In the DeFi hype, new projects are emerging every day. One of them is a new decentralised trading venue on Polkadot. The Ethereum competitor is taking big steps forward and is now providing the first decentralised exchange on Polkadot.
First Polkadot DEX launched
Today was the official launch of the Polkastarter DEX. The platform is 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 its first liquidity pool offering rewards for exchanging 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 DEX?
Although Polkastarter is entering an already crowded DEX ecosystem, it will offer new features such as cross-chain pools, support for any asset, fixed swap pools and a secure listed pool.
It will also allow projects to list tokens at a fixed price. This Crypto Nation Pro should help ensure less volatility at launch, as prices will be maintained as long as the initial pool of tokens remains.
DEX already has a growing list of partners that include secure data transfer platform Shyft Network, Solidity programming language Moonbeam Network, automated liquidity provider Orion Protocol, API service provider Covalent and open source oracle platform Decentralised Information Asset (DIA).
Institutional investor Digital Finance Group has also pledged financial support for the platform.
Polkadot, which operates the new DEX, has openly stated that it is targeting Ethereum and wants to „go far beyond the current ERC-20 standard“.
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Polkastarter’s native POLS token reached $0.85 USD shortly after launching in September. But like most new DeFi tokens, there was a sharp sell-off afterwards.
Now that DEX is finally going live, the POLS price has also risen. Overall, the token has gained just under 100% since the beginning of December. Polkadot’s native DOT token is relatively unchanged since peaking above $6.30 in early September.
We look forward to seeing how the coming weeks and months will affect Polkadot and its various decentralised applications.