DEXes built on Ethereum have taken the crypto universe by surprise and are now the front-and-center stage for optimized trading. DeFi users rely on Ethereum-based DEXes, the most common of which is Uniswap, to perform fast and simple trades.
DEXes have amassed massive volumes of liquidity, displacing consolidated rivals for a significant portion of the industry. Their use case is well-established, with consumers of all sorts flocking to them to take advantage of token offers, anonymity, and ease.
Many of these advantages come at a price, and these problems have culminated in a slew of obstacles and unmet needs. In the middle of all the hoopla, a new player has emerged.
What is Polkaswitch?
Polkaswitch is a decentralized cross-chain asset exchange and liquidity protocol that takes advantage of the combined liquidity of DEXs on Polkadot, Ethereum, and other layer 1 solutions. It takes a holistic view across the DEXes, uses different algorithms, and finds those with the highest liquidity and best price for the token you’re selling.
It was one of the first cross-chain trading platforms to hit the market. In Q1 2021, it will go through beta tests, with a highly awaited testnet and final product launch in Q2/Q3 2021. A clean and elegant user interface/trading vision, a trustless scheme, and connectivity with top wallets such as MetaMast would all be prominent features.
The Problem with Ethereum-based DEXes
Despite the fact that Ethereum-based DEXes are continuing to increase in popularity, a variety of problems have arisen, creating confusion among the crypto community. As a result, consumers are flocking to alternate layer 2 implementations or even new chains (i.e. Binance Smart Chain).
The most important thing is Ethereum’s exorbitant gas fees. Any Uniswap consumers have said to have paid anywhere from tens to hundreds of dollars to simply accept or make a swap. As a result, Ethereum’s scalability has slowed dramatically (at least for the time being), and users are often stopped from trading.
Trading choices are also limited, as you can only exchange one token for another at the moment, with no advanced functionality. Many consumers wish DEXes offered more trading features, such as limit orders or advanced pricing maps, since they are simple and easy to use.
Finally, there are just too many DEXes to pick from; this is more of an annoyance for users than a challenge, as users are often unsure which one to use to get the best deals for their trades and the fastest and most smooth executions.
Polkaswitch to the Rescue
Polkaswitch faces a huge challenge in getting a new product to market in the hopes of solving the bulk of the problems that Ethereum users face. It has high expectations and good institutional and cultural interest, which is lucky. It secured $3 million in seed funding from several top VC firms in March 2021 to help it expand. Furthermore, several new collaborations with Moonbeam and Manta Network are projected to greatly improve the company’s capacity.
Polkaswitch eliminates concerns over switching between DEXes by displaying both values and liquidity from a bird’s-eye perspective. It will also extend access to Polkadot DEXes, providing more opportunities for low-cost, fast trading while also allowing users to choose between Ethereum and other layer 1 solutions.
The user interface is intended to be visually appealing, with basic price charts and trading options displayed on a single page. The rest of consumers would be able to maintain their funds in-house because of the compatibility of MetaMask.
So what’s next?
It’s impossible to envision a world without Polkaswitch now that we’ve heard more about its potential and the need it can fill; the basic idea and technologies are both exciting, and the group is growing more optimistic by the day for the awaited product launch.
The project is still in progress, but it is progressing rapidly, so visit its website and track it on social media to stay up to date on all that’s going on: