In the DeFi hype, new projects are created every day. One of them is a new decentralized trading post on Polkadot. The Ethereum competitor is making great strides and is now providing the first decentralized exchange on Polkadot.
First Polkadot DEX launched
Today was the official start of the DEX polka starter. The platform was designed for cross-blockchain token pools and auctions with the aim of enabling projects to raise capital on the Polkadot network.
Polkastarter was officially announced in September when the project listed its native POLS token on Uniswap. It has now gone live with the first liquidity pool offering rewards for swapping ETH for POLS.
There are two other pools still in the testing phase to offer swaps with SpiderDAO, an online privacy-based project.
What are the advantages of the DEX?
Although Polkastarter is entering an already crowded DEX ecosystem, it will add new features like cross-chain pools, support for any asset, fixed swap pools, and a secure, listed pool.
It also allows projects to list tokens at a fixed price. This should help ensure less volatility at launch as prices will be maintained as long as the original inventory of tokens remains.
DEX already has a growing list of partners, including the secure data transfer platform Shyft Network, the Moonbeam Network, which deals with the Solidity programming language, the Orion Protocol automated liquidity provider, the API service provider Covalent and the open source Oracle -Decentralized Information Asset (DIA) platform.
Institutional investor Digital Finance Group has also pledged financial support for the platform.
Polkadot, which operates the new DEX, has openly stated that it targets Ethereum and wants to „go well beyond the current ERC-20 standard.“
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Polkastarter’s native POLS token hit a price of USD 0.85 shortly after it launched in September. But like most of the new DeFi tokens, there was a strong sell-off afterwards.
Now that DEX is finally going live, the POLS price has also risen. Overall, the token has achieved almost 100% since the beginning of December. Polkadot’s native DOT token has been relatively unchanged since peaking above $ 6.30 in early September.
We are curious how the coming weeks and months will affect Polkadot and the various decentralized applications.