What Is Polkadex (PDEX) And How Does It Work? | KuCoin Crypto Gem Observer

2021/04/19 00:07:50

To this day, there is still much debate around the benefits of centralized exchanges versus their decentralized counterparts. While DEXs are the champions when it comes to anonymity, their low liquidity in comparison with CEXs can be a major deterrent. However, there are some projects out there looking to bring DEXs to the masses.

This is exactly what Polkadex is about. It set out to build the perfect decentralized exchange in order to promote financial inclusion, create a bridge between traditional and decentralized markets, and ultimately lay the foundation for a tokenized future.


What Is Polkadex?

Polkadex is a fully decentralized, peer to peer, orderbook-based cryptocurrency exchange for the DeFi ecosystem in Substrate. It is built as a parachain of Polkadot, offering crypto-crypto and crypto-fiat assets trading.

It aims to solve the issues of traditional DEXs by combining the speed and convenience of centralized exchanges while offering the security of a decentralized design. This is what gives Polkadex the edge over the current DEX market and will play a key role in increasing the adoption of DeFi.

How Does Polkadex Work?

What Polkadex is bringing to the table is a set of powerful features that make it unique in the DEX market. As a way to bypass the common issue of low liquidity faced by DEXs, Polkadex employs a fluid switch protocol that switches between AMM and orderbook for matching orders. This makes the experience seamless for users while guaranteeing trades.

Other features such as the on-chain trading bot make the exchange viable for high-frequency trading (HFT), an attractive feature for retail and institutional investors. Paired with the high TPS and optimized performance of the platform, Polkadex is making waves in the market.

The Polkadex Network will eventually become a parachain of Polkadot once it secures a parachain slot. This will open the path towards DOT and other assets in the Polkadot Ecosystem, while also providing access to the Substrate technology.

Who Created Polkadex?

The Polkadex project was the creation of a talented team of entrepreneurs and engineers looking to bring about change with what they describe as the perfect decentralized exchange. Along with the core team, a number of key advisors are also helping to direct the project, leveraging their expertise in the blockchain space and further afield.

What Is the PDEX Token?

PDEX is the main token in the Polkadex ecosystem. Holders of PDEX will get access to some great features. Benefits include feeless transactions with verifiability, opportunities for high-frequency trading, trading bots and other unique features.


The token distribution will be as follows:

  • Treasury: 41%
  • Private Round: 10.193%
  • Liquidity Mining: 10%
  • Founders and Team: 9%
  • Strategic Round: 8%
  • Seed Round: 7%
  • Marketing, Ecosystem and Partnerships: 6.807%
  • Advisory: 6%
  • Community Round: 2%

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Closing Thoughts

The role of Polkadex is clear: solve the issues DEXs currently face by innovating with new technologies and features. This can be seen with its ‘fluid switch protocol’ feature, which alone fixes a common problem that plagues DEXs - low liquidity.

In addition to innovating, Polkadex has also set its sights on promoting the further adoption of DeFi in the wider market. In the end, it has a strong use case and vision that it appears is on the right track to achieve. Interest in DEXs is only going to increase as time goes on, so Polkadex is well placed to take advantage of this movement in the market.

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