Polkastarter is a blockchain-based platform that was created to help out with launching cross-chain token pools and auctions. The project aims to help early-stage blockchain projects that aim to raise capital and get their tokens into circulation in the most efficient way possible. The platform believes that interoperability is crucial for achieving that.
The project offers cheap transactions, high security, ultra-fast swaps, user-friendly design, and the possibility to easily buy and move assets between different chains, which opens up new opportunities, access to major existing communities, and similar benefits that new projects should not miss out on.
How does Polkastarter (POLS) work?
Polkastarter is a permissionless DEX created to make cross-chain token pools and auctions. It allows users to raise capital in a decentralized environment, and it was inspired by Polkadot’s permissionless, cross-chain features. It allows young projects to raise funds from a community of retail and professional investors alike.
The project believes that strong fundraising and token swap environment can only thrive if there is an active and engaged community present. It also believes that the future of fund-raising will be 100% decentralized, but also that it can only scale if it permits interoperable token swaps on a well-governed platform, and with an incentivized community.
What problems does Polkastarter (POLS) solve?
Back in the day, developers who created their own crypto projects and were looking to launch them held Initial Coin Offerings (ICOs), which led to a lot of scams of all kinds. The markets were bullish, and people were ready to invest in anything, which resulted in a lot of money being stolen, and a lot of people being rather displeased. It was damaging for the reputation of the entire crypto industry, which is why IEOs eventually replaced ICOs.
IEOs, or Initial Exchange offerings, brought token launching to exchanges. Exchanges were in charge of looking into the projects and confirming that they are legitimate, thus only presenting their users with projects that are safe to invest in. In return, users could only invest by using the exchanges’ native cryptocurrencies, so if you wanted to invest in a project launched on the Binance Launchpad, you could only use BNB. With the arrival of DeFi, the same principle was applied on DEXes, leading to IDOs, or Initial DEX Offerings.
But, with all their benefits, IDOs were still too primitive, as the crypto industry desperately seeks interoperability — the connection between blockchains that would turn it into a network, instead of a group of small, isolated ecosystems. Polkastarter is one of the projects that is contributing to developing this by solving a number of problems along the way.
Simple-to-use Launchpad
One of the big problems that the project is solving is unnecessary complexity. It offers a simple-to-use launchpad that allows users to launch cross-chain token pools and auctions, but in a user-friendly way, so even those who have no experience with launching tokens can easily find their way around and set up an offering.
Security when raising funds or investing
Another issue that the project has strongly focused on was the matter of security when raising funds or investing in cryptos. Security is of utmost importance, as token offerings can be vulnerable events for projects that are selling the coins, as well as community members who are buying them. Polkastarter understands this well, and it used to rely on Ethereum’s extensive PoW mining system that consists of thousands of miners and nodes who work together to secure the network.
However, since its migration to Polkadot’s ecosystem, it started using the project’s hybrid consensus mechanism that consists of GRANDPA and BABE, using BABE to propose block producers, and GRANDPA to finalize them.
Liquidity pool launch
Polkastarter was built for cross-chain token pools and auctions, which means that projects who launch using its platform can raise capital in a decentralized, interoperable environment based on multiple blockchains, such as Ethereum, Polygon, Binance Smart Chain, and others.
Permissionless listings
According to Polkastarter, true decentralization only works if there is a permissionless environment. While they admit that some of their features may be enhanced for POLS token holders, anyone will be able to use the protocol to create and launch fixed swap token pools
Benefits of Polkastarter (POLS)
Polkastarter did not only focus on solving the problems that decentralized token offerings have been facing, but also on making the experience rich and rewarding for everyone involved. To that extent, it brought a number of features, such as:
Raising capital and distributing tokens
The project has a large number of token holders who are distributed both, geographically and demographically. This is one of the greatest advantages that it has to offer to token projects. Polkastarter pointed out that many centralized exchanges look at the amount and location of token holders as their key indicator on whether or not to list the project. Polkastarter, on the other hand, uses fixed token swap pools to ensure that most investors would get the opportunity to join.
Governance
Governance is a big part of DeFi projects, and Polkastarter has it as well. Like everywhere else, truly decentralized projects are not calling the shots on their own. Instead, they let their community of token holders do that, by making proposals and voting on them. Proposals on which the community reaches an agreement get implemented, so everyone has an opportunity to impact the project in their own way.
Rewards
Finally, the project also offers liquidity mining, so users who have some tokens that they do not plan to sell or use in other ways can easily lock them up into the liquidity pool to receive rewards.
Bottom Line
Polkastarter is a great project for projects that wish to launch their coins and tokens in the most efficient ways, reach major communities, and do it all with ease. It believes that the future of fundraising will be decentralized, and it created a perfect platform to satisfy the demand and needs of future investors. It offers a safe environment for investors and projects alike, and it believes in providing incentives, so it also offers staking rewards for those who wish to use their excess tokens for a good cause.
