Created on the Polkadot Web 3.0 platform, Polkadex was created with the sole and primary purpose of bringing together the features of centralized and decentralized crypto exchanges.
Polkadex developers aim to provide a trustless peer-to-peer system for exchanging crypto assets for both crypto newcomers and veteran investors. Polkadex delivers a platform that is completely trustless and features asset management for traders, bridges for transferring assets between Ethereum and Polkadot and trading bots.
Reliable Cross-chain Transfer
One of the key features of any good crypto asset exchange platform is the ability to seamlessly transfer asset classes from one chain to another. The developers have petitioned Polkadot to become a Parachain of it and thus reduce the cost of transferring assets from one chain in the Polkadot network to another.
Similarly, Snowfork will seamlessly transition assets from the ERC-20 token standard into the Polkadex blocks. Integrating liquidity providers without peering into user accounts is not possible for Ethereum Smart contract based DeFi applications. Polkadex, on the other hand, has developed technology to solve this liquidity problem without integrating user accounts from these providers.
On Chain Trading Bots
High-frequency trading of crypto assets is still not possible with existing DeFi technology. Polkadex has combined the security aspect of centralized exchanges and the accessibility aspect of decentralized exchanges.
Zero trading fees and easily accessible API ports allow traders to come and go with ease. Trading bots can easily function in this environment where the bottlenecks for high frequency trading such as front running and huge transfer fees have been eliminated.
In addition, multiple hot wallets can be connected to the chain to create a safe space to trade assets without the risk of actually opening up the funds to hackers and other malicious actors. Trading in the current DeFi space requires investors to withdraw funds from cold accounts and transfer them to hot wallets. Polkadex order book allows traders to leave the funds in the exchange making high-frequency trading seamless and bot friendly.
Polkadex orderbook is the primary product developed by Polkadex developers. Combining the ease of trading feature of centralized exchanges and the security provided by public verification feature of decentralized exchanges, Polkadex order book is a unique product in the market.
Every other decentralized exchange in the market is not agile enough to have an order book model. Few who adopt this trading model do these trades off-chain, creating a single point of attack.
Polkadex has developed a layer 2 encryption of the Trusted Encryption environment on top of the order book. This encryption layer generates cryptographic evidence when a transaction takes place. If the trader attempts to extort funds from the account holder, the Encryption environment will invalidate the trade. This unique feature allows the account holder to allow third parties to conduct high frequency trading with their funds and also allows them to invest securely in liquidity pools.
Polkadex is a revolutionary product set to change the face of the crypto trading industry.
Polkadex IDO pallet allows different projects to set up tokens exactly like Ethereum chain and with one click it can be assimilated into the Polkadot parachain environment. Fundraising for these IDOs is also streamlined and very easy in the Polkadot environment.
Polkadex is one of the few exchanges that allows users to buy crypto assets directly with FIAT.
Furthermore, the Know Your Customer (KYC) protocol is often a very invasive procedure and many crypto asset holders want as much privacy as possible. Polkadex lets the user store the information in their wallets instead of the exchange, decentralizing the process.
Following the launch of Polkadex on the Mainnet, NFTs will be introduced which will ‘gamify’ the asset trading environment, making trading more exciting for users.
In most crypto projects, introducing upgrades generally leads to hard forks. Polkadex developers have thought a lot about this disruption and have decided to develop Polkadex protocol in a way that upgrades will not result in hard forks.
PDEX, Polkadex’s native token has a total supply of 20 million with 9.81% or 1,963,860 PDEX as the initial circulation supply. PDEX’s total stock can range from 18 million to 22 million. However, it is programmed to drift back to 20 million PDEX in total over the long term. Should the current total supply of tokens exceed the 20 million mark, the Polkadex mechanism will burn transaction costs to create deflationary pressure on the total token supply.
In addition, the Polkadex team is developing other innovative and robust mechanisms to burn PDEX from the Polkadex IDO Pallet and Orderbook, which will be revealed at a later date. In essence, the availability of fire mechanisms will ensure that the token supply on the network is regulated without necessarily user intervention.
Distribution of Tokens
A total of 9% or 1.8 million of the total PDEX stock is reserved for the founders and the wider Polkadex team. While 20% of these tokens will be released 12 months after the launch of the Polkadex mainnet, the remaining 80% of the tokens will be awarded quarterly over the next 12 months.
Polkadex Step-by-step plan
The journey began in the third quarter of fiscal year 2020. The first step was to get the project funded by Web 3.0 foundation. It was an arduous process, but once the grant was pushed through, a timeline was drawn up by the developers with the refactoring of the Polkadot protocol and the documented code published.
The next milestone came in the fourth quarter of the fiscal year 2020. The website was launched and along with the publication of the white paper, the developers presented Polkadex to the general public. The first version of the Testnet was launched.
Testnet version 2.0 was launched in February 2021. Then the first public sale of Polkadex token was held by April of 2021 shortly followed by Testnet version 3.0 launched by June of the same year. Public validity of any crypto project is very important to its success.
Polkadex Mainnet saw its launch in September 2021 and Polkadex had already staked more than 50 validators and half a million PDEX tokens on the Mainnet.
In the remaining months of 2021 and Q1 2022, a few key milestones are to be reached by the project, such as the launch of dApps 9Orderbook, PolkaIDO, Polkapool) on top of the Polkadex network and the parachain auctions.
In the course of 2022, the developers also plan to introduce various financial instruments such as margin lending, futures and options to make Polkadex a platform suitable for investors of a sophisticated nature. Polkadex’s pebble consensus protocol will then be updated, making it an advanced investment vehicle. The developers plan to finalize the fine tuning of the protocol by the third quarter of 2022.
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