What is Polkadex? Review of the Polkadex Project & PDEX Token

What is Polkadex? – Decentralized exchanges, also known as DEX, have become increasingly popular in recent times. The reason for this surge is the growing interest in the decentralized financial market and cryptocurrencies.

However, current DEX platforms tend to encounter several issues, such as high costs, slow transaction speeds, and a lack of liquidity to maintain low slippage. But these problems can be addressed with the development of the Polkadex project. So, what is Polkadex? What makes the Polkadex project unique? How does Polkadex differ from Uniswap? Should you invest in Polkadex? All answers will be provided in TradaFX’s series of articles on coins.

Let’s get started!!!

1. WHAT IS POLKADEX?

Polkadex, also known as PDEX, is developed as a trading platform that combines the advantages of centralized and decentralized finance while offering a comprehensive solution to maintain self-governance mechanisms and high security.

According to the development team, Polkadex has the capability to support decentralized exchanges (DEX) through its Orderbook. As a result, it can address limitations related to costs, transaction speed, and high slippage that are prevalent on many other decentralized platforms.

The Polkadex project focuses on simplifying the chain. This means PDEX emphasizes public transactions that need on-chain verification, similar to a bridge connecting networks like Polkadot and Ethereum.

1.1. How does Polkadex work?

The Polkadex ecosystem is built on Substrate, a framework that supports projects and enables developers to easily deploy application-specific blockchains.

PDEX is designed to create a decentralized exchange and includes several features aimed at making trading safer and more comprehensive. Therefore, Polkadex primarily focuses on user experience and eliminates gas fees.

Initially, Polkadex will use ChainBridge to link Ethereum-based tokens. Once the parachain is secured, it will transition to Snowfork, another project within the Web3.0 ecosystem. This will facilitate the connection of Ethereum-based assets to Substrate, enabling them to be traded on the Polkadex Orderbook.

Polkadex Orderbook includes several tools designed to make trading safer, easier, and more beneficial. One such feature is asset delegation, which allows you to delegate your assets to a third party, such as fund managers or algorithmic trading bots, enabling them to trade on your behalf. Moreover, Polkadex Orderbook remains a decentralized platform where users have full control over their funds and do not need to create accounts to facilitate transactions.

1.2. What problems does Polkadex solve?

This project aims to create one of the most unique protocols in the world of decentralized exchanges, addressing many issues faced by other protocols.

Currently, many popular DEX platforms operate on the AMM (Automated Market Maker) model, such as Sushiswap, Uniswap, and 1inch. However, these platforms have certain limitations:

Limited user experience

For investors using hot wallets, connecting to DEX platforms still involves challenges, including costly and time-consuming token transfers.

For example, keeping funds on centralized exchanges like Huobi or Binance for trading convenience exposes users to security risks. During periods of high market volatility, these brokers often experience “errors,” making it impossible to trade.

Slow transaction speeds and frequent congestion

Currently, DEX protocols operating on the Ethereum network face persistent issues of slow transaction speeds and frequent congestion, which remain unresolved.

High transaction fees

As you may know, when trading on decentralized exchanges (DEX), even if a transaction fails, you are still charged network fees. This is especially evident when investors participate in newly listed projects. During such times, gas fees spike, and if a transaction fails, losses can range from tens to hundreds of dollars.

Limited scalability and connectivity

The process of transferring tokens across different networks still faces significant challenges in terms of fees and time.

2. WHAT MAKES THE POLKADEX TOKEN UNIQUE?

The Polkadex development team is leveraging the latest blockchain technologies and implementing various technical solutions to support this ecosystem. Here are some distinctive features that make the Polkadex token stand out:

2.1. Full Orderbook Support

Unlike most decentralized exchanges (DEX) today, the Polkadex Orderbook is not an Automated Market Maker (AMM), meaning it does not rely on asset ratios in liquidity pools to automatically set asset prices. Instead, it operates more like a centralized exchange, offering a full orderbook that includes both bid and ask orders.

2.2. Polkadex Fiat

Polkadex could become the first decentralized exchange to support fiat currencies, thanks to its centralized Know Your Customer (KYC) verification feature. After completing Polkadex’s secure cryptographic KYC verification process, users can directly purchase tokens with fiat (e.g., via bank transfers or credit cards) without needing custodial institutions. Essentially, the application does not store user data; instead, it receives cryptographic proof from another network to verify the user’s unique certificate.

2.3. Zero-Fee Transactions

The Polkadex Orderbook supports two types of order fees: Limit Orders and Market Orders. However, users will only incur a small fee for market order placement, while order execution is completely free.

Additionally, there are no gas fees or network fees for placing and canceling orders, unlike other decentralized exchanges. This feature makes it easier for trading bots and API-based bots to participate in high-frequency trading.

3. BASIC INFORMATION ABOUT THE PDEX TOKEN

In this section, let’s dive into the basic details of the PDEX token with Forex!

3.1. Basic Information About the PDEX Token

• Name: PDEX Token
• Symbol: PDEX
• Token Standard: ERC20
• Blockchain: Polkadex Blockchain, Ethereum
• Contract: 0xf59ae934f6fe444afc309586cc60a84a0f89aaea
• Token Type: Utility + Governance
• Total Supply: 20,000,000 PDEX
• Circulating Supply: 1,963,860 PDEX

The PDEX token is used for:

• Paying transaction fees
• Participating in Polkadex IDOs
• Holding to receive discounts
• Engaging in governance
• Becoming a network validator through staking
• Nominating network validators and collators

3.2. Where to Buy PDEX?

Currently, you can purchase PDEX tokens on Uniswap. However, trading on Uniswap can incur high gas fees. Alternatively, you can buy PDEX on centralized exchanges (CEX) such as Hotbit or KuCoin.

4. DIFFERENCES BETWEEN POLKADEX AND UNISWAP

Given their popularity in the crypto market, decentralized exchanges (DEX) are often among the first applications launched on new blockchain platforms. However, most DEX platforms fall under the AMM category.

At present, the most prominent AMM is Uniswap, which runs on Ethereum. Naturally, Uniswap could be a direct competitor to Polkadex. While there are some similarities, Uniswap and Polkadex also showcase several differences.

Firstly, Polkadex fully supports order books and uses Trusted Execution Environment (TEE) to ensure transactions are matched quickly and securely. On the other hand, Uniswap uses bonding curves, and investors access liquidity without requiring trust from one or multiple liquidity pools.

Secondly, the Polkadex project is built on Substrate. As mentioned earlier, Substrate is a high-speed blockchain platform that allows for the processing of a large number of transactions simultaneously without buckling. Additionally, beyond fee-free swaps, this helps address congestion and high cost issues that Uniswap is facing.

What is considered most important is the social KYC and Fiat support of the Polkadex platform. Unlike Uniswap, Polkadex allows users to perform social KYC (KYC through social networks) and place orders using Fiat currency. This feature will be available alongside standard Crypto-to-Crypto transactions.

Both Polkadex and Uniswap are considered decentralized exchanges, and users can access them anywhere without needing to create an account.

5. SHOULD YOU INVEST IN PDEX?

This project is developed by a team of experts with many years of experience, led by Matthias Hafner (cryptocurrency economic advisor), Gautham J (CEO and head of technology team), Vivek Prasannan (CEO), and Deepansh Singh (COO). Additionally, the development team has several advisors in artificial intelligence, machine learning, and banking.

The project has also secured important partnerships with notable companies such as Existential Capital, Web3 Foundation, CMS, Blocksync Ventures, Cluster, and more.

Backers of the Polkadex project

The roadmap of Polkadex

You can follow the roadmap of the Polkadex project through the image below:

6. SUMMARY

In today’s article, Forex has shared with you knowledge surrounding the question of what Polkadex is, what makes its token unique, basic information about the PDEX token, as well as the key differences between Polkadex and Uniswap. We hope that what we have discussed will be helpful in your process of understanding and researching this project.

If you have any further questions, feel free to leave a comment below, and Forex will answer right away.

Wishing you success in your trading career!!!