kunzhangs312/polkadex

An Orderbook-based Decentralized Exchange using the Substrate Blockchain Framework.

What is Polkadex? 🚀

Polkadex is a Open Source, Decentralized Exchange Platform made using Substrate Blockchain Framework that provides traders with the centralized user experience.

Why did we do this? 🎁

There are many decentralized exchanges/protocols available in the market for traders but they still prefer to use centralized solutions for their convenience and ease of use knowing very well that their funds are at risk. This is because decentralized solutions are still not user friendly to an average trader. Some of them also have no proper decentralization and also got hacked in the process. We cannot call an exchange decentralized if it can lose or freeze customer funds.

The problems faced by decentralized exchanges are:

• Inadequate UI/UX experience.
• Low liquidity
• Lack of advanced trading features, high-frequency trading, and bots.
• Lack of proper decentralization and interoperability.

To solve the above problems, our goal is to build a fully decentralized, peer-peer, cryptocurrency exchange for the Defi ecosystem in Substrate. The project envisages the creation of a fully decentralized platform for exchanging tokens in a peer-peer, trustless environment, that enables high-frequency trading, high-liquidity, and lightning-fast transaction speed for supporting Defi applications.

In order to address the first problem, we needed to enable features that attract users into the exchange which includes a fast, responsive UI and trading features. It is mainly to attract day traders and retail investors who prefer centralized exchanges due to convenience and speed of execution. The block time of 3s given by the Babe/Grandpa consensus algorithm allows transaction speeds of up to 400/s under test conditions which is more than sufficient to compete with any centralized solutions in the market today. Please check our analysis here. Since Substrate allows the modular implementation of the consensus algorithm, we think a platform like a Substrate will support the future growth of the exchange by changing consensus to accommodate more transactions per second as better ones emerge.

Secondly, the lack of liquidity is addressed by enabling,

1. High-frequency trading using feeless transactions.
2. APIs that enable trading/AMM bots to observe market changes and submit trades.
3. Advanced trading features like stop limit, market limit, Stop loss, Fill/Kill, Post only, TWAP, etc.

Thirdly, proper decentralization and Interoperability are achieved by having a parachain in Polkadot that brings in liquidity from other blockchains and also using ChainBridge protocol that connects directly to the Ethereum network. Hence, traders have two different mechanisms to bring in liquidity.

The value we provide to the Substrate community is,

1. They can build custom UI/UX to connect to our network and create their own custom exchange experience.
2. Traders can contribute their own custom trading algorithms by making use of market data provided by our full nodes.
3. They get a decentralized trading platform to trade Polkadot & Ethereum tokens.
4. This will be one of the first Decentralized exchanges to have High-Frequency Trading bot support using APIs directly from full nodes.

Run the node 💃

You need to have docker installed to run Polkadex. Use the command given below.

docker-compose up

Documentation 📚

For Tutorials, Documentation and API Reference please check this page

Contribute 😍

We would love to work with anyone who can contribute their work and improve this project. The details will be shared soon.

License 📜

Licensed Under Apache 2.0