations, store data, or run their own economy within the Polkadot ecosystem without paying heavy fees.
Kusama Network is faster than Polkadot for testing purposes. While there are many similarities, they are separate networks. Having a parachain location on one network doesn’t mean you can access the other.
What is polka swap?
Polkaswap is a hackless (custody) cross-chain AMM-DEX protocol for token swaps based on the Polkadot (and Kusama) network, Parachain and a bridged blockchain. The Polkaswap protocol effectively eliminates trustworthy intermediaries and offers the opportunity for faster transactions. Polkaswap is open source software that is licensed under Apache V2.
Polka swap screenshot
How does polka swap work?
Polkaswap is a DEX that can build multiple sources of liquidity according to a liquidity pooling algorithm. When traders need swap functionality, the liquidity pooling algorithm executes the order with the best offers from liquidity sources. Sources of liquidity can be AMM, order book or other algorithms. Since Polkaswap is an open source project, further sources of liquidity can be added through the development in the Polkaswap module.
Does Polkaswap have tokens?
Yes, Polkaswap has a token called PSWAP. Polkaswap enables users to create pools of liquidity for token trading pairs in Polkaswap and receive PSWAP rewards. Transaction fees are used to redeem and burn PSWAP. New PSWAPs are minted to reward liquidity providers, but in a deflationary manner as more PSWAPs are burned than new coins. The PSWAP token issuer will be a smart contract that distributes PSWAP according to logic programmed to encourage the growth of Polkaswap. In addition, XOR tokens are used to pay network transaction fees.
What is the use of the PSWAP token?
The PSWAP token is also an incentive for liquidity providers who use a deflationary model in terms of token supply. 0.3% fee of every transaction in Polkaswap DEX is used to redeem PSWAP. Some of these PSWAPs are allocated to the liquidity provider and some are burned to reduce supply. Initially, 100% of PSWAP buybacks will be allocated to liquidity providers, but over time that percentage will decrease as tokens are burned.
How is Sora (XOR) used in the Polkaswap protocol?
Polkaswap is built on the SORA network and SORA tokens (XOR) are used to pay gas / fees and provide liquidity on Polkaswap. XOR is a utility token for providing liquidity on Polkaswap as it is stable (minimizes temporary losses), highly liquid (thanks to market makers who use a token alignment curve) and neutral. With other projects in the Polkadot ecosystem, but using DOT and KSM as reserves.
How is the price on polka swap determined?
The design of the Polkaswap protocol allows for multiple sources of liquidity per token pair. Each source of liquidity has its own algorithm to determine the price. When a user requests the swap function, Polkaswap’s liquidity pooling algorithm executes the order using the best offers from liquidity sources.
Polkaswap has complete no permission required are not?
That’s right! The Polkaswap Protocol and its traders are uncensored and do not require approval. Technically, developers cannot stop or edit smart contracts in any way once they are deployed. The community and not the developers decide on the implementation of the developed code.
What is pool polka swap?
There will be different pools in Polkaswap. The platform will start with a classic 50/50 XYK pool and then add more pool technologies to give users a better trading experience. Polkaswap will have a liquidity pooling algorithm that will execute trades according to the best offer using multiple pools at the same time.
Is there a risk in using polka swap?
The smart contract of the Polkaswap protocol is checked and has the highest priority in terms of security. The code is checked by a professional company; However, future errors cannot be guaranteed. Do your own research and stay vigilant.
Compare DEXs above Polka swap and DEX on Ethereum
Multiple assets exist on multiple chains: Polkaswap has the potential to go beyond the current Ethereum DEX, with the ability to add tokens from the Polkadot ecosystem as well as from other blockchains to the exchange. Trading pairs on Polkaswap are not limited to ERC20 tokens like other DEXs, but to any blockchain that is connected to Polkadot. It has some standout features like:
Reduced gas fees: On the current Ethereum DEX, gas prices are inappropriately high for transactions and unsuitable for retailers. Transaction gas fees are lower when using the SORA network as the network with the core infrastructure using substrates is more scalable than Ethereum as it does not use an expensive PoW algorithm. Finally, the Polkadot architecture generally allows almost unlimited composability between blockchains, so the economic structure of the transaction volume scale can lower the cost of the architecture.
On-time transactions: If you are currently using DEXs on the Ethereum blockchain, you will find that these DEXs are too slow due to the delay between sending and validating a transaction. Polkaswap solves this by using substrates that are much more powerful than Ethereum. Going forward, the scalable and multithreaded architecture of Hyperledger Iroha v2 (written in the high-performance Rust language and the vote-based Sumeragi consensus algorithm) will provide fault tolerance and be able to validate tens of thousands of transactions within seconds, which is what Polkaswap users have to offer Experience that is more similar to trading on a CEX (centralized exchange) than on a current DEX.
Experienced team: Decentralized exchange protocols are often created by new, inexperienced developers. As we have seen with bZx, Balancer and dFund, hacks arise from errors in the intelligent contract logic. Developed by Japanese blockchain company Soramitsu, with the experience of developing digital currencies for the Central Bank of Cambodia, the company has ambitions to create a framework that meets the needs of DeFi applications that can be interoperable.
Percentage of tokens burned to make reward for liquidity providers on Polka swap
Like Uniswap, Polkaswap charges 0.3% transaction fee for each transaction. Transaction fees are used to redeem and burn PSWAP tokens. New PSWAP tokens are minted to reward liquidity providers. The reward for liquidity providers starts at 100% of the transaction fees burned and gradually decreases after 5 years to a fixed 35% of the tokens burned daily.
Polkaswap and Sora
Polkaswap works in the SORA network, has its own network and technology and is closely integrated with Polkadot. The goal of this hybrid solution is to have the best parts of the Polkadot technology and network while focusing as much as possible on the specific framework in DeFi.
Since the Polkadot relay chain does not handle smart contracts, Polkaswap needs to be built on a scalable and robust platform that allows the smart contract to connect to the Polkadot relay chain.
What is SORA?
SORA is both a new economic system and network that implements a new way of building blockchains in the form of parachains connected to the relay chain and the Polkadot ecosystem, with built-in tools focused on DeFi. SORA Network offers tools for decentralized applications (DApps) that use digital assets, such as atomic token swaps, token bridges with other blockchains and asset-related programmatic rule generation. In addition to Polkaswap, one of the main applications that run on SORA Network is the SORA decentralized economic system.
SORA NEO: New economic order
SORA operates as an autonomous virtual state managed by XOR holders through an inter-agency partition where token holders can vote to create and assign new tokens for efficient use in its ecosystem. The project is evolving based on macro research and the latest DeFi features.
SORA Network uses substrates and contains bridges to many other blockchains such as Ethereum and Bitcoin. SORA Network will have its own validators and it is planned to have its own parachains on Polkadot and Kusama.
SORA Network Parachains are like a compatible bridge platform for every substrate-based network. This framework will standardize the secure, direct interaction between polkadot parachains provided based on Substrate, Polkaswap and SORA Network. Such a design enables the connected parachain to be bridged with full safety. On the other hand, while this one uses Parachain relay chain security, the bridge security level is designed to be on par with Polkadot relay chain security.
The SORA Parachain Bridge is an extension of the Polkadot ecosystem and provides a new framework for building bridges and …