Interoperability is a recurring element in the development of new DeFi protocols. The idea of being tied to one blockchain in a dynamic environment is no longer welcomed. Polkastarter is one of the new projects built on the Polkadot blockchain that is conquering the world of DeFi. Read here why Polkastarter is a game-changer in the DeFi world.
- 1 What is Polka Starter (POLS)?
- 2 Background
- 3 What is Polka Starter?
- 4 The use case and main features of Polkastarter
- 5 How Polkastarter handles fixed swaps
- 6 Immediate benefits of using fixed swaps are:
- 7 The original token of Polkastarter (POLS)
- 8 Two important partnerships
- 9 Polkastarter and DIA
- 10 Why Polka Starter?
- 11 Roadmap
- 12 The team
- 13 What makes Polkastarter unique?
- 14 Safety
- 15 Polka Starter Chart
- 16 How to buy POLS on Uniswap with MetaMask wallet
- 17 Conclusion
What is Polka Starter (POLS)?
Polkastarter (POLS) is a cross-chain decentralized protocol, powered by Polkadot , that allows startups to raise money in a decentralized and interoperable environment.
In 2020, the decentralized financial ecosystem registered encouraging numbers in the number of DeFi protocols, as well as the number of funds locked on these platforms. In terms of the number of protocols, the platforms focused on different areas such as lending, commerce, and insurance. Unfortunately, not many protocols involve revolutionizing conventional fundraising models, such as initial coin offerings, initial decentralized exchange offerings, and initial exchange offerings.
However, projects like Polkastarter are on their way to bring a sigh of relief to startups looking for innovative ways to raise funding. Before we delve deeper into the project and what it delivers for startups, let’s first look at the group behind it. Below is a quick picture of how the Polkastarter ecosystem works.
Daniel Stockhaus and Tiago Martins are the brains behind Polkastarter. As co-founders of the project, Stockhaus is the CEO, while Martins is the CTO, the Chief Technology Officer. In particular, the two have extensive experience ranging from technical entrepreneurship to software development. Other members of the team include Danilo Carlucci and Matthew Dibb . Carlucci is a serial entrepreneur and angel investor, while Dibb is a strategic advisor.
What is Polka Starter?
Polkastarter is a decentralized platform that allows startups and other projects to raise capital through token auctions and inter – blockchain token pools. As you might guess from the name, the project is built on the Polkadot network and is sometimes referred to as the Ethereum killer.
Stockhaus chose Polkadot because of the network’s strengths in scalability, speed, interoperability, extensibility and management. Polkadot thus outperforms the transaction speed of Ethereun and Bitcoin thanks to the use of parachain, which enhances horizontal scalability, and Grandpa’s consensus mechanism, which promotes vertical scalability.
Polkadot’s Proof of Stake consensus, GRANDPA, Polkastarter leverages these strengths to enable governance through voting and community staking. The network also relies on Polkadot to boost liquidity mining.
Using these features, the project outperforms existing decentralized exchanges and swap protocols such as Uniswap , Bounce, and Primablock. For example, these networks do not support cross-chain pools, while Bounce and Primablock support a limited number of virtual assets.
The use case and main features of Polkastarter
Polkastarter expands beyond the fundraising space into crowdfunding and allows participants to take advantage of discounts on sales. In addition, the protocol can increase the privacy of over-the-counter deals by enabling password protection during such transactions.
The network differs from other similar projects in that it enables:
- Swaps between chains
- Fixed and dynamic swaps
- Decentralized and Permissionless Token List
- Extensive KYC procedures
- Users can detect scams remotely through a built-in anti-scam feature
How Polkastarter handles fixed swaps
Pools with fixed swaps are important components of the network. Unlike automated market making, fixed swap counteracts price volatility. Fixed swaps also provide more transparency about the amount raised during the fundraising. Polkastarter uses fixed swap pools instead of AMM swap pools. This approach, among other challenges, solves the risk of private investors artificially inflating the price and dumping their holdings and the cost of the token offerings. This can be made possible by whales, among other things, who manipulate the price in this way.
In addition, fixed swap pools ensure a fair distribution of tokens while eliminating the risk of back pulls in a liquidity pool. Note that instead of using a bonding curve approach to determine token prices in a pool, Polkastarter sets a fixed price when trading tokens. Only then is it possible to add other parameters, such as how much a single user can contribute to a project. In addition, it is easier to set more parameters to ensure transparency and fairness for new token holders.
Immediate benefits of using fixed swaps are:
- The amount collected and the tokens sold can be easily calculated.
- It attracts investors who are both demographically and geographically dispersed.
- Token holders will have the chance to acquire tokens at a standard price.
The original token of Polkastarter (POLS)
The network has a native token called $POLS, which is used for various sections on the platform. The total stock of POLS is 100 million tokens. Exactly 42.5 percent of the tokens were sold during the seed sale, private sale and Uniswap listing. Other tokens went to the Marketing Fund, Team, Advisors and Fundamental Reserve.
The funds raised during the sales periods went into legal/accounting, ecosystem growth, liquidity/exchanges and product development.
POLS is used on the Polkastarter ecosystem as a native token. POLS is mainly used for reimbursements.
As a governance token, the holders can vote on critical issues such as protocol features and tokens to be listed on the network. In terms of fees, transactions on the platform are paid in its home currency, in POLS tokens.
The token can be wagered to earn staking rewards on several fronts. For example, it can be used to receive pool rewards or to access a pool. Know that closing Polish is only for the creators of the Pool. However, the choice is ideal for giving top liquidity providers private access to high-value pools.
In addition, Polkastarter’s own currency can be used to participate in liquidity mining. Rewards are paid, among other things, to trades that provide tokens on the secondary markets.
Two important partnerships
While Stockhaus and the team have established many partnerships with reputable decentralized platforms, two stand out:
Polkastarter and Covalent
Covalent is a platform that can retrieve intricate details about a crypto wallet . As such, it allows Polkastarter and its users to check the trustworthiness of a token contract. The users have access to the age of the token contract, the verification and the transaction volume, among other things.
Polkastarter and DIA
Decentralized Information Asset ( DIA ) is a platform that offers distributed oracles on Polkastarter. An oracle provides data from outside the blockchain by means of smart contracts . It establishes the connection between the blockchain and the outside world. Thanks to the exceptional qualities of its oracles, DIA Polkastarter helps to warn against huge price shifts.
Other partnerships include Moonbean, Shyft, and Orion Protocol .
Why Polka Starter?
There are currently nearly 12,000 active blockchains on Github’s database, each with their own purposes and ecosystems, as well as their own protocol and specific programming language. While these blockchains offer normative potential, their lack of mutual interaction and liquidity poses a hurdle. Polkastarter is intended to facilitate that interaction. It is a new DEX and decentralized fundraising platform, which allows interaction between different blockchains, the so-called ‘interoperability’.
The purpose of this phase is to test the dynamics of barter and token sales, collect user feedback, and prepare a robust infrastructure to migrate to Polkadot. With a variety of EVM compatible Polkadot projects, they are confident that their work will enable them to initiate and launch development work on Polkadot.
This will mean the full launch of the working product in the Polkadot environment, allowing Polkadot projects to fundraise in DOT or other Polkadot-based tokens the project wants to raise. The vision is for Polkastarter to cross-chain pools with Polkadot trading pairs such as BTC, ETH and USDT.
- Polka starter 2.0
- Multi-Chain Token Pools (Ethereum and Polkadot)
- Stake out for board
- Stakeout for Pool Rewards
- Community-driven voices for featured projects
- Full KYC Integration
Q2, Q3 and Q4 2021
- Polka starter 3.0
- Cross-chain token swaps
- Dynamic Ratio Swaps
Polkastarter has an executive team with more than three decades of combined experience in technology companies. It was co-founded by Daniel Stockhaus and Tiago Martins, who currently hold the positions of CEO and CTO respectively at Polkastarter.
Daniel Stockhaus is a serial entrepreneur who is responsible for co-founding a highly successful e-commerce company known as LiGo as well as digital growth firm Oliphant Ltd. Prior to this, he worked as a digital media designer for Fitch, graduating with a bachelor’s degree in communications and media studies.
Tiago Martins, on the other hand, is a former computer science professor and an accomplished developer with expertise in online education and product development. He is also the co-founder of Codeplace, an online platform that teaches the basics of web development. He incorporated this knowledge into the development of Polkastarter in order to further develop Web 3.0 .
In addition to the executive members, the Polkastarter team also includes a number of highly experienced consultants and other non-public personnel.
What makes Polkastarter unique?
The competition in the crypto market is increasing, so it is important to have a unique project. Polkastarter’s main offering is its fixed swap smart contract, which allows projects to easily launch liquidity pools that execute orders at a fixed price – rather than using the SMP model popularized by Uniswap. Trading on decentralized exchanges is usually accompanied by the chance of impermanent loss, but by determining fixed prices, this uncertainty is removed.
The platform is designed to handle different types of auctions including sealed bids and Dutch auctions, as well as both fixed and dynamic ratio swaps. This makes it suitable for cryptocurrency projects looking to raise money, as well as for a variety of other use cases, including private transactions, OTC deals, and discounted sales.
In addition, other key features of the platform include anti-scam capabilities, full KYC integration, and liquidity mining.
It should be noted that many of these features are not currently available, but are scheduled to launch at a later date and be part of their roadmap – possibly following the transition from Polkastarter to the Polkadot network, which is currently slated for 2021.
Polkastarter based on the Ethereum blockchain and POLS is an ERC-20 token. As a result, it is secured by Ethereum’s comprehensive proof-of-work ( PoW ) mining system, in which thousands of miners and nodes work together to keep the network secure.
Polkastarter will migrate to Polkadot in the first quarter of 2021. This move will be facilitated by the partnership with Moonbeam , which will allow the Polkastarter team to easily port its current Ethereum-focused code to Polkadot. Once launched on Polkadot, transactions will instead be secured by Polkadot’s hybrid consensus mechanism – made up of GRANDPA and BABE.
BABE is used to represent block producers, while GRANDPA rounds them out. The two systems work together to prevent centralization and protect against Sybil attacks.
Polka Starter Chart
How to buy POLS on Uniswap with MetaMask wallet
Buying and trading token in the DeFi ecosystem is slightly different than on a central exchange. To find out where the tokens are available, you can consult platforms such as CoinGecko or CoinMarketCap and look at the active exchanges there. There you will also see the total amount of volume available to trade.
Where central exchanges have the option to keep your investments in the platform’s spot wallet itself, in a decentralized finance ecosystem you need a software wallet, such as MetaMask. This is a browser extension that you use to store your digital assets after trading them on a platform like Uniswap or Polkastarter.
By using fixed price swaps instead of SMP, Polkastarter raises the bar for decentralized financing. It adds the transparency and fairness aspect that similar platforms lacked. The project’s partnerships with Covalent and DIA give users peace of mind knowing they can pick a suspect project from the crowd and avoid price shifts.
Additionally, Polkastarter’s native token opens the door to distributed governance while giving holders an additional way to earn rewards through staking. Polkastarter is a unique opportunity for every crypto fanatic!
Thanh Lanh Tran(1989) is Chief Editor from BitcoinUSD.com