Polkaswap is an open-source, non-custodial decentralized exchange (DEX) protocol. The automated market maker (AMM) project was founded in July 2020 and had its soft launch in April 2021 with a focus on interoperability.
Polkaswap runs on the SORA network which is built with Substrate and is therefore natively compatible with the Polkadot and Kusama ecosystem thus giving Polkaswap best scalability and security.
In June 2020 the Polkaswap project was initiated by SORAMITSU with a grant from the Web3 Foundation.
Currently, Polkaswap is a fully decentralized project. In fact, by submitting Request for Proposals (RFP), users can tender the development and implementations of functions they would like to have in Polkaswap and the SORA network.
There is another aspect however, teams of developers that have the expertise to implement these changes themselves can also propose them, and if approved, their code could be incorporated to a runtime upgrade and they would also get rewarded for the work provided.
Polkaswap is a DeFi project built on the Polkadot ecosystem, designed exclusively to support faster trading without the need for any intermediary. As a DEX, Polkaswap offers some outstanding features that make it difficult to pass by.
While the majority of DEXs are built on top of the Ethereum blockchain, Polkaswap goes the Polkadot way. Polkaswap establishes interoperability between multiple blockchain bridges and can allow users access to ETH and ERC-20 tokens, DOT and KSM, BTC, BSC, and any other token the project integrates in the future.
Another benefit Polkaswap enjoys by being built on the Substate network is cheaper gas fees compared to that of other networks
A unique feature of Polkaswap and the SORA network is the implementation of a Token Bonding Curve, a smart contract that manages XOR supply. It helps Polkaswap by providing deep liquidity for large trades, by reducing the effects of pump-and-dump manipulation attacks and having many more positive effects on the whole ecosystem. You can read all the details and the implications here.
In addition to these unique offerings, users can also earn from their assets on Polkaswap by supplying liquidity to its pools. These features have made some refer to Polkaswap as the Uniswap of the Polkadot ecosystem
