Behind the Technology that Powers Polkaswitch: A Decentralized Cross-chain Liquidity Protocol
Polkaswitch is a decentralized cross-chain asset exchange and liquidity protocol that allows users to trade Polkadot, Ethereum, and ERC20 tokens across a multitude of DEXes across the DeFi ecosystem. The project is aiming to synthesize these different chains in order to create the most optimal user experience, housing everything in one place.
Once fully developed and implemented, the protocol is bound to set the stage for incredible developments in the DeFi space. Never before has the DeFi space seen something like this, as Polkaswitch is looking to enhance the overall DEX marketplace by encouraging the utilization of both Polkadot and Ethereum. It also has a first-mover advantage, so there’s no question it will make a big splash and generate tremendous buzz.
Behind this incredible proposition and outlook lies the core driver of the project: the technology. Understanding the concepts driving the project forward will give you insight into how impactful it can be for the crypto community.
Basics Behind the Technology
First and foremost, the technology behind Polkaswitch is poised to create the most appealing and intuitive trading platform, focused on simplicity in its truest form. The user interface will be designed to be sleek on the front end while integrating all of the necessary components on the backend.
The project is strongly committed to ensuring total decentralization, as it is a permissionless protocol overseen by users and liquidity providers. Additionally, it is 100% trustless and non-custodial, making you the sole owner of your digital tokens; your assets are kept in a contract wallet and are always publicly available, maintaining the decentralized nature of crypto.
If you’ve used DEXes before, so far there’s nothing new, however we are just getting into the details of what makes Polkaswitch special.
In order to bundle all of the liquidity across major Ethereum and Polkadot DEXes, Polkaswitch uses advanced algorithms, contracts, and bridges. This solves the issue of insufficient liquidity when trying to trade a specific asset on a single DEX, which can cause massive spikes in price impacts and turn into a major inconvenience.
Once the best liquidity source has been detected for the token you are attempting to trade, Polkaswitch will execute the order using the best offer received from the DEXs it sourced liquidity from. All in all, it is capturing as much information as possible to feed users with the best available and accurate data for trading.
MetaMask is the wallet of choice that can be utilized to interact with the protocol in order to facilitate and approve transactions. Serving as one the most utilized and compatible wallets in the space, its integration is critical to ensuring the user experience runs as smoothly as possible and reduces the learning curve for new and existing traders.
The days of scrambling between multiple DEXes and paying exorbitant gas fees are almost behind us!
The project has announced two major partnerships to accelerate and leverage technological advancements:
- Moonbeam: An Ethereum-compatible smart contract parachain on Polkadot, it has partnered with Polkaswitch to integrate with the Ethereum Virtual Machine, a virtual stack implanted within each Ethereum node that executes contract bytecodes.
- Manta Network: An interoperable privacy protocol for Defi, currently building a privacy-preserving layer 1 DEX, has partnered with Polkaswitch to tackle some of DeFi’s weaknesses, provide higher liquidity, and achieving truly decentralized cross-chain trading
More partnerships are in the pipeline, which will help lead to even further developments and use cases for the protocol.
Stay Informed on the Future of Polkaswitch
The roadmap for Polkaswitch has really taken off in Q1 2021, with much more to come in Q2 and Q3 2021. A testnet launch is underway, with a mainnet and product launch on the horizon. More developments are in the cards leading up to the finalization of the product, and you won’t want to miss out!
Check out Polkaswitch’s platforms and website below for more information:
- Telegram Announcement Group
- Telegram Official Group