DeFi projects continue to gain steam across the blockchain ecosystem. Currently, decentralized exchanges based on Ethereum contain the lion’s share of users, but Binance Smart Chain is quickly gaining ground. As these two protocols fight for market cap, the need for new tokens is more significant than ever. The new Polkadot protocol has been long heralded as a potential competitor as it promises more functionality than Ethereum with faster speeds. Polkastarter, a new decentralized exchange designed to raise money for new projects, may be here just in time to handle the influx of new users.
From humble beginnings, Polkastarter has recently brought on a bevy of partnerships to flesh out its capabilities. These technical partnerships fill in gaps or serve as middleware to handle tasks more optimally than Polkastarter can alone. For example, the most recent collaboration with Shyft Network will enable the protocol to manage any KYC requirements to comply with local jurisdictions and regulations.
Some blockchain projects require full KYC requirements to sell tokens to investors and speculators. Understandably, many customers hesitate to hand over such information, considering a large number of data breaches in recent memory. Shyft understood this concern early on. They have created a way to securely and safely handle personal data while processing it within seconds. To this end, the Shyft Network has the infrastructure to keep the number of people who have custody of the data down to a minimum.
But KYC is not the only issue when raising capital via tokens. To bring in additional liquidity, Polkastarter is working closely with Orion Protocol. The liquidity provider will be launching their mainnet on December 15th, a date which Polkastarter is eyeing closely. Via Orion’s Liquidity Boost plugin, the partnership will ensure that projects will have access to cross-exchange liquidity and ERC-20 tokens. These fixed swap pools will allow more volume of trades without the sharp spikes in prices, lowering volatility. Several of these pools will be created by Orion. Those familiar with Automated Market Makers (AMMs) understand that a lack of liquidity can quickly cause prices on tokens to rise or drop substantially, throwing off an otherwise successful trade.
For example, if a project created a fixed swap pool selling Orion tokens, etc. and there is not enough demand to fill that pool, Orion could fill that demand.
But all the liquidity in the world is worthless if the tokens are not genuine. A trend over the last months has been for bad actors to create tokens with the same name as legitimate ones. Investors may unknowingly purchase the fraudulent tokens thinking they got a deal, only to realize they are worthless. Covalent specifically deals with verifying that tokens on exchanges are legitimate, allowing users to trust they are getting what they are expecting. Additionally, Covalent will be able to flag wallets that may have been used in illegal operations.
Finally, to ensure that the data on these token swaps is valid, DIA (Decentralized Information Asset) is being brought in as a price oracle. But DIA handles more than only the market price of Ethereum. Polkastarter pools connected to DIA will source information in real-time and give high-slippage alerts for swaps. This way, fluctuations in token prices will be caught early on, preventing unnecessary slippage.
Last but not least, is Polkastarter’s just-announced partnership with Moonbeam. The Moonbeam protocol allows developers to quickly port Ethereum code to Polkadot with minimal corrections. This functionality will allow Ethereum dApps to move quickly over to the Polkadot infrastructure, cutting down the time needed to code and not “reinvent the wheel.”
Wrap It Up
The raising of capital is rarely a fun undertaking. It requires potentially thousands of investors all having an equal opportunity to speculate on a new company or project. As the fund-raising platform for the decentralized world, Polkastarter has partnered with many companies that will keep the process streamlined, automated, and free of human disruption. As they move closer to their MVP launch, these technology partnerships strengthen the project’s overall visions. These collaborations are essential in delivering a platform that works “out of the box.”
The Daily Chain
*Disclaimer – Polkastarter is our Media Partner, and this content is made possible with their support. The above article does not represent financial, investment, or trading advice, and we do not recommend the purchase of any cryptocurrency or product without consulting a financial aid. The Daily Chain strongly encourages you to do your own research before making any investment decisions.