Polkastarter is a protocol built for cross-chain token pools and auctions, enabling projects to raise capital on a decentralized, permissionless and interoperable environment based on Polkadot.
The platform allows cryptocurrency projects to raise funds by setting up a swap pool based on a fixed purchase rate for tokens. These so called “Fixed Swap Pools” have many advantages for token sale investors over traditional fundraising models like ICOs, IEOs and IDOs (Initial DEX Offerings).
With Polkastarter, decentralized projects will be able to raise and exchange capital cheap and fast. Users will be able to participate in a secure and compliant environment and to use assets that go way beyond the current ERC20 standard.
Startups and projects can raise funds on Polkastarter’s interoperable and decentralized infrastructure.
-Closed OTC deals with password protection
-Discounted sales with whitelisted addresses
-Token pools will include dutch and sealed-bid auctions
While IDOs on Uniswap certainly decreased the initial expense for a project’s token listing, that convenience came at a steep cost.
The crypto community quickly adjusted to this new token launch mechanism.
Savvy investors began to front-run listings immediately after a large amount of liquidity was provided to a Uniswap pool.
Some would purchase the entire pool in one swoop, causing the crypto asset to soar in price as others attempted to do the same. The term “ape in” to a liquidity pool was born to describe those who turned up the gas on their MetaMask wallet to buy out entire pools of newly-created tokens at lower prices before others did the same.
The killer features of Polkastarter is the possibility of making both fixed swap pools and cross-chain swaps, powered by the Polkadot ecosystem, which can provide higher throughput for faster and cheaper transactions while staying connected to the Ethereum Network and other blockchains for liquidity.
The utility of the token is two-fold;
-Governance: Token holders will be able to vote on product features, token utility, types of auctions and even decide which projects get to be featured by Polkastarter
-Fees: Transaction fees will be paid in $POLS
Token pools on Polkastarter will incur a fixed fee, paid by the pool creator. If a pool creator receives 1000 DOT worth of a token and the fee is fixed at 1%, 10 DOT will be deducted from his purchase and added to the staking reward pool.
Staking rewards will also be distributed in 24-hour cycles. If a user holds 2% of the total staked POLS during that 24-hour cycle, that user will get the equivalent of 2% of all the staking rewards for that same period. If during that period Polkastarter generated 10,000 DOT, that user will get 200 DOT.
Polkastarter network users are only eligible for staking after providing liquidity to the Polkastarter pools. Contributors can lose their staking status if they stop providing liquidity to the network.
For high-demand pools, access can be limited to the top liquidity and network contributors. Password protection and whitelisting are potential features that could provide additional limits. However, to best align the interests of the entire Polkastarter community, the POLS token can be used as a coordinating mechanism.
For instance, if community members want access to certain token pools, they must stake POLS tokens. Of course, token pool creators have full autonomy over this process. For projects that use the Polkastarter platform, our goal is to craft diverse token holder communities loyal to the project and invested in its long-term success.
The Polkastarter governance framework aims to build a solid and sustainable protocol for development and usage. POLS holders will be able to vote for ecosystem initiatives, new features development, liquidity rewards distribution specs, and other applications.