BlockTalks x Polkadex AMA Transcript!

Hello! BlockTalkers & Blockchain Enthusiastic!

We recently hosted an AMA with Polkadex, on February 12th at 11.00 AM UTC. Many of you might have participated or many of not. But we make sure no one missed out from the knowledge shared by Gautham J, CEO & Technical Lead & Vivek Prasannan, Executive Director at Polkadex so here we are up with the AMA transcript, for those who missed the live session, this blog post will be a saver & feeder of knowledge for them.

Introduction Questions Asked By Team BlockTalks

Q1. Could you please introduce Polkadex to our community in layman’s term?

Ans Polkadex is a fully decentralized, peer-to-peer orderbook-based cryptocurrency exchange for the Defi ecosystem in substrate. With Polkadex, you get the same trading functionality and performance of a centralized exchange, but with the added benefits of better user-experience and fully decentralized security. Polkadex is unlocking the existing and future financial markets for everyone, bridging traditional money markets to a decentralized store of value and trust, thereby preparing the world for a tokenized future.

Q2. What are the advantages of Polkadex to other alternatives in the Blockchain field?

Ans — The key difference that Polkadex brings to users are the following:

  1. Onchain market making — first in the industry. Blockchain that market makes itself! Fluid trading interface with tighter spreads, no slippage, happy traders!
  2. Perpetual liquidity mining — first in the industry, considered to the holy grail of liquidity mining algorithms.
  3. Fluid switch protocol that switches to a liquidity pool to provide sufficient liquidity in the orderbook.
  4. Fully refactored and the only dedicated trading engine on substrate, the same framework that powers Polkadot.
  5. First project that tackled the problem of frontrunning with feeless transactions.
  6. CCXT support for market makers and trading bots.
  7. Integration with Hummingbot.
  8. Direct integration with Ethereum and REN possible using trustless bridges.

Q3. What are the major milestones Polkadex achieved so far & what are in the future pipeline?

Ans — 1. Deployed the working testnet
2. Completely eliminated the problem of front running.
3. Gas fees are not an issue anymore since Polkadex uses feeless transactions for swaps and order placing.
Upcoming Milestones
1. CCXT api to enable trading bot support.

Questions Asked on Twitter For Polkadex Team!

Q1. Polkadex collaborates with KILT Protocol and Fractal. What are the benefits of this cooperation for all parties? What do you plan to achieve together?

Ans — Vivek — In the long turn, regulation will catch up with centralized points of access to any decentralized networks. We need to make sure that we accommodate this without diluting the principles of decentralization. Therefore, we will be the first decentralized exchange to implement ‘zero knowledge proof’ identity on the blockchain on its exchange interface. This is enabled using KILT blockchain and Fractal. Identity is automatically taken care of by the blockchain and no single authority will have control over it.

Gautham — Polkadex is all about building an “unhackable” crypto exchange so having a long term goal like this means we need to follow regulations rather than running away from it.

Q2. The liquidity is a common issue for DEXes, but you use AMMs to solve this problem. Can you explain how that works and what’s the role of the AMMs within the Polkadex platform?

Ans — Yes, we use AMMs as pools of liquidity and we have some algorithms on chain which will use these pools to market make in Polkadex’s orderbook to ensure a spread as low as 0.1%. This is one of a kind in this space.

Q3. POLKADEX introduces FSP (Fluid Switch Protocol) that will showcase how multiple AMMs interact with the orderbook. So can you tell us more details about FSP & how it works? Also aside from solving Liquidity Problems, what else does Amm Pools intended to solve?

Ans — Gautham — FSP is the name of the collective protocol that allows orderbook to take liquidity from AMM pools and vice-versa. This means that Orderbook will become arbitrage the AMM pool and bring liquidity to orderbook.
Traders who needs more control over the price at which trades are executed can use orderbook and someone who just needs to exchange a very small amount can do it directly with our AMM pool.

Vivek — AMM pools are also part of our liquidity mining program and we have something called perpetual liquidity mining algorithm that will ensure liquidity flows seemlessly for the blockchain to market make itself.

Q4. I would like to know how many trades by second you will be able to manage, and also when a trade is done, if the coin will be instantly available, or we will need to wait the pending transactions like on other Dex.

Ans — Gautham — We have about 200 TPS right now, and the balances are available as soon as the trade is completed.

Vivek — If they try to withdraw their assets to the native blockchain, it will involve a single hop outside from the polkadex chain to their respective native chain.

Q5. How is Polkadex doing with the security issue? According to your roadmap between this Q1-Q2 you already launch your Mainnet Have you already done the smart contracts audit beforehand?

Ans — We have the security audit of our blockchain (substrate custom pallets) planned for March. It will be an exhaustive audit and details will be publicly available.

Questions Asked by our BlockTalks Community Members during live Session to Polkadex Team!!

Q1. How many wallets that can support $Your Token until now? And do you have any plan to build your own wallet?

Ans — We will be buidling our own wallet since we allow traders to exit to their native blockchains trustlessly from Polkadex. This is not supported in other production ready wallets out there.

Q2. Since the Polkadex Swap is completely decentralized, what will be the role of Polkadex token holders in governance?

Ans — Polkadex governance will have a crucial role to play in the future. Close to 50% of our total supply will be locked in governance. It will be used for ecosystem growth and also parachain adoption for DOT holders in future. Governance will have a significant role with the control it has on the network.

Q3. Can you explain how the Institutional market making works on Polkadex?

Ans — We are implementing CCXT based APIs which means trading bots like Hummingbot 3Commas and other centralized trading bot companies and also the institutional market makers can use this to market make in Polkadex.

Q4. While you build your project, do you take into account community feedbacks and demands?

Ans — Ofcourse, we have a very active community telegram group. The testnet is also out for users to test and send their feedback. The group is fully moderated and happy to received your feedback and comments.

Q5. Can you please tell us about the basis of comparisons between Polkadex and it’s presiding Polkaswap? Is this like the Binance and Binancedex design? What similarities and differences do they have?

Ans — Polkaswap relies on sora network and their engine seems to be on hyperledger ( not sure if its decentralized?). If you try to compare Polkaswap to Polkadex, you would be comparing apples to oranges.

Q6. I don’t know much about the KILT protocol developed by Polkadex, can you tell us more about it, the function it does and how? How safe are users data on Polkadex? What mechanism have you put in place to help ensure that our privacy do not get compromised?

Ans — KILT is not developed by us. It is a separate project of it’s own. Ingo Rube is the CEO of KILT who is the man behind decentralized identity platform. KILT allows traders to very KYC data using Zero Knowledge proofs. In layman terms,
Trader verifies the KYC on KILT and get’s a cryptographic proof which he or she stores in their wallet. When they wants to login in to Polkadex they provide this Proof to Polkadex for verification. Since Polkadex is receiving a cryptographic proof and not the reall KYC data, Polkadex don’t store or view the data but we have the proof that trader is following KYC guidelines.

This solves the problem of identifying traders and misusing KYC data of traders by Polkadex. The trader stores the KYC data and not Polkadex or even KILT.

Q7. The problems of DEX are not only limited to the lack of liquidity, many are difficult to understand and use. How does Polkadex solve this UX/UI problem?

Ans — yes, all the features of FSP and frontrunning etc are abstracted away from end users and they just need to know how to trade in a centralized exchange and Polkadex provides the same experience.

Q8. Nowdays So many Rug Pulls and exit scam happening . How Users can trust your project and how you are different from others?

Ans — 1. First project to announce an orderbook based exchange in the Polkadot ecosystem.
2. Project bootstrapped by web3 open grants program.
3. Backed by leading VC firms and thought leaders.

Do your own DD. We don’t want to make any unnecessary claims. We are just focused in building the product. We are sufficiently funded at this moment to develop the product. Also, this is not an anonymous project. All investments made into polkadex are fully audited and under proper legal agreement.

Q9. Can you share with us any link to sign up for the your email updates? Is there any comparison between polkadex and polka swap?

Ans — You can subscribe to mail updates from our website www.polkadex.trade
Polkadex and Polkaswap are two different projects.

Q10. What are the plans to educate and raise awareness and adoption among the community to make more people understand about the project easily?

Ans — We are preparing a set of tutorial writeups and video blogs to enable the community to learn and create awareness about Polkadex and its trading interface. Polkadex is not only a protocol in itself, it has a central point of access in the polkadex exchange interface. Therefore, from a product perspective, it is necessary to educate users on how to use it. Rest assured, native token exchange will be more seemless when compared to a centralized exchange and tokens are swapped in the blockchain itself. So, you could be trading out of your own hardware wallet :)

Q11. Explain your plans on global expansion,
Q1) is it only market you are focusing All the time?
Q2) Or you focus on building or developing and getting customers and users, or partnerships?

Ans — Yes, we have customer acquisition and liquidity mining plans in place that helps Polkadex grow it’s user base. We intend to collaborate with all the teams in Polkadot and Ethereum and help those teams to get listed in Polkadex.
In terms of expansion, we intend to bring fiat currency to Polkadex, which means anyone can buy any crypto using credit/debit card and get out to native blockchain without going through a centralized gateway, other than the credit/debit card part.

Here are some important links of Polkadex 👇
🌎 Website:
https://www.polkadex.trade/
📱Twitter: https://twitter.com/polkadex
📢 Telegram: https://t.me/Polkadex

BlockTalks is all about Blockchains & Crypto. We do discussions about new Blockchain projects, the innovations & such more.

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