Polkaswap Decentralized Exchange Review

Polkaswap is a non-custodial, cross-chain AMM DEX protocol built on the SORA network. It helps traders swap tokens hinged on Polkadot and Kusama relay chains, Kusama and Polkadot parachains, and blockchains directly linked through bridges. The exchange gets rid of intermediaries, allowing you to trade faster. 

Polkaswap overview

Here is a summary of the ecosystem’s key features: 

• Open source

The vendor makes us aware that Polkaswap is a community project that allows other developers to contribute to the code utilizing the BSD 4-clause license. 

• Boundless liquidity

Many liquidity sources are mixed under a common liquidity aggregation algorithm by Polkaswap. Therefore, the exchange is able to function completely on-chain, in a trustless and decentralized manner. 

• Polkaswap tokens

The native token of this DEX (PSWAP) was developed by community governance through voting on its release. It is used to reward liquidity providers on the platform, and is burned with transactions, so its supply reduces with time. 

How does Polkaswap work?

The DEX allows you to do the following:

• Swap tokens from various networks
• Bridge assets
• Provide liquidity pools
• Farm tokens

What can you buy on Polkaswap?

These are the assets you can trade with on the platform:

• Polkaswap (PSWAP)
• SORA Validator Token (VAL)
• SORA (XOR)
• Aave (AAVE)
• Alpha Finance (ALPHA)
• Aragon (ANT)
• Binance USD (BUSD)
• Bitmax Token (BTMX)
• Orion Protocol (ORN)
• Alchemix (ALCX)
• Akropolis (AKRO)
• Polymath Network (POLY)
• QuarkChain (QKC)
• StaFi (RFIS)
• Augur (REP)
• SuperFarm (SUPER)
• Telcoin (TEL)
• TitanSwap (TITAN)
• Allen Worlds (TLM)
• and more

Is Polkaswap safe?

Polkaswap may be considered safe since it doesn’t have centralized servers, which third-parties can hack and access your personal info. By eliminating intermediaries, the platform ensures that traders interact directly, hence reducing security risks. The vendor discloses that Polkaswap’s protocol smart contract was audited by Tevora and found to be secure and up to date. Nevertheless, there is no guarantee that bugs will be absent in the future. Liquidity provision also presents the risk of impermanent loss.

Polkaswap fees, compatible wallets, and transactions

Polkaswap supports a single wallet only—SORA Wallet. Some activities you conduct on the exchange will demand that you pay certain amounts of fees. For instance, there is a 0.3% fee to be paid in XOR for each trade you engage in. Polkaswap will deduct the fees from the trade itself, so you are not required to hold XOR. The platform will convert the fees to PSWAP immediately and burn them. 

What are the ways to trade on Polkaswap?

There are a variety of trading options available on this DEX: 

• Swapping

You are allowed to swap tokens from different networks, including Polkadot, Kusama, SORA, and Ethereum. 

• Liquidity provision

Polkaswap permits users to create and provide liquidity pools and earn a small percent of the exchange fees whenever other traders use their pool.

• Trading 

With this DEX, it is possible to trade against many liquidity sources under a custom liquidity aggregation algorithm. This algorithm is capable of combining liquidity from different sources, such as order books, AMM DEXs, or other API-driven sources. This eventually assists users in finding the best value for their swap.   

• Buying XOR to earn PSWAP

When you purchase XOR using DAI, DOT, ETH, or KSM from the token bonding curve, you qualify to earn PSWAP. This, in turn, helps grow the SORA ecosystem and collateralize the bonding curve. 

• Market making

Users who engage in market making rebates and have at least 500,000 transactions with about 1 XOR in every transaction stand to earn PSWAP tokens.  

Customer support

Customer support is provided through blog articles, FAQs, and various social media platforms like Twitter, Facebook, and YouTube.

Should you trade with Polkaswap?