Liquidity Aggregation
Polkaswap
Polkaswap
Section titled “Polkaswap”Polkaswap is a next-generation, cross-chain liquidity aggregator decentralized exchange (DEX) built on the SORA Network. Unlike traditional DEXs that rely on a single liquidity source, Polkaswap aggregates liquidity from multiple sources to provide users with the best possible prices.
Key Features
Section titled “Key Features”Cross-Chain Trading
Smart Routing
Automatically finds the best path for trades to minimize slippage and maximize returns.
Reduced Impermanent Loss
Multi-source liquidity infrastructure reduces the impact of impermanent loss.
How Polkaswap Works
Section titled “How Polkaswap Works”Liquidity Sources
Section titled “Liquidity Sources”Polkaswap doesn’t rely on a single liquidity pool. Instead, it aggregates from multiple sources:
| Source | Description |
|---|---|
| XYK Pools | Traditional constant-product (x*y=k) liquidity pools |
| Token Bonding Curve | SORA’s algorithmic market maker for XOR |
| Order Books | Limit orders from advanced traders |
| External DEXs | Cross-chain liquidity from partner exchanges |
Smart Routing Algorithm
Section titled “Smart Routing Algorithm”When you make a trade on Polkaswap:
- Query All Sources — The algorithm checks available liquidity across all sources
- Calculate Optimal Path — Determines the best route considering fees and slippage
- Split Orders — May split large orders across multiple sources
- Execute Atomically — All parts of the trade complete or none do
This approach consistently delivers better prices than single-source DEXs.
Trading on Polkaswap
Section titled “Trading on Polkaswap”Supported Assets
Section titled “Supported Assets”Polkaswap supports a wide range of assets:
- Native SORA Tokens — XOR, VAL, PSWAP
- Ethereum Assets — ETH, ERC-20 tokens via HASHI bridge
- Polkadot/Kusama — DOT, KSM, and parachain tokens
- Stablecoins — TBCD, DAI, USDT, and more
- NFTs — Create, trade, and pool NFTs
Trading Interface
Section titled “Trading Interface”The Swap interface is the simplest way to trade:
- Select the token you want to sell
- Select the token you want to buy
- Enter the amount
- Review the quote and slippage
- Confirm the transaction
For more control, use limit orders:
- Set your desired price
- Specify the amount
- Choose order duration
- Submit and wait for execution
Provide liquidity to earn PSWAP rewards:
- Select a trading pair
- Add balanced amounts of both tokens
- Receive LP tokens representing your share
- Earn trading fees and PSWAP rewards
Liquidity Provision
Section titled “Liquidity Provision”Why Provide Liquidity?
Section titled “Why Provide Liquidity?”Liquidity providers (LPs) earn rewards from multiple sources:
- Trading Fees — 0.3% of every swap goes to LPs
- PSWAP Rewards — Additional PSWAP token incentives
- VAL Rewards — VAL from network transaction fees
XYK Pools
Section titled “XYK Pools”XYK pools are constant-product market maker pools where:
x * y = kWhere x and y are the reserves of two tokens, and k is a constant. This formula ensures there’s always liquidity available, with prices adjusting based on supply and demand.
Impermanent Loss Protection
Section titled “Impermanent Loss Protection”Polkaswap’s multi-source liquidity aggregation helps reduce impermanent loss:
- Trades are routed optimally across sources
- Less reliance on any single pool
- More stable pricing from diverse liquidity
PSWAP Token
Section titled “PSWAP Token”PSWAP is the reward token for Polkaswap liquidity providers.
Tokenomics
Section titled “Tokenomics”| Property | Value |
|---|---|
| Max Supply | 10 billion PSWAP |
| Model | Deflationary (decreasing over time) |
| Fee Allocation | 0.3% of trades → buyback-and-burn |
| LP Rewards | Initially 90%, decreasing to 35% over 5 years |
Reward Mechanics
Section titled “Reward Mechanics”Every trade on Polkaswap contributes to PSWAP distribution:
- Trading fees are collected (0.3% per swap)
- Buyback — Fees are used to buy PSWAP from the market
- Burn — Purchased PSWAP is permanently burned
- Remint — A percentage of burned tokens is reminted for LP rewards
- Distribute — Rewards are distributed to liquidity providers
Cross-Chain Bridges
Section titled “Cross-Chain Bridges”Polkaswap connects to external blockchains through bridges:
HASHI Bridge (Ethereum)
Section titled “HASHI Bridge (Ethereum)”The HASHI bridge enables trustless transfers between Ethereum and SORA:
- Move ETH and ERC-20 tokens to SORA
- Trade on Polkaswap with low fees
- Bridge back to Ethereum when needed
Polkadot/Kusama
Section titled “Polkadot/Kusama”Direct integration with the Polkadot ecosystem:
- Access parachain tokens
- Benefit from shared security
- Cross-chain message passing
TON Bridge
Section titled “TON Bridge”Connection to TONSWAP and the TON ecosystem:
Advanced Features
Section titled “Advanced Features”NFT Support
Section titled “NFT Support”Polkaswap supports Non-Fungible Tokens:
- Mint NFTs — Create unique tokens with IPFS storage
- Trade NFTs — Buy and sell in the marketplace
- Pool NFTs — Add NFTs to liquidity pools
- Divisible NFTs — Split ownership of high-value items
Referral Program
Section titled “Referral Program”Earn rewards by referring new users:
- Get a unique referral link
- Earn a percentage of referred users’ trading fees
- Track your referrals in the dashboard
Getting Started
Section titled “Getting Started” Launch Polkaswap Start trading at polkaswap.io
Get XOR Learn about the XOR token
Fearless Wallet Mobile access to Polkaswap
PSWAP Rewards Understand liquidity incentives
Summary
Section titled “Summary”Polkaswap represents the next evolution in decentralized exchanges:
| Traditional DEX | Polkaswap |
|---|---|
| Single liquidity source | Multi-source aggregation |
| Higher slippage | Smart routing for better prices |
| Limited assets | Cross-chain support |
| Basic swaps only | Swaps, limits, pools, NFTs |
By combining liquidity aggregation, cross-chain bridges, and innovative tokenomics, Polkaswap delivers a trading experience that rivals centralized exchanges while maintaining full decentralization.