PolkaBridge Launched MultiChain AMM — Cutting-Edge Decentralized Exchange

The PolkaBridge team has been hard at work lately as you might have noticed from the flurry of developments happening on the platform. It’s keeping us extremely busy. We have recently announced Polkadot onboarding (a gradual process as the Polkadot protocol is being deployed in phases), a couple of airdrops to reward our community and released details for the upcoming transition to the Polygon Ecosystem — an Ethereum scaling solution so users can escape high fees and long waiting times of the Ethereum base layer. But now, let’s go a bit further!

We are proud to announce that we are developing a multi-chain Automated Market Maker (AMM) type decentralized exchange, which will allow the users to trade assets on different blockchains. It will be a new addition to our DeFi / NFT focused ecosystem and is certainly going to be the flagship PolkaBridge product. The development is in its final stages and we are very close to a public launch. It will support Ethereum, Polygon, Solana, Polkadot and Binance Smart Chain (BSC) — though the functionality will be deployed gradually.

What Is An Automated Market Maker (AMM)?

An Automated Market Maker (AMM) is a liquidity aggregator and decentralized exchange, which allows for order-matching without using a traditional order-book. Instead of offers (ask) and counter offers (bids), it utilizes algorithms with smart contracts which deterministically compute the asset price at any given time automatically and uses liquidity pools to execute swaps. A liquidity pool is itself a smart contract, containing assets from different users, looking to put their capital to work.

How Would The Users Benefit From The PolkaBridge Multi Chain AMM?

PolkaBridge AMMs will allow convenient and rapid trades, without any fear of censor or funds seizure. They would be non custodial and decentralized, meaning that the funds wouldn’t be held by any party, during the trade.

The protocol would also allow market making and liquidity to flow freely on multiple blockchains and ensure that users are able to make trades on assets on different blockchains, from a single simple convenient interface.

PolkaBridge multi chain AMM decentralized exchange would charge 0.2% fees per swap, out of which 80% would go to the liquidity providers and the remaining 20% would be routed to a treasury contract, later used to buy back the native PBR token and burn it.

Crypto benefits as a whole through PolkaBridge allowing liquidity mining for users to earn yield and in the meantime, fostering an atmosphere of co-operation and strengthening the connection between different blockchains.

Polkadot, which we base on, has the ideology of an interconnected and synergized multi-chain world. We have the same aim and goal. The team pledges to continue development of blockchain based Web3. We are also planning a cross-swap AMM after this.

This platform would also ensure that users are able to hold assets on different chains and can trade them easily. It is also likely to have integrations with other DeFi protocols and be used for providing lending/ borrowing, staking and yield farming opportunities.

How Value Accrues To The PBR Token?

PBR token use cases currently include their usage in governance, staking, farming and token lockups for acquiring new project tokens on the launchpad platform. The launch of the multi chain AMM would change things drastically and for the better.

Being the native token of the platform, PolkaBridge PBR would benefit directly from swap fees, as a certain portion 20% of the 0.2% collected fees would be used to buy back and burn PBR tokens, enhancing value through reduction in circulating supply.

Already, we charge a 0.5% on all on-chain PBR transfers, 90% of which is routed to the pool and the rest 10% is sent to the burn address. With the advent of multi chain AMM, the burning stands to accelerate further.

There aren’t many multi chain AMM, which currently exists. Most decentralized exchanges of this sort operate on a single blockchain or at best two. PolkaBridge stands to gain trading volume and user adoption by offering support for multiple prominent blockchains.

As the platform usage increases, the PBR burn rate also accelerates, creating value for our token holders. The expected upcoming integration with DeFi protocols would only make things better for the platform and the token.

PolkaBridge Multi Chain AMM — How To Use

At launch, PolkaBridge multi chain AMM type decentralized exchange would support Ethereum and Binance Smart Chain. Once, we have successfully tested and refined the protocol. We will start to add support for Polygon, Solana and Polkadot. How does it work? Actually, pretty much the same as the standard Uniswap interface, which almost every crypto user is familiar with. So there won’t be any learning curve and the multi chain AMM can be used right away.

To begin with, connect your wallet. Ethereum and Binance Smart Chain generally use MetaMask. So does Polygon. The wallets for Solana and Polkadot would be added in the future. Simply select assets to swap and click Swap. Authorize the tx in the wallet to complete the swap. The swapped asset will be sent to your wallet.

PolkaBridge multi chain AMM type decentralized exchange would have the liquidity addition and removal feature in the same manner as other AMMs. There is provision for double sided liquidity, meaning one asset has to be always contributed to gain pool share and liquidity mining rewards. Connect the wallet, select your assets, add liquidity and click Add Liquidity. Authorize the transaction and it’s done.

The liquidity removals are processed in the same manner. Every user receives Liquidity Provider (LP tokens) — representing their shares in the liquidity pool. Once you are removing liquidity from the pool — the two assets that you contributed to the pool would be returned back with the swap fees profit or yield that you made on them.

Lastly, you can check the detailed stats on the overview page, which displays the important metrics pertinent to the decentralized exchange. This can include volume, total value locked, fees earned etc. The same stats would also be available to specific liquidity pools and users can simply search by contract addresses. We are excited about the PolkaBridge multi chain AMM launch and we hope that you are too!

About PolkaBridge

PolkaBridge is a decentralized all-in-one financial applications platform. The PolkaBridge ecosystem is expected to include cross-chain AMM, Farming, Lending, Fundraising platform (Launchpad), Prediction, NFT, and more. All products will be developed with Polkadot in center.

❇️ Website: https://polkabridge.org

❇️ Farming https://farm.polkabridge.org

❇️ Staking https://stake.polkabridge.org

❇️ LaunchPad https://launchpad.polkabridge.org

❇️ Swap (AMM) https://swap.polkabridge.org

❇️ Twitter: https://twitter.com/realpolkabridge

❇️ Medium: https://medium.com/@polkabridge

❇️ Github: https://github.com/cyclese96

❇️ Telegram Channel https://t.me/polkabridge

❇️ Telegram Group https://t.me/polkabridgegroup

❇️ Discord https://discord.gg/G3NDrcq6GW

❇️ Reddit https://www.reddit.com/r/polkabridge_official

❇️ CoinMarketcap https://coinmarketcap.com/currencies/polkabridge

❇️ Coingecko https://www.coingecko.com/en/coins/polkabridge

The first decentralized bridge between Polkadot platform and other blockchains