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According to the official announcement, Polkastarter 1.0 Beta has gone live on the Ethereum mainnet.
Polkastarter is launching a system whereby approved projects can launch Initial Decentralized Exchange Offerings (IDOs) with fixed tokens pricing. Per a Cointelegraph report, Polkastarter is a decentralized exchange built atop the Polkadot ecosystem, and its newly adopted system for new projects tokens sale is so targeted at ensuring an equitable purchase of assets, devoid of mass accumulations by market whales.
Just recently, it has been officially revealed that Polkastarter 1.0 Beta has gone live.
The coming of Decentralized exchanges brought with it a new form of raising liquidity in the crypto space. Prior to this time, centralized exchanges like Binance, Coinbase, OKEx amongst others support fundraising through a model known as Initial Exchange Offerings (IEO). Decentralized exchanges (DEXs) brought their own version, the IDO in the second half of 2019, a system that saw increased embraced with the Decentralized Finance (DeFi) boom of 2020.
The Polkastarter system, in which many projects are already lined up to participate, in will be utilizing a system known as “Fixed Swap Pool,” a system in which projects can list their tokens and set up a pool with a fixed per-token purchase rate. Billed to go live today December 15th, the projects SpiderDAO and MahaDAO, two independent firms on the Polkadot system will be trialing the system upon launch.
Mechanism of the Polkastarter Tokens Sale
As is typical of every IDO, the proposed project whose token is to be listed will provide the liquidity for both the sale asset and the quote currency for it to trade against. The price of the tokens is then adjusted by Automated Market Makers such as Uniswap until the supply runs out. The Polkastarter tokens sale system has a slight alteration in that the tokens will come at a fixed price until the supply of the tokens is depleted.
Besides reducing the volatility around the tokens in the course of the IDO, the new Polkastarter fundraise system allows for increased transparency as the amount of money raised in the course of the offering can easily be estimated. This will serve as the major source of trust from investors to the project administrators.
In compliance with global financial regulations, the Polkastarter ecosystem will be offering anti-money laundering as well as Know Your Customer (KYC) capabilities to projects that wish to debut their tokens on its platform.
As a decentralized blockchain network, the Polkadot network has made a series of advances to promote the course of DeFi. Besides this scheduled Polkastarter initiative, the blockchain recently joined hands with Chainlink in order to promote its platform’s decentralized nature.