Polkastarter is a completely decentralized protocol intended for cross-chain token sales and auctions built on Polkadot, a well-known Ethereum rival. Polkastarter was officially announced in September 2020 with the launch of its native token on Uniswap and had its start on December 13, 2020.
At the time of writing, the platform is not a complete final product and many options are still to be developed. The project’s team promises lots of advantages compared to well-known platforms like Uniswap, Primablock, or Bounce: cross-chain pools, support of any asset, governance model, fixed pools, and whitelisted pools. None of these platforms provides all these features except Polkastarter. The team insists that they push on to bring more functionality to their smart contracts including staking and more versatility to the POLS token.
The project aims to satisfy the increased users’ demand for cheap transactions, secure ultra-fast swaps, user-friendly design, the possibility to buy and move assets between blockchains.
So-called Fixed Swap Pools are a basic feature of the network that is designed to enable crypto projects to conduct their Initial Dex Offerings (IDOs). The projects can list their tokens on Polkastarter and create a pool with a fixed purchase rate. The main peculiarity of such pools is that the fixed price will be supported for as long as there are tokens remaining in the original supply.
The Polkastarter’s developers are sure that such kinds of pools have a number of advantages. These are a fair price, wide distribution of token holders, and reduced token offering costs. It is not difficult to calculate the amount raised and tokens sold.
At the time of launch, there were three pools created to raise funds that offered swaps with SpiderDAO, MahaDAO, and POLS, a native project’s cryptocurrency. At the time of writing, there are already 50 active fixed pools on the platform and several pools are upcoming. It is possible to subscribe to the Telegram channel to get notified about new pools and other relevant events.
Private Pools and Whitelisting
There are two types of pools’ access on Polkastarter mentioned in official documents: public and private. At the time of writing, all pools on the platform are private.
The main condition for participation in the private pool is getting to the whitelist that provides the access to the IDO. Usually, the users have to complete some tasks to be included in the whitelist. For example, they can be asked to subscribe to the Twitter account, leave a comment, subscribe to the Telegram channel, etc. Then it is necessary to fill in a special form and if an applicant is successful, he or she will be notified by email. The links on newly opened whitelists can be found in the project’s Twitter account.
The POLS holders have some advantages over others and can get additional chances to participate in IDO. There can be opened additional pools within the token sale that are designed for those who hold POLS for a certain period of time. For example, those who held 3,000 POLS got access to a separate pool with 222 222 DVG tokens at the time of DAOventures’s IDO that took place on February 18, 2021.
With Polkastarter, any person has a right to create and launch a fixed swap token pool via the permissionless listing. The availability of this feature may lead to some negative effects but the project’s team promises the integration of counter-measures to prevent bot-based and malicious pools.
To start a pool, it is necessary to provide some pool details: token contract address, the name of the pool, the limit per address, type of pool access (public, private, whitelist), and token price.
Polkastarter token (POLS) is a native coin of the platform. This is a utility and governance De-Fi ERC-20 token. Its owners will be able to vote on product features, token utility, types of auctions, and structure of the platform. Transaction fees are paid also in POLS. POLS can be used to receive pool rewards or access to the pool.
POLS was launched on September 29, 2020, on Uniswap. It immediately took off providing its early investors with great returns. On the first day after the launch, its price increased by 750%. Moreover, there had already been 875 thousand USD raised in seed and private sale rounds before the start of public sales. The raised funds are intended for product development (45%), liquidity and exchanges (30%), ecosystem growth (20%), and legal and accountancy (5%).
The total supply is 100 million tokens. The token is distributed as follows: private sale (27.5%), liquidity fund (22.5%), seed sale (15%), marketing fund (15%), foundation reserve (10%), team and advisors (10%).
Polkastarter provides a number of anty-scam measures to protect its users. The platform cooperates with Covalent, a project that provides data from the blockchain to inform investors about features and details of crypto assets, projects, and wallets.
Fixed pools help to provide total transparency and avoid speculative prices.
But the platform failed to avoid fraud after the POLS launch. Any person can add their crypto to Uniswap, and according to Astrotools, three fake coins with the same name were added on the platform by unknown parties. Two of them remained unnoticed but inexperienced traders invested over 30 thousand USD in the third one confusing it with real POLS. In a day, there were 15 false POLS traded on Uniswap.
The team list available on the official website is rather short. There are only two individuals in it. They are Daniel Stockhaus and Tiago Martins, co-founders of the project.
Daniel Stockhaus is the CEO. He lives in London (Great Britain) and he is a serial tech entrepreneur. He is also a co-founder of two other projects: Oliphaunt Ltd, a digital agency, and liGo, an online store. Tiago Martins is the CTO of the project. He lives in Porto (Portugal) and he obtained extensive experience in the digital world and crypto assets prior to his work at Polkastarter. Danilo S. Carlucci and Matthew Dibb are mentioned as advisors.