There is lots of room for improvement in the world of crypto trading. Polkadex is creating a trading platform that may be the model for the next generation in crypto trading.
By combining the liquidity advantages of a centralized exchange with the safety of a decentralized exchange, Polkadex gives its users the best of both worlds. No longer do traders need to risk their tokens at CEXs – or accept low liquidity at DEXs.
Until now, crypto traders needed to make a decision. If they wanted to have rock bottom prices and rapid trade execution, it was difficult to match a centralized exchange. For the highest level of user safety, decentralized exchanges were the best choice.
Now, DeFi has a solution to this problem, and Polkadex is making it happen on the Polkadot blockchain. Instead of choosing to accept lower liquidity on a decentralized exchange, Polkadex is creating a platform that is similar to a platform like Sushiswap, but also offers traders an orderbook-based exchange.
Polkadex Decentralized Trading
Crypto trading should be simple – and the technology that makes it work needs to be easy to use. Polkadex is working on a trading platform that combines the best aspects of both CeFi and DeFi – but it also is making it easy to use.
It is simple to see that Polkadex is going to deliver CEX-like features with the security of a DEX in a single platform, which makes it a prime candidate for adoption by a new generation of investors and traders.
Over the past decade, stock trading platforms like RobinHood have demonstrated that there is a massive demand for simple to use trading solutions, which bodes well for Polkadex.
The Next Wave of Crypto Demand
It might come as a surprise – but the vast majority of people globally still aren’t crypto savvy. Many people know what Bitcoin is – but they don’t own or use it.
Its true. Some people are worried about the lack of regulations in the cryptosphere, while others simply don’t understand decentralized digital assets as an asset class.
According to data compiled by Statista earlier this year, only 6% of the people in the USA used cryptos in 2020, and in other developed nations, like Germany and Japan, that figure was even lower.
There are major investors who are jumping into cryptos, but for the masses, tokens are still not on their radar.
In simple terms, crypto adoption is still at very low levels, which means that the market for crypto-based services, like a next-generation exchange, is amazing.
Polkadex Offers a Superior Idea
Exchanges like Pancakeswap, Sushiswap and Uniswap have a great idea – let people trade the way they want!
The problem is that in many cases, making trades on a DEX like Uniswap can be pretty expensive, which makes picking up a few tokens impossible for smaller investors.
While CEXs offer lower transaction costs, using a CEX has its own set of issues.
Polkadex has solutions to all these problems – and a whole lot more.
Polkadex has created a plan that should see a solid platform launch later in 2021. The features it has packed into its development plan are impressive.
Here are some of the things that make Polkadex stand out in the DEX space:
- High-Frequency Trading: Polkadex supports the most popular trading bots and allows its users to take full advantage of high-frequency trading opportunities.
- Polkadex IDO pallet: With the Polkadex IDO pallet, token projects can create ERC-20 like tokens that feature built-in support for parachain transfers – as well as one-click listing in the Polkadex Orderbook.
- Polkadex Fiat: The platform allows users to buy crypto with fiat currencies via the Polkadex Orderbook. It acts as an on-ramp for fiat currency to the world of crypto.
- Decentralized KYC Option: Polkadex created a decentralized the KYC process for users that stores data on wallets – not the Polkadex platform. Polkadex takes user privacy seriously – and this shows how they make it happen in the real world. x
- Polkadex NFTs: The NFT ecosystem on the platform will be gamified which will make it far more engaging. Polkadex wants this to be functional right after the Mainnet is live.
- New Token Generation: Any tokens generated in Polkadex will feature native support for cross-chain transfers to other parachains, as well as other networks connected to the Polkadex ecosystem.
- High liquidity: Polkadex will deliver institutional level liquidity with the help of a decentralized KYC system that makes DEX trading competitive with CEX liquidity.
- Forkless Upgrade: Polkadex upgrades for new features bridges with new blockchains bug fixes so hard forks are a thing of the past!
It is simple to see that Polkadex has created a lot more than a simple DEX. In addition to creating a great development plan, Polkadex is well on its way to a successful launch.
Polkadex was the recipient of a Web3 grant, and has already met the first milestone – and also successfully released two versions of its testnet.
From a funding standpoint, Polkadex was able to sell out its IDO via Polkastarter, which bodes well for the platform going forward.
Ultimately, the technology needed to enable a new generation of DEXs that feature deep liquidity and numerous tools exists, but it takes groups like Polkadex to take that technical capacity and make it a reality.
The PDEX Token
Polkadex uses the PDEX utility token which allows holders to do a number of actions on the blockchain. Like many DeFi platforms, Polkadex uses its utility token to allow governance by the token holders, but as the token of an exchange PDEX does a lot more.
According to Polkadex, PDEX will allow holders to:
- Pay transaction and trading fees to get discounts on them
- Participate in Polkadex IDOs
- Participate in on-chain governance of the network
- Become a validator of the network by staking
- Nominate validators and collators of the network
PDEX tokens will be sold in a set of funding rounds, however 41% of the token supply will be kept in the Polkadex treasury after the launch of the platform.
As nearly half of the tokens are locked up for use by the platform, the supply on the open market may rise in price as the platform becomes more popular.
It is difficult to see how Polkadex won’t impact the crypto markets in a positive way. Not only is it a potentially game-changer for traders – it also could usher in a new era in fundraising.
With low–latency and high-frequency trading capabilities, Polkadex has something for any trader, regardless of if they are new to the market, or looking to operate commercially on the DEX.
Like any developing project – Polkadex is still growing. It is well funded, and as it continues to develop, it will likely have no trouble attracting capital.
The simple fact is that the era of CEX dominance is over. While CEXs did make sense in the early days of crypto – today – DeFi and platforms like Polkadot have changed the market for the better.