IDOs or DEX Initial Offerings are about a crowdfunding method in the blockchain arena that is becoming increasingly popular. Among the most popular IDO platforms, Polkastarter has been gaining wide recognition due to its scalability and interoperability.
Polkastarter is a fully decentralized fundraising platform that enables blockchain users and companies to fund and launch their projects. Polkastarter excels at empowering projects with the goal of creating multi-chain token pools. With this platform, blockchain projects can increase their exposure and grow their communities, as well as connect with a pool of advisors and collaborators.
The platform has a native utility token called POLS that aids governance on the platform and is used for participation in IDOs. In addition, with this token users can do POLS holding or staking to increase their POLS Power.
In this article we tell you all about what Polkastarter is and how it works.
Polkastarter’s history has its beginnings in 2020, when the platform was founded. Its founders are Daniel Stockhaus, Tiago Martins and Miguel Leite. Those founders launched the platform with the goal of creating an IDO launchpad geared towards decentralized, multi-chain token pools. Polkastarter offers cryptocurrency startups the possibility to raise capital in a fixed swap pool and distribute their new tokens to early stage investors.
This platform, during the first quarter of this year alone, has helped more than 100 projects in fundraising, generating a capital of more than 45 million dollars. This has been achieved through public and private sales. In addition to IDOs, the platform also enables crypto game launchpads, metaverse land sales, among other NFT sales.
As we have already mentioned above, Polkastarter is a decentralized, multi-chain fundraising platform that stands out for offering low transaction fees. Thanks to this platform, new projects can afford to launch on numerous blockchains. Some of these blockchains can be Ethereum, Polygon, Celo or Avalanche.
Projects can accept in IDOs any type of token compatible with these blockchains during IDO sales.
Polkastarter offers numerous features. These include fixed swap pools, IDO farming, Polkastarter Gaming, among others. We will look at them in more detail below.
Fixed Swap Pools are a key feature of the Polkastarter ecosystem. Fixed Swap Pools differ from the Automated Market Maker (AMM) model adopted by Uniswap and decentralized exchanges (DEX) in that Polkastarter’s liquidity pools carry out swap orders at a fixed price.
Generally, in DeFi’s AMM pools, token prices are dynamically adjusted according to market supply and demand. This system often results in high volatility and price fluctuations. In order to stabilize these prices, the Polkastarter platform allows projects to publish their new tokens at fixed prices. The price set by the project will be maintained as long as there are tokens left in the original supply.
In addition, projects will also have the ability to configure pools with additional parameters to exercise more control over pool fundraising. An example of what the project will be able to do is to control the maximum investment per user, as well as the number of investors admitted to a pool. It should be noted that all this process will be carried out by smart contracts in charge of guaranteeing a fair and transparent distribution of the token.
One of the new features launched by the Polkastarter platform was Gaming Guild or PGG. PGG was launched with the goal of helping the platform adapt to the growing popularity of play-to-earn (P2E) gaming. The goal of this launch is to connect GameFi projects and gaming enthusiasts from anywhere in the world.
Polkastarter Gaming launched a fund totaling $2 million with the goal of supporting metaverse projects with a promising future. Another goal of the Polkastarter Gaming Guild (PGG) was to offer grants to help new play-to-earn users navigate the metaverse. These users will have the possibility of other play-to-earn IDOs in the future and the launch of an NFT marketplace platform.
Generally, users participating in IDOs usually make a full withdrawal of their tokens immediately after the initial distribution. All this with the aim of selling the tokens in the market. This situation causes high volatility in the price of the asset. In order to provide a solution to this problem, Polkastarter released the Polkastarter V3 update. This update included IDO farming.
This update was developed with the main objective of achieving a reduction in the sale of tokens. Its operation is very similar to other staking farming. The longer the deposit remains in staking, the greater the number of rewards the user will receive. With each user who withdraws his deposit, the APY of the pool will go up and will give the stakers who stay in the pool an even higher return.
It is worth noting that Polkastarter also includes a list of admissions. This model is known as KYC and is intended to increase security. This KYC feature allows only those users who have been previously verified to participate in IDOs. Each project can design the KYC requirements that users must complete before they can participate in IDOs. Projects can also place restrictions on participants from certain geographic regions. This gives the team flexibility and control over the list admission process.