Polkastarter is a decentralized exchange (DEX) built for facilitating interoperability between different blockchain protocols. It is a DeFi protocol that allows companies to raise funds in a cross-chain token pool on a decentralized and secure environment.
In this Polkastarter review, we examine the project by carrying out a detailed fundamental analysis of the project and also inspecting the tokenomics of its native token.
What is Polkastarter?
Polkastarter is a decentralized exchange (DEX) based on the concept of DeFi. Its infrastructure layer enables multiple blockchain protocols to interact with each other in a decentralized manner. The interoperability factor allows cross-chain interaction of blockchains built on different blockchain ecosystems. The Polkastarter project is built on the Polkadot network.
Polkastarter allows decentralized platforms to raise capital through its network. Companies or organizations can list their native tokens on the DEX platform. Polkastarter also allows companies to raise funds through dutch auctions and sealed-bid auctions.
Users can participate and exchange assets without being bound to any specific blockchain standard like ERC 20. Users can also perform cross-chain token swaps taking advantage of faster processing of transactions.
Pros and Cons of Polkastarter
The DeFi project has advantages and risks in accessing its ecosystem.
- Interoperability with different blockchain protocols.
- Permissionless listing of tokens.
- Cross-chain swaps between tokens.
- Limited data on its team members.
- Price volatility is high in its native token.
What Features Does Polkastarter Offer?
The unique features offered by the Polkastarter DEX ecosystem include
- Functionality- By facilitating interoperability across different blockchains, Polkastarter facilitates easy access to swap tokens belonging to any network. It uses sharding technology to switch between different blockchain protocols.
- Transaction speed- The Polkastarter platform is built on the Polkadot network, which has a high capacity to process transactions. Through Polkadot, Polkastarter can process 160,000 transactions per second (TPS) and can go as high as a million TPS.
- Governance- Through its native token POLS, users can participate in the Polkastarter ecosystem. Its native token POLS enables users to vote on product features, token utility, and types of auctions.
- Data sharing- Apart from cross-chain transactions, Polkastarter also facilitates the sharing of data between protocols belonging to different blockchain networks.
Evaluating Polkastarter and POLS
The native token of Polkastarter is POLS. The total supply of POLS token is 100 million with the initial circulating supply of nearly 18 million POLS.
The native token POLS is a utility token in the Polkastarter ecosystem. Its applicability in the Polkastarter network is in three different ways:
- Governance- Token holders can participate in product development through community voting.
- Staking- Users can stake POLS token for pool rewards which will be distributed by providing liquidity to the Polkastarter ecosystem.
- Liquidity mining- The liquidity mining program is a way to participate in daily token rewards,
The POLS token distribution is in the following metrics:
- 15% for Seed sale
- 27.5% for Private sale
- 22.5% for Liquidity fund which will supply liquidity to Uniswap and other exchanges
- 15% for Ecosystem growth which includes marketing, awareness, partnerships and exchange listings
- 10% to the Team and Advisors
- 10% to the Foundational Reserve
As per its whitepaper, the Team, Advisor, and Foundational tokens are locked for at least 1 year.
The funds collected will be distributed among the following sectors
- 45% to the developer team
- 20% to marketing actions including partnerships, awareness, and go-to-market strategy
- 5% to legal and accounting
- 30% to supply liquidity to exchanges
Fundamental Analysis Check of Polkastarter
The Polkastarter project does provide a utility factor for integrating and interacting with multiple protocols. Since the popularity of DeFi and the cryptocurrency ecosystem, various projects are built on different blockchain networks that encompass multiple use-cases. For instance, even in the DeFi ecosystem multiple use cases of lending, borrowing, stablecoin are accessed by one single user. Hence, one user interacts with multiple protocols developed on different blockchain networks. Polkastarter provides a single platform that enables interoperability between these blockchain ecosystems. With cross-chain token swaps, users can instantly convert from one token into another. Moreover, with the Polkadot network, users can engage in faster transactional processing.
The project lacks sufficient data on its team members. Currently, there are only two names of founders mentioned on its website. There are no details on the developers, marketing head, legal head, and any other department of the project. Apart from the founders, the Polkastarter project mentions two advisors for its project.
While the LinkedIn profiles provide details of the founders, its website does not contain any information on their relevant experience. Further research also suggests that while founders do have experience with different projects, it is not necessarily in the cryptocurrency domain.
The whitepaper of Polkastarter provides details of the detailed roadmap defined till the last quarter of 2021. The last quarter of 2020 incorporates features including permissionless listing, private pools, token scams, and anti-spam for the last quarter of 2020. Its roadmap suggests advanced features of dynamic ratio swap and sealed bid auction for the year 2021.
Is Polkastarter a scam?
No. Detailed analysis does not suggest that the project is a scam. It does have an extensive plan and careful research that can be seen from its roadmap. It also offers unique features within its DEX ecosystem which meets the needs of the near future.
However, the project does need to update and provide more details on its team members. Also, the lack of experience of founders in cryptocurrency projects is a cause of concern. Moreover, the project is yet in a development phase. Analyzing the project’s performance and its features in the next few months will give more details on how Polkastarter stands up to its statements. Additionally, its website or external sources does not mention details of its smart contract audited by service providers.
Are there Risks Using Polkastarter?
Yes. Similar to any other DeFi project in the ecosystem, Polkastarter also comes with its own set of risks and challenges. One of the risks includes the exploitation of its smart contract code. An attacker or hacker can manipulate a smart contract code of Polkastarter to indulge in unfair activities. This can have a negative impact on its token POLS and the overall project. It is important to have a proper audit check of the smart contract code to find any loopholes beforehand.
**Average Rating: 8/10
One of the first projects on the recently launched Polkadot network, Polkastarter does incorporate storing fundamentals that meet the needs of the near-future. It also has a detailed roadmap and subsequent actions to implement their plans. With an increasing number of blockchain applications being developed on different networks, Polkastarter certainly leads the way to provide a platform that integrates multiple projects.
However, Polkastarter has a long way to go. Most of its plans are still in the development phase and yet to be implemented on the ground. But this DeFi project is certainly one of the platforms to look for in the upcoming years.
Polkastarter Key Questions, Answered.
Where can I find the whitepaper of Polkastarter?
The whitepaper of Polkastarter can be accessed from its website. You can also click on this link to directly access its whitepaper.
On which exchanges is the project listed?
Its token POLS can be accessed through ETH and USDT from Uniswap, Gate, MXC, Poloneix, and Bilaxy.
What is the community stats of the project?
As of October 2020, there are 4 social media channels of Polkastarter. This includes Medium, Telegram, Twitter, and LinkedIn.
Are there any competitors of the Polkastarter project?
Yes. There are projects that are currently in development focussing on interoperability between blockchain protocols. One of which is Alpha Finance.