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Polkaswap is a decentralized exchange (DEX) designed for the interoperable future of decentralized finance (DeFi). So the platform’s plan has always been to pool as many assets from as many chains as possible. Polkadot will greatly simplify this process by providing a Host Relay Chain, a cross-chain message passing protocol, also known as XCMP, and timed execution zones. protected shareable (SPREE). However, 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 considered a fertile ground for independent economies to operate and complete with their own native tokens if desired. These specialized chains run in parallel and are fully interoperable with the rest of the Polkadot network through secure message passing with relay chains. Therefore, it is important that any player who wants to perform custom calculations, store data, or run their own economy in the Polkadot ecosystem without paying exorbitant fees gets a position. parachain location.

Kusama Network is designed to be faster than Polkadot for testing purposes. Although they have many similarities, they are separate networks. Having a parachain position on one network will not mean having access on the other.

What is Polkaswap?

Polkaswap is a non-custodial cross-chain AMM-DEX protocol for token swaps based on the Polkadot (and Kusama) network, parachain and blockchain connected via bridge. The Polkaswap protocol effectively eliminates intermediaries that require trust and provides faster trading opportunities. Polkaswap is open source software licensed under Apache V2.

How does Polkaswap work?

Polkaswap is a DEX capable of establishing multiple liquidity sources according to a liquidity aggregation algorithm. When traders request the swap function, the liquidity aggregation algorithm will execute the order using the best offers from liquidity sources. Liquidity sources can be AMMs, order books or other algorithms. Since Polkaswap is an open source project, it is possible to add more sources of liquidity by developing within the Polkaswap module.

Does Polkaswap have tokens?

Yes, Polkaswap has a token called PSWAP. Polkaswap allows users to create liquidity pools for token trading pairs in Polkaswap and receive PSWAP rewards. Transaction fees are used to redeem and burn PSWAP. New PSWAP is minted to reward liquidity providers, but is done in a deflationary manner as more PSWAP is burned than the amount of new mint. The PSWAP token issuer will be a smart contract that distributes PSWAP according to programmed logic to incentivize Polkaswap growth. Additionally, the XOR token will be used to pay network transaction fees.

What is the utility of the PSWAP token?

The PSWAP token also incentivizes liquidity providers, using a deflationary model relative to the token supply. 0.3% of the fee of each transaction in the Polkaswap DEX is used to redeem PSWAP. Part of these PSWAPs are allocated to liquidity providers and part is burned to reduce supply. Initially, 100% of PSWAP buybacks are allocated to liquidity providers, but over time this percentage gradually decreases with tokens being burned.

How is Sora (XOR) used in the Polkaswap protocol?

Polkaswap will be built on SORA Network and SORA token (XOR) will be used to pay gas/fees and provide liquidity on Polkaswap. XOR is a utility token for providing liquidity on Polkaswap because it is stable (minimizes temporary losses), has high liquidity (thanks to the market maker using a token bonding curve model), and is neutral with other projects in the Polkadot ecosystem but using DOT and KSM as reserves.

How is price determined on Polkaswap?

The design of the Polkaswap protocol allows for multiple sources of liquidity per token pair. Each liquidity source will have its own algorithm to determine the price. When users request swap functionality, Polkaswap’s liquidity aggregation algorithm will execute the order using the best offers from liquidity sources.

Is Polkaswap completely permissionless?

Correct! The Polkaswap protocol and traders are uncensored and permissionless. Technically, developers cannot stop or edit smart contracts in any way once they have been deployed. Deployment of developed code will be decided by the community and is not a decision of the developers.

What is Polkaswap Pool?

There will be many different pools in Polkaswap. The platform will start with the classic 50/50 XYK pool, then add more pool technologies to provide a better trading experience for users. Polkaswap will have a liquidity aggregation pipeline algorithm that executes transactions according to the best supply using multiple pools simultaneously.

Are there risks in using Polkaswap?

The Polkaswap protocol’s smart contracts will be audited and it is designed with security as a top priority. The code will be audited by a professional company; however, it cannot be guaranteed to be error-free in the future. Do your own research and always use caution.

Compare DEXs on Polkaswap and DEXs on Ethereum

Multiple assets exist on multiple chains: Polkaswap has the ability to go beyond the limits of the current Ethereum DEX with the opportunity to add tokens from the Polkadot ecosystem as well as from other blockchains to the exchange. In doing so, trading pairs on Polkaswap are not limited to ERC20 tokens like other DEXs, but to any blockchain that is being connected to Polkadot. It has some outstanding features such as:

Reduced gas fees: On the current Ethereum DEX, gas prices for transactions are unreasonably high and not suitable for retail traders. Transaction gas fees will be lower using SORA Network because the network has a core infrastructure using Substrate which is more scalable than Ethereum because it does not use the costly PoW algorithm. Finally, the Polkadot architecture as a whole allows for almost limitless composability between blockchains, so the economics of transaction volume scaling can make costs lower on the platform. ​Modern and scalable architecture.

On-Time Transactions: If you are currently using a DEX on the Ethereum blockchain, you will find that these DEXs are too slow because there is a delay between the time a transaction is sent and validated. Polkaswap solves this by using Substrate, which is much more performant than Ethereum. Going forward, the multithreaded and scalable architecture of Hyperledger Iroha v2 (written in the high-performance Rust language and Sumeragi voting-based consensus algorithm) will provide fault tolerance and capable of validating tens of thousands of transactions within seconds, providing Polkaswap users with an experience more similar to trading on a CEX (centralized exchange) than current DEXs.

Experienced team: Decentralized exchange protocols are often built by new, inexperienced developers. As we saw with bZx, Balancer, dFund, where hacks arose from smart contract logic errors. Developed by Japanese blockchain company Soramitsu, with experience developing the digital currency of Cambodia’s central bank, the company’s ambition is to create a framework that meets the needs of interoperable DeFi applications. Collaborate on multiple public blockchains.

PSWAP tokens

Percentage of tokens burned to reward liquidity providers on Polkaswap

Like Uniswap, Polkaswap will charge 0.3% trading fees for each transaction. Transaction fees are used to buy back and burn PSWAP tokens. New PSWAP tokens are minted to reward liquidity providers. Rewards for liquidity providers start at 100% of burned transaction fees and gradually decrease to a fixed 35% of daily token burn after 5 years.

Polkaswap and Sora

Polkaswap operates on SORA Network, has its own network and technology, and is intimately integrated with Polkadot. The aim of this hybrid solution is to have the best parts of the Polkadot technology and network, while focusing exclusively on the specific framework in DeFi.

Since Polkadot’s relay chain does not handle smart contracts, Polkaswap must be built on a scalable and robust platform that allows smart contracts to connect to Polkadot’s relay chain.

What is SORA?

SORA is both a new economic system and a network that implements a new way to build blockchain in the form of a parachain connected to the relay chain and Polkadot ecosystem, with integration tools focused on DeFi. SORA Network provides tools for decentralized applications (DApps) that use digital assets, such as atomic token swaps, token bridges to other blockchains, and asset-related programmatic rule creation digital. In addition to Polkaswap, one of the main applications running on SORA Network is the SORA decentralized economic system.

SORA NEO: New economic order

SORA operates as an autonomous virtual state, governed by XOR holders through a multi-authority partition, where token holders can vote to create and allocate new tokens for productive uses in its ecosystem. The project develops based on macro research and the latest DeFi features.

SORA architecture

SORA Network uses Substrate and includes bridges to many other blockchains, such as Ethereum and Bitcoin. SORA Network will have its own set of validators and is planned to have its own parachains on Polkadot and Kusama.

SORA Network’s parachains are like a compatible bridging plank for any Substrate-based network. This framework will standardize direct, secure interaction between Polkadot parachains deployed on Substrate, Polkaswap, and SORA Network. Such design allows bridging with full security of the connected parachain. On the other hand, while this parachain uses relay chain security, the level of bridge security is designed to be on par with Polkadot relay chain security.

The SORA parachain bridge is an innovation for the Polkadot ecosystem, providing a new framework for building bridges and parachains connected to the relay chain that could become a new standard. Additionally, any user of Hyperledger Iroha v2 (like some enterprise use cases) will also be able to leverage the parachain bridge at launch and communicate with any Substrate chain. This makes the process of moving assets between many existing use cases and the overall Polkadot/Kusama ecosystem much simpler.

At the start, SORA Network will be completely built using Substrate. However, going forward, SORA and Polkaswap will leverage the Hyperledger Iroha 2 framework using Iroha Special Instructions. This is a set of tools for creating powerful and composable applications for digital assets. Functions such as asset creation based on certain event triggers, atomic token swaps, and many more useful functions for DeFi applications are integrated into HL Iroha 2. Sumeragi consensus algorithm achieves consensus The consensus is Byzantine fault-tolerant without using a PoW algorithm, instead adopting a vote-based block proposal and transaction completion method that can achieve results within seconds. This means a transaction throughput capacity of up to 20,000 TPS is possible.

This faster type of consensus will provide a better user experience, close to the speed of CEX, for Polkaswap users, while the overall Polkadot architecture allows for almost limitless composability between chains.

Parachain SORA auction participation rewards for Polkaswap

While the exact amount of KSM or DOT required to gain parachain placement is unknown, without community support, the ability to gain parachain placement on Kusama and Polkadot will be extremely difficult . The role of the community is therefore crucial in the search for parachain placement and is reflected in the generous incentives provided in the auction.

Polkaswap is setting aside up to 30% of the total PSWAP supply (30 million PSWAP) to reward the community for helping the SORA network win and maintain parachain auctions on Kusama and Polkadot for the first 6 years. After 6 years, SORA Parliament will fund future parachain leases.

While the specifics may change as Polkaswap learns more, in general they want to use up to 10% of PSWAP (10 million tokens) for proportional distribution to community members who agree Support their tokens for 2 years throughout the upcoming parachain auctions on Kusama and Polkadot.

If the winning bid in the auction is not successful, the contributor’s tokens will be refunded. In this case, Polkaswap will repeat the process at the next scheduled auction until it successfully wins the parachain.

The National Bank of Cambodia has officially launched a new payment system based on distributed ledger technology (DLT), according to Reuters.

Together with Japan-based blockchain company Soramitsu, the Bank is developing an initiative called Project Bakong. Accordingly, the Central Bank of Cambodia has launched a payment system built on Hyperledger Iroha.

At a conference earlier this year, Chea Serey, director general of the National Bank of Cambodia, described the platform as a “payments backbone” rather than a central bank digital currency. She also said the two goals of the project are to provide Cambodian migrant workers with a better solution to send money back home and to encourage more use of the local currency riel. In Cambodia, more than 90% of the economy is based on the US dollar.

To use the system, people will have to register with one of the institutions in a network of about 20 banks in Cambodia. Registration will require submitting a government ID and phone number.

Speaking on Wednesday at an official launch event, Serey also said she hopes Bakong will “promote social welfare and prevent the spread of epidemics by facilitating electronic payments easily.” seamless way without the need for cash,” The Bangkok Post reported.