Soramitsu, a technology provider, announced a “soft launch” of the SORA Network system, which will connect the Polkaswap DEX on the Polkadot network with the Ethereum blockchain. This is stated in ForkLog’s press release.
Polkaswap is a cross-chain DEX built on the automated market maker (AMM) model. It will enable low-cost exchanges of ERC-20 tokens and assets from other networks connected to Polkadot via bridges with low fees.
Polkaswap is characterised by high throughput. The developers are confident the new platform will assume the role of a ‘central bank’ in decentralised finance.
Participants of Polkaswap will have the opportunity to mine liquidity, trade, and create their own assets.
Liquidity for all trading pairs will be supplied by the XOR token. The protocol will automatically provide liquidity via a token bonding curve. The latter governs XOR, backed by VAL, PSWAP, ETH and DAI.
For liquidity providers there are rewards in PSWAP tokens.
The trading fees, set at 0.3% of each transaction, will be used to buy back and burn PSWAP. Over five years the reward share will decline from 100% to 35% of the burned tokens and will then remain at that level.
Developers noted that as the bonding curve fills, users will gain access to “unbounded liquidity” thanks to its aggregation technology (ALT). This will make Polkaswap the most active trading platform in the crypto ecosystem.
The creators emphasised that such tokenomics are not possible in Ethereum due to limitations of the Ethereum Virtual Machine.
“Unlike the second-largest cryptocurrency network, this is possible for Polkaswap through the higher-performance Substrate framework, which underpins Polkadot and the DEX itself”, — the press release states.
In the future a transition to Hyperledger Iroha 2 is planned, which will raise throughput to 20,000 TPS.
The Fearless Wallet in Kusama and Polkadot networks on iOS and Android will gain Polkaswap support in the coming months.
In February 2021, the Equilibrium platform began work on implementation of Curve Finance on Polkadot.
In late 2020 the lending project aannounced the launch of Compound Chain — a protocol designed to enable interaction of assets from different blockchains.
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