Need to know about Polkaswap project and PSWAP cryptocurrency

• What is Polkaswap?
• Salient features of Polkaswap
• Pros and cons of the Polkaswap . project
• Instructions for trading with PSWAP token
• Conclude

What is Polkaswap?

Polkaswap concept

Polkaswap is an open source, unsecured decentralized exchange protocol built on top of the Polkadot network via the Sora Network.

This is a DeFi project built on the Polkadot ecosystem exclusively designed to support faster transactions without any intermediaries to facilitate them. It also offers users the ability to monetize their assets by providing liquidity to its pools, which many refer to as 'liquidity mining'.

Polkaswap . Development Team

Polkaswap is a project currently being developed by Soramitsu with support from the Web3 Foundation Grant. Soramitsu is a Japan-based Blockchain company that is among the largest contributors to the Hyperledger Iroha project. They have also been involved in financial technology solutions for businesses, universities and other functions.

Polkaswap's development team is also the Sora Network's development team, including prominent names such as:

– Makoto Takemiya (CEO, Blockchain Engineer): Experienced in Blockchain, worked as a research engineer of Neuroinformatics.

– Ryu Okada (Co-Founder, President): Used to be a consultant for Deloitte, has a Japanese CPA certificate and was the Founder of an e-commerce startup.

– Ikkei Matsuda: (Co-Founder, Director): is the CEO of SARR, a launch company for high-tech startups and the CEO of Hokkaido Venture Capital.

– Kazumasa Miyazawa (Advisor): is the creator of the Edy cryptocurrency and a former board member of Rakuten Edy.

Polkaswap development team.

Polkaswap project development process

Q4/2020, launch Testnet with basic features. (Then swap and add liquidity.)

Q1/2021, launch Polkaswap Version 1 and Bridge Chain with Ethereum.

Currently, the project is in the launch phase of Mainnet Polkaswap v2 with advanced features.

The mechanism of action of Polkaswap

Polkaswap is a DEX capable of establishing multiple sources of liquidity according to a liquidity pooling algorithm. When traders call the swap function, the liquidity pooling algorithm executes the order using the best offers from liquidity sources. The source of liquidity can be expressed in the form of AMMs, order books or other algorithms. Since Polkaswap is an open source project, it will be possible to add more sources of liquidity, like a community, by growing inside the Polkaswap module. 

The mechanism of action of Polkaswap.

Polkaswap runs on Blockchain Sora Network, owns its own technology and network, and is especially tied to Polkadot (DOT). Polkaswap has a lot of liquidity pools that users can access through the platform. Initially, it implemented Pool 50/50 XYK, but more Pools will be opened soon. To ensure the best prices and smoother transactions, Polkaswap implements liquidity pooling algorithms. Simply put, it facilitates transactions using all the best available pools on the protocol at any given time.

Functions of PSWAP token

PSWAP is the Utility and Governance token of the Polkaswap platform. It performs the following main functions:

• Staking: used for Staking to provide liquidity, which means users can lock tokens to provide liquidity in Polkaswap trading pairs. In return, they earn more PSWAP as a reward for the staking process.
• Bonus: as mentioned, PSWAP will be used as a reward for traders. This reward will be calculated starting from 100% of transaction fees burned and gradually decreasing to a fixed level of 35% of tokens burned daily after 5 years.
• Payment of transaction fees: Polkaswap will charge 0.3% fee for each transaction. This fee is used to buy and burn PSWAP or newly mined PSWAP tokens.

Allocate PSWAP tokens

PSWAP tokens are allocated according to the following ratio:

• Pre Launch Reward: 6%
• Bonding Curve Token Reward: 25%
• Liquidity Bonus: 35%
• Market – Creating Reward: 4%
• Team: 30%

Basic information about PSWAP token

Price: 0.1149 USD (price updated at time of writing 06/15/2021)

Market capitalization: not yet updated

Total supply: 1.392 million tokens

CoinMarketCap ranking position: 3383

Salient features of Polkaswap

Payment speed

Through Substrate, Polkaswap can outperform other Blockchain networks. Hyperledger Iroha v2, a technology powered by Soramitsu, is also capable of supporting a voting-based consensus algorithm secured by a Byzantine fault-tolerant system. This ensures that consensus can be reached quickly without compromising the integrity of the chain.

Transaction costs

Transactions performed in Polkaswap are attached to the Polkadot chain . This means that Gas fees are lower compared to the Ethereum network. The Sora network also supports infrastructure using Substrate, allowing for a consensus mechanism that requires no mining.

Read more: What is Gas Limit? The most accurate way to calculate Ethereum Gas fees

Multi-chain token swap

Polkaswap has the ability to surpass the current Ethereum DEX limitation with the opportunity to add tokens from the Polkadot ecosystem as well as from other Blockchains to the exchange. This allows trading pairs on Polkaswap not to be limited to ERC20 tokens like other DEXs, but to any blockchain that can be linked to Polkadot.

Pros and cons of the Polkaswap . project

Advantage

• Built by a team experienced in DeFi . They are the team that develops solutions for central banks and many blockchain technologies including Kagome, Polkadot Host's C++ implementation, and Filecoin's C++ implementation. Soramitsu hopes to create a DeFi-compliant framework that can be interoperable on public Blockchains.
• Low transaction fees.
• Users can manage information by themselves, without going through intermediaries, but can transact directly using smart contracts.

Defect

• PSWAP is a non-Cross-Chain token for Ethereum, so it cannot be purchased through Ethereum-based DEX exchanges except Uniswap. 
• Support on few exchanges.

Instructions for trading with PSWAP token

Guide to owning PSWAP token

You want to own PSWAP token can apply one of the following ways:

• Provide liquidity on Sora.farm for rewards.  
• Buy directly on the Uniswap platform through the PSWAP/WETH trading pair.

Instructions for storing PSWAP tokens

Polkaswap is a token on the Sora platform, so you can store it on wallets that support this standard such as:

• Mobile app wallet like Fearless, PolkaWallet.
• Browser wallets like Polkawalletp js.

Exchanges that support buying and selling PSWAP tokens

Currently Uniswap is the only platform that supports transactions with PSWAP tokens.

Conclude

Polkadot is one of the next generation Blockchain projects that is worth considering. It overcomes many disadvantages of old projects such as: lack of economic ideals, running on a single Blockchain, high transaction fees, etc. But the ideality of the plan still needs to be tested in practice. . The application has been Testnet and will be released in the near future. Is the Polkaswap project a viable alternative? Let's wait with TraderH4 in the near future!

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