Polkadot ecosystem, the Ethereum’s Contender - Crypto Academy / S4W7 - Homework Post for @allbert
Hello steemains, nice to be here again. Thanks professor @allbert for an interesting lecture on Polkadot ecosystem. Below is my task post.
1-Explain in your own words why you chose it and why you think it is relevant to the world.
POLKASTARTER
Polkastarter protocol is a permissionless project built to handling cross-chain (fixed swap token pool) pools of token that is easily used by anyone, and aids in coordinating auctions for users of the protocol with ease, and further enables projects on its platform to raise funds as capital in a decentralized and well organized environment provided by Polkadot ecosystem. Although, Polkastarter protocol was initially devoted on Ethereum blockchain in 2020, where it was well used for IDO initial offerings, as at this year Polkastarter moved to Polkadot network ecosystem, where it is presently built on.
The projects on Polkastarter protocol raise funds by creating a fixed swap pool at a fixed rates to purchase tokens. This fixed swap pool is advantageous to token investors and crypto traders, as they are able to maintain the price of the tokens the purchase process until the purchase of initial supply is completed and successful. Polkastarter protocol provides a secured environment for decentralized projects to raise and exchange funds at a cheap rate and it's process is super fast.
I chose, Polkastarter project because its one of the third generation blockchains that proffers solution to the shortcomings (like stability) of Ethereum blockchain, it also has a great vision and feature of interoperability that provides a secured environment for investors to raise capital and be able to swap tokens, thereby creating liquidity in the ecosystem. Polkastarter also provides tokens standards beyond the usual ERC-20 token of Ethereum and resolve scalability of Ethereum by providing super fast transactions with cheap transaction fees and quick transaction confirmation process, all in the bid to solve the network congestion on Ethereum blockchain.
Polkastarter is currently relevant in the world, as it provides a platform for other projects to create cross-chain exchange groups to enable them raise capital and swap tokens in a well secured environment and at a fast transactionrate. The interoperability feature of Polkastarter is of great relevance in crypto world today and all exchanges on this protocol is run with smart contracts
Description of the project and its platform. (Screenshots needed)
Polkastarter project is a decentralized, open-source platform that supports young individuals in fundraising capitals with ease by creating a cross-chain exchange and token swaps, which can be distributed amongst them with ease at the same time. Polkastarter protocol was developed and co-founded by Tiago Martins and Daniel Stockhaus. Daniel Stockhaus is currently the CEO of Polkastarter, is a serial entrepreneur and has successfully co-founded other e-commerce firm like LiGo. And Tiago Martins is the CTO of Polkastarter, a former professor of computer science and co-founder of an online platform known as Codeplace. Apart from the executive members of this project, Polkastarter project has a well experienced team that act as adviors and non-public members.
Polkastarter project team
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The Polkastarter project is ranked #37 on Polkadot projects.
Polkastarter is built on Polkadot ecosystem with 2.0 version, that provides a well secured and interoperable environment that makes it easy for its users to buy assets and swap tokens with their smart contracts. Polkastarter protocol is is easy to use and implements cross-chain exchange with the support of Polkadot ecosystem, with better transactions performance that is super fast and cheap too, as compared to when they were connected to Ethereum network and other blockchains for creating liquidity.
Polkastarter platform
At the top of Polkastarter platform we can see features like; Projects, Allocations, Dashboard and connect wallets.
From the Polkastarter protocol main page as seen above, we can see some projects that will be launched soon on the platform. Polkastarter protocol seeks to partake in NFT games projects like legend of fantasy wars, as NFT games is one of the leading sectors in crypto space and has generated huge revenue in this year 2021.
Still at the interface of Polkastarter platform, we can get some information about Polkastarter on; What is an IDO (Initial Decentralized Offering)? how to participate in a Polkastarter IDO?, and how to buy Polkastarter POLS token?
Some already funded projects by Polkastarter protocol are also listed below the interface, and all are fully sold out. A total of 80 funded projects has been recorded on Polkastarter platform, with 20,105 unique participants and a raised fund of $16,239,244.
Polkastarter project also provides its users a social media platform for communication amongst themselves, as it's a platform for helping young minds raise funds or capital for investments. Some of Polkastarter social media handles are listed below;
Discord
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LinkedIn
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Screenshot From Instagram
Screenshot From Telegram account
The native token of Polkastarter protocol is POLS token, it is the utility token used in Polkastarter ecosystem, it is used to create liquidity, gives governing power to users that possess the POLS token and gives privilege to participate in swap pools as a holder of POLS token. The token is also used for paying transaction charges.
At the time of writing the POLS token was ranked #193 on CoinMarketCap.com. its price value is $3.20, with Market cap of $260,079,803, and circulating supply of 81,301,332.00 POLS.
Polkastarter protocol was virtually launched live in December 2020, has recorded a quick growth level in crypto space, as it has grown to be one of most used platforms for IDO's. This growth is represented graphically below.
Polkastarter is a decentralized protocol that is unique from other decentralized platforms. Polkastarter built on Polkadot ecosystem, has no limit for an entry making it much more easy for a blockchain to be part of its ecosystem. Below is a schematic summary of how Polkastarter duffers from other decentralized protocols like Uniswap, Bounce and Primablock.
3- Real functionalities and applications. (Screenshots needed)
Polkastarter project functions in providing AMM based dynamic fixed swap pools for token swaps to its users at a fixed price. The fixed swap pools with smart contracts provide more control to projects on the platform conducting IDOs, as they can also control the maximum amount of investment by each user or the number of investors to be allowed in the pool. All IDO projects can be launched on Polkastarter platform but the final endorsement is done by the Polkastarter council members.
The functionality of creating liquidity by Polkastarter platform, brings about an even distribution of a fixed amount of POLS token to its users on a daily basis. For instance, if there's swap fixed for 24hrs at 1000 ETH, the user that contributed 100 ETHs of that volume gets a liquidity reward of 10% daily, while 22.5% of the total POLS supplied is allocated for mining liquidity. Users who provide liquidity to Polkastarter pools are the ones eligible to stake in the network, and users who stop providing liquidity to the platform will lose their staking power.
The functionality of Polkastarter is attributed to its unique features, and as it is built on Polkadot ecosystem. Some of there feature include;
•Scalability and high transaction speed:
Polkastarter utilizes horizontal stability that is in parachains shape, and a vertical stability through it's GRANDPA consensus mechanism that enables the process of parallel pipelining of blocks(asynchronous block formation).
Horizontal scalability
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Vertical scalability
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•The Governance and upgradibilility feature
•The unique interoperability feature
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Application of Polkastarter protocol
Polkastarter protocol is applicable for private fundraising projects. With Polkastarter platform private groups are able to raise capitals for small communities and retail investors. It creates an avenue for private groups to have a closed over the counter (OTC) deals. Polkastarter as a permissionless platform with a well secured environment built on Polkadot ecosystem, allows anyone to create private pools for fundraising, these pools,are well secured with passwords. The members of the community cannot partake in an IDO except their address is whitelisted as a project fundraising, andthe addressesare chosenat random. The whitelisting process of Polkastarter platform has been recently updated and the process permits only the holders of POLS token to participate in an IDO.
4- Future development and associated projects. (Screenshots needed)
The future development of Polkastarter project is well outlined on their Whitepaper. The Polkastarter whitepaper shows the detailed technical roadmap of their future development which is in phase 1, phase 2(A), and phase (2B).
These phase are to be revealed in quarters as seen below
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Some associate projects to partner with Polkastarter platform includes;
•DIA
Polkastarter partnership with DIA is to be part of the plan for the decentralization of the DeFi and DeFi data products. DIA is an open-source oracle network and Polkastarter partnership with DIA, will help in the sourcing, verification and use of data from participants in Polkastarter ecosystem. The primary objective of this partnership is for DIA to be the principal provider of decentralized oracles for ERC-20 token prices, which will serve as an alert functions wheen high spillage is observed in the Polkastarter network.
•Orion Protocol
The integration of Polkastarter and Orion Protocol will help boost Polkastarter liquidity by using Orion Liquidity Boost, to upgrade DEX in Polkastarter with bottomless cross exchange liquidity that will create automated liquidity to all token exchanges and swap pools. With this partnership, Polkastarter guarantees its users consistent activities and liquidity provision to different ERC-20 token pools.
•Covalent
This association will create a more safe environment to bring about more transparency and ensure regulation of the platform against scams in the disguise of sale of tokens on the Polkastarter network. Considerong the fact that Polkastarter is a decentralized and permissionless platform that enables projects to raise and exchange funds in an cheap and fast process, in an environment compatible with ERC-20-based tokens.
•Shyft
Polkastarter association with Shyft Network will offer each group creators the option to activate a compulsory fully compatible know your customer (KYC) process. Shyft Network is a public protocol that permits encryption, attested and secure data transfers, and enables anyone to develop applications and infrastructure for global citizenship as they have a regulatory-compliant privacy that provides an end-to-end global whitelisting encryption for all groups.
•Moonbeam
Polkastarter association with Moonbeam association will build a framework fir fast and efficient transfer of the existing Ethereum code to the Polkadot ecosystem. This is achieved with the Polkastarter parachain solidiality feature which Moonbeam also possess and is well compatible with subtrates and Web3 environments on Polkadot ecosystem.
5- Carry out a technical analysis of the token of the selected platform, then through your validated exchange account make the purchase of the token (15 USD minimum). Screenshots and an explanation of the procedure are required.
I'll be using Moving average indicator and Relative strength indicator as my technical tools for the technical analysis of POLS token chart from coinmarket cap Tradingview platform
From the chart of POLS/USDT above with the RSI indicator, it shows POLS token is in the overbought region as it is on scale of 80, from a technical point of view this is not a good entry point to purchase POLS token as the price is on a high side. The RSI indicator shows that the POLS token is in its distribution phase and is very expensive.
Using Moving average indicator, I used 9MA(blue line) and 25MA(purple line) as a technical tool for analysis of POLS token. A golden cross is observed on the chart and the MA indicator indicates a bullish trend movement currently. The green candlestick movement is also and indication of the bullish trend. This is actually not a good entry point for purchase of POLS token.
Purchase of POLS token from my Binance account.
I login to my verified Binance account, click on Markets and click on spot option and search for POLS/USDT pair
Screenshot from Binance
I click on buy, then I place my order. I made a limit order of $17.101, considering the fact that POLS token price is high and in a bullish trend.
Screenshot from Binance
Limit Order details
Screenshot from Binance
Cc: @albert