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#PolkadotDapps Series: Exploring DEXs in the Polkadot Ecosystem
Recorded: Dec. 18, 2023 Duration: 1:09:48Space Recording
Full Transcription
Just wanted to text my microphone.
Is it okay for you?
Yes.
We hear you loud and clear.
Cool, cool, cool.
Thank you, guys.
Loud and clear.
We're just getting everyone, all the speakers up on the stage,
and we'll start shortly.
Sure.
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All right, we're just going to give it another few seconds while we let people filter in.
Stand by for another 10, 15, 20 seconds, please.
All right, everyone.
Hello and welcome.
This is the first Twitter xspace on Polkadot dApps.
If you weren't aware, there's a new dApps page on Polkadot.network.
We'll leave a link in the reply to this space if you want to go visit it directly.
Otherwise, go to Polkadot.network.
Go to the top of the website.
Tap on ecosystem.
And then from the drop down, tap on dApps and you can explore all of the dApps in the Polkadot ecosystem.
Today's space is on all things decentralized exchanges, DEXs.
And in the coming weeks, we'll have spaces on DeFi, gaming, social media, music, NFTs and more.
Before we get started with today's space on DEXs, we have a little favor to ask.
If you could go ahead and just retweet this space, leave a comment, send it to a friend.
Let's get a few more listeners in here.
Any sort of engagement interaction helps with the algorithm, helps it spread it to your followers.
So if we could just ask you to do that, that'd be great.
Without further ado, let's introduce today's speakers.
We have Ben from HydroDX, Aziz from Stellaswap, Pablo from Pokedex, William from Pokeswap, Tyler from Arthswap, Jay from Beamswap, Victory from Zenleaks, and Nicholas.
And Nicholas, who is the DeFi lead at Parity and co-founder of Velocity Labs.
So I thought we could start off just by going around the table, going to each speaker and getting a quick introduction of your DEXs and some of the recent accomplishments or things that you're proud of.
So why don't we start off with Ben from Hydro first.
Hey, guys. Thanks for having me on here today.
So I'll give you a quick TLDR of Hydro, what we're doing, what's coming next and that sort of thing.
So HydroDX is a next-gen decentralized exchange or DEXs, which we're here to talk about today, designed to facilitate super capitally efficient swaps between assets.
So our key product is the Omnipool, which puts all assets into a single liquidity pool, which helps to further unlock efficiencies by allowing single-sided liquidity provisioning.
So we launched on the 6th of January 2023, the Omnipool, and after launching the so-called Lego brick first of Omnipool, we spent the year adding feature after feature to constantly improve efficiency for our users.
As it stands currently, we have four AMMs on Hydro.
That's the Omnipool, all assets in one pool, isolated pools, XYK, Uniswap, stable swap pools, think Curve, and liquidity bootstrapping pools, or LBPs.
So each one of these is designed for a different use case.
We abstract confusion away for the end user with our multi-AMM trade router, so users can select which assets they want to swap and the rest is taken care of for them.
We've also got an OTC trader, allowing for multi-party trustless peer-to-peer transactions.
We added a DCA feature in order to make trading even simpler by allowing users to automate regular trades or break down larger trades into smaller, more frequent chunks.
This further improves efficiency, as you think, as even lower levels of liquidity can still achieve low slippage trades.
One of the killer features of Hydro is that it's a DAO of HDX holders who control protocol and liquidity totaling over 20 million USD equivalent at the moment.
The majority of this is provided as liquidity to the Omnipool, meaning that even in times of volatility, Omnipool always has deep liquidity of last resort.
On top of this, several protocols within the ecosystem have trustlessly provided their own liquidity over XEM through their own governance executed on-chain.
It's even allowed one project to adjust their tokenomics to allow lower emissions for liquidity mining in favor of more important growth tools.
EVM and referral fees are probably the next features to go live.
EVM will allow, for example, Metamask users to just use Hydro without realizing it's Polkadot in the back, and referral fees allowing protocols to generate fees from trading activities of their supporters.
2024 is set to start as 2023 has gone on, with an updated roadmap demonstrating how we can further grow now that we've established, obviously, the base layer with the features we've delivered thus far.
So much, much more to come there.
And we're here to grow Polkadot and grow with Polkadot.
We welcome any users to come and give us feedback on our products and how we can improve that to take things to the next level.
I will leave it at that.
Great. Thanks, Ben.
And for all the listeners out there, we're going to have some Q&A at the end.
If you have a question, you can leave it as a reply.
We'll kind of have a bit more of a free-flowing session in the middle of the space.
But first, let's get through all the intros.
So with that, let's go to Aziz next from Stellaswap.
Hey, thanks.
Great to be here.
Thanks, everyone, for inviting me and for listening to this AMA.
So I'm Aziz.
I'm one of the co-founders and represent for Stellaswap.
We're actually an EVM-based hybrid AMM DEX, which is built on Moonbeam, secured by Polkadot.
We aim to be like the shelling point of Polkadot in trade.
So what this means is that we have three kinds of AMM under the hood, right?
V2 standard AMM at uni, stable AMM, as well as our recently launched concentrated liquidity AMM,
which was launched in first quarter this year, right?
So all of those AMM is powered by our universal router, which actually finds the lowest slippage routes across all these AMMs, right?
So what this allows us to do, right, this design architecture is facilitate like the most optimal experience for users, right?
Two kinds of users, right?
Number one is traders because they will get access to the best prices with the lowest total fees, right?
By fees, I mean like slippage and baseline trade fee, right?
So our V3, for example, has extreme capital efficiency that not only facilitates like low slippage trading,
but also a dynamic pricing model with a base rate of like 0.25%, which is lower than most taxes, right?
And secondly, for liquidity providers or stakers, you know, that same level of capital efficiency brings about greater capital utilization,
which means for you, higher APRs for supplying or deploying their capital on our farms, right?
Where you can observe it in our current set of farms where the majority of the yields are organically generated from trading activity
instead of like token emissions or rewards, right?
And a lot more flexibility in managing your risk return trade-off, right?
So right now, we're really excited to share that we have the most comprehensive support for native Pocodot assets,
supporting like 10 parachain assets and over like 40 farm variations for users to choose from,
and beyond the core proposition as a trading venue, right?
One of our core missions is like to really simplify the DeFi user experience so that, you know, it's easy for anyone to be onboarded, right?
Hassle-free DeFi, that's what we're talking about, right?
And for that, for making life easier for users, there's a set of cool features that we've launched throughout this past year, right?
Number one, a fiat on and off of Transact, a native bridge on our front end, which is powered by Wormhole,
and one of our most popular sort of like feature would be the crossing swaps, right?
That really allows you to convert tokens from other networks onto Moonbeam in just one click, right?
That has been like the most preferred way to transfer value across so far.
So, as a native XEM transfer feature within our app so that you can transfer native tokens effortlessly on Polkadot,
as well as a swap for gas feature, right, that allows any first-time user to perform gasless traits without Glimmer, the native token.
So, all these features include really simplify the onboarding of new users onto Moonbeam and the greater Polkadot ecosystem.
We're really glad and excited to work with protocols on Moonbeam, as well as Polkadot, to foster greater composability in DeFi.
And not only that, I mean, we're proud to be the only DAX across Polkadot that has surpassed a billion dollars' worth of trading volume.
And we're really excited to grow with the community and grow with the ecosystem to generate, to spearhead greater user traction and DeFi activity here.
Great. Thank you for that, Aziz.
Next, we'll hop over to Pablo from Polkadot.
Pablo.
Hey, hey, hey, everyone.
Nice to be here today.
So, I think we have taken kind of a radically different approach, especially when compared to AMMs.
And we built an order book DEX.
So, what that means is it's designed to work like a centralized exchange while preserving, you know, the self-custody and sovereignty of a DEX.
So, yeah, we built Polkadot's order book, and that combines the best of centralized and decentralized exchanges under one roof, while also at the same time solving for some of their inefficiencies.
So, on the centralized exchange side, we're combining, you know, the higher functionality of sexes, you know, first with limited market orders and more kind of trading functionality down the line.
So, we're combining the interoperability of sexes, so, you know, the ease in which they can support tokens from different networks and also the speed of sexes.
So, we're supporting high-frequency trading on order book and trading bot integrations.
I don't know if you guys saw our latest announcement, which we covered in last week's Polkadot roundup, which was about our integration with Hummingbot, where traders can automate trading on Polkadot's order book.
And then, yeah, so, basically combining kind of the price efficiency that comes with the order book model that essentially lets people do more with less or, you know, you don't need as high of a TBL to achieve the same level of price efficiency.
And, yeah, we're getting rid of some of the inefficiencies of centralized exchanges, which, I mean, the main one is just a central party holding your money, which, first of all, defeats the purpose of crypto in the first place.
It's also why we're all here, you know, talking about DEXs.
And, yeah, I mean, we're tired of seeing people at the risk of operator malpractice or even at the risk of security threats to a central kind of honeypot, which is the case of centralized exchanges.
I mean, we've all seen how that can end up time and time again.
And it seems like crypto kind of goes through these cycles of, you know, forgetting that and being painfully reminded time and time again.
So that's on the sex side what we've taken.
And then on the DEX side, we're basically preserving, yeah, the advantages that make DEXs revolutionary in the first place.
So as a user on Pokedex order book, you're always in control of your own money, which kind of, I mean, it doesn't defeat the purpose of crypto.
And, yeah, the community or the traders are making the decisions on the exchange.
So they're deciding, you know, what markets go up and things like that.
But DEXs are also inefficient in some ways.
They can be slow depending.
I mean, they can be throttled or throttled the chain that they run on.
They can be expensive, especially depending on the chain that they run on.
And they're usually siloed and they have limited functionality.
So sometimes they're just limited to swaps, which means they're not necessarily designed for trading.
So, yeah, we've taken all those things and we've made an order book DEX that has the speed, the functionality, the interoperability, the trading bot integrations of a sex.
But, you know, preserves the main advantages of a DEX.
And, yeah, as far as how it's going, we've been adding pairs in recent months.
So now we're at five pairs.
So we have DOT, PDEX, A-Star, IBDC, and FA, all paired with USDT from AssetHub.
And, yeah, the trading volume, 24-hour trading volume over the last few days has been over 130K across the five trading pairs, which is, you know, baby steps.
But it's showing, you know, the traction that we wanted to see.
And that's only with around 150K in TVL.
So it's nice to see that price efficiency that I was talking about.
And, yeah, I mean, what's coming next?
We have a liquidity mining program in 2024, which should encourage kind of market makers to come on or incentivize them to come on to Pokedex Orderbook.
And we also have a connection with Ethereum via our interoperability layer coming in 2024, which will also allow people to use Pokedex Orderbook with MetaMask without really needing, like, Pokedex.js-like apps, you know, let's say.
So, yeah, we're excited for that.
Great. Thanks very much, Pablo.
Before we go over to William of Pokedex Swap, just a reminder, if you have a question for our speakers, leave it in the comments, the replies.
Would appreciate if you could retweet, comment, send this out to your friends.
Let's get some more listeners into this space.
And go ahead and follow all of the speakers today.
Stay up to date with their DEXs, their projects.
Be the first to hear about news.
And with that, we'll go over to William of Pokedex Swap.
Yes.
Hi, everyone.
Happy to be here.
Thanks to Polkadot for hosting this great space.
So, yeah, I'll talk a bit about Pokedex Swap.
It is a non-custodial cross-chain AMM DEX protocol for swapping tokens.
You can currently swap tokens on the Sora network as well as Kusama tokens at the moment.
So, KSM, we're opening HRMP channels currently with Kusama PowerChains.
So, please, by all means, you can drop us a line to open an HRMP channel with you to get your token listed.
Pokedex Swap also has a synthetic asset platform where the community can add synthetic assets that they would like to see traded.
There is NFT features in Pokedex Swap as well.
NFT that are fractionalized.
So, you can mint them and then add them to liquidity pools.
We have over 200 tokens trading at the moment and counting.
It's also very much focused on interoperability.
So, we have a bridge to Ethereum at the moment.
We have a substrate bridge currently connected to Kusama.
And, yeah, we're working on making decentralized finance accessible to all users of the ecosystem.
So, we're really active on getting different tokens and assets traded on it.
So, yeah, I mean, there are a lot of PowerChain teams, for example, that would have their tokens in centralized exchanges or only limited to, let's say, crowd loans.
So, that's also part of who are looking to onboard onto the DEX.
So, ongoing work, their bridges, Substrate Bridge, was a very interesting release that we had this year.
It was a pretty long time coming.
Yeah, we're working a lot on whitelisting some tokens.
And there's a lot of information that we provide to the users when they're trading on Pokedex Swap.
So, there are statistics pages with all sorts of useful information that they can find on the network, on the different tokens.
Liquidity pairs as well.
It's an AMM DEX, so people are welcome and encouraged to add their liquidity pairs and partake in making the experience as decentralized as possible.
We also have single-sided staking, this integration with mobile wallet apps, so you can also trade on the go using Fearless Wallet and the Sora Mobile Wallet.
And, yeah, we have the Sora card feature in the works so that you have a European IBAN number associated with your crypto assets.
It's still ongoing.
There's a lot of different hurdles coming from our Tradify partners.
But, yeah, there's plenty of stuff that you can do on Pokedex Swap, of course, in a decentralized way, self-custodial.
On the horizon, we have an order book coming, too.
So, it's basically just a one-stop shop for you to do everything related with decentralized finance within the Sora ecosystem, Sora network, and, yeah, as a bigger part or interconnected with the Polkadot ecosystem and beyond.
And we've got more bridges coming up, so there is work ongoing for multi-EVM bridge, so not only linking to Ethereum, but also to other major EVM-based networks.
And, yeah, that's just the tip of the iceberg of everything we're working on.
Great. Thank you, William.
Awesome. Next, we'll go to ArthSwap and to Tyler.
We cannot hear you, Tyler.
Can you – you might be on mute.
Okay, well, while we're getting the mic figured out for Tyler, let's jump over to Jay from BeamSwap, and we'll come back to Tyler.
Hey, good morning, good morning.
Mic check, mic check. Thumbs up if you guys can hear me.
Yeah, we hear you. We hear you.
Awesome, thanks.
Never know with X.
Well, anyways, my name is Jay.
I work over at BeamSwap.
We are a community-focused X on the Moonbeam network, and our goal is, you know, we're looking to connect users into the Polkadot universe with Moonbeam's capabilities.
We have a stable AMM, a traditional AMM, and we also have V3-concentrated liquidity.
We are one of the top-held tokens on the Moonbeam network.
So, what we're trying to do is we're trying to enhance the user experience and really be a one-stop shop and really make it easier for users, creating a better user experience on DEXs for users.
One of the things that we'll do is this year we launched our V3-concentrated liquidity, which allows for low-slipage trades, capital efficiency, and also creates better trading fees for users on our DEXs.
But in addition to that, we want to make sure that, you know, if you're coming from different blockchains and stuff, you can easily opt into the Polkadot ecosystem with cross-chain swaps powered by Squid.
So, this allows users to seamlessly opt into the Polkadot ecosystem, whether you're on, like, Arbitrum, BNB, or some of the other major blockchains that easily opt into the Moonbeam network.
We also have – we also utilize Brindex Aggregator, which, you know, is helping ensure that users are getting some of the better prices within the network.
And not only that, we are also the first perpetual DEX in the ecosystem with our platform, BMEX, which today we actually just crossed over $30 million in trading volume since we launched in July.
So, we're really excited about that.
But one of the great things about BMEX is it allows users to participate in future trading and opens up the gate for a new type of – new type of user in the ecosystem.
So, we're hoping to see more traction with that as we continue to – as we continue to go into 2024.
But users can provide liquidity and unlock earnings with our BLP token, and they can perform leverage trades up to 50X, as well as swap assets with minimal price impact.
And, yeah, that's all I've got, keeping it short and sweet, as we move on to the next guest.
Thank you very much.
And let's go back to Tyler and see if we can hear him now.
Tyler, are you there?
Yep.
Can you hear me now?
Yes.
Loud and clear.
Go ahead.
Yeah.
Okay.
So, hello, everyone.
Thank you for inviting me to today's AMA.
We are ASOP, the leading DEX on S-Network, and I think one of our outstanding points is the tradability.
I mean, we have the largest TVL, I mean, liquidity in the whole Polkadot X system now, and the deep liquidity enables users to, you know, swap any tokens with lower sleepage, and that is the most important thing for DEX users, I think.
And today, our TVL is, was over $25 million, you know, which is mainly due to today's assets price surge by listing on Upbit, a major Korean exchange.
And, yeah, you know, we were also surprised as well.
But the average TVL over the past month is around $18 million to $20 million, and I guess is the highest number in the Polkadot X system.
And regarding the trading volume, it's also due to asset supply surge today is likely to exceed $10 million per day, but it usually ranges from around $500,000 to $1 million per day.
And one of our unique features is the fee staking function of our native token and ASOP token.
So, a portion of our transaction fees is returned to ALSW, our ASOP token stakers.
So, as trading volume increases, so does APL for staking higher and higher.
And in addition to that, we currently operate AM, AM, V2, and V3 DEXs, you know, and plan to release XVM and XCM DEX in the future.
This will integrate the liquidity of EVM, WASM, and all parachains in the future.
All right, so, in a nutshell, our key metric is very simple, the tradability.
In other words, our future goal is to maintain and grow the largest TVL in the Polkadot X system.
So, yeah, that's a brief introduction now about SWAP.
Thank you for inviting me to today's AMA.
And thank you for joining.
Next up, we have, well, last but not least, we have Victory from Zenlink.
And then we'll, after that, move into a bit more of an open conversation, a more free-flowing conversation where we'll ask some questions.
But first, let's head over to Zenlink.
And, Victory, you have the mic.
Okay, cool.
Hello, guys.
It's great to be here.
So, Zenlink is the first native cross-chain DEX protocol on Polkadot, which aims to be the DEX-composable hub of Polkadot.
So, and then our mission is to unify fragment liquidity and enable thin-less cross-chain interoperability.
We've seen a user-friendly interface.
So, we are opening dots to the Polkadot and Web3 words with EZ.
So, we have several components for now.
I think the first one is the DEX protocol.
And the second one is the depth.
And the third one is a mega aggregator.
And the last one is the development kit.
So, I would like to introduce the newest product, Zenlink aggregator, Zenlink mega aggregator.
So, it aims to optimize trading across multiple chains and exchange by combining off-chain computing and on-chain smart contracts.
So, it means that you can always find the best price within the aggregator.
So, so far, Zenlink DEX protocol and the mega aggregator are integrated and deployed to a lot of pair chains, such as Biforst, Moonriver, Manta, Moonbeam, Asta, Pendulum, Interlight, and Sanada, Nang, Polkadot chains.
So, I will not mention that.
And so, another product is the Zenlink development kit.
So, it's designed to provide developers with a set of components and APIs to help them quickly build applications based on the Zenlink DEX protocol.
So, it's been used by pair chains like Interlight, Pendulum, Manta, and P-Network.
So, a little bit of history.
So, we started Zenlink following the official launch of Kusama pair chains.
So, it can be said that we are the first patch of Kusama ecosystem projects.
So, we welcome everyone to try our product and follow our Twitter account.
So, you can, I mean, I think you can always find the best surprise and the news on that.
So, okay.
All right.
Thank you, Victory.
So, I mean, as you can tell, there's a lot of really great and interesting stuff happening in the Polkadot ecosystem on all of the various DEXs we just heard from.
So, the best way to keep up with the latest announcements is to go ahead and follow all of the speakers, follow their projects, stay up to date, be the first to hear about news.
So, encourage all the listeners to do that now.
If you have a question for any of the speakers, leave it in the responses of the space.
We'll get to them at the end.
And for the next segment of the space, I'd like to invite Nicholas, who's currently the DeFi lead at Parity, and also the co-founder of Velocity Labs.
Maybe he'll touch on that a bit as well.
But we just want to have a bit more of an open platform, a free-flowing conversation here about just DEXs, DeFi in general.
So, with that, I'll hand it over to Nicholas.
Thanks, Evan.
Can you guys hear me okay?
There's a little bit of feedback on your mic, like a little buzzing noise.
Not sure if it's your headphones or if there's something in the background.
I do have headphones on.
Let me know if you can hear me now.
Is there a buzz?
It's still a little bit of a buzz.
Maybe try without the headphones.
Let's see.
Phone better?
Give me a second.
Okay.
We'll just give it a few seconds here to let Nicholas get his mic set up.
Is this better?
Apologies.
I would say that's better, actually.
So, yeah.
All right.
Let's go with this.
Yeah.
Cool.
Thanks.
Thanks, Evan.
Thanks, everyone.
Here with the space with the introduction.
I think we have a packed panel over here and a mixed bag in terms of different people building
all in Polkadot, but different layers of the stack.
So, in terms of me, as Evan mentioned, I'm currently DeFi lead at Parity Technologies.
So, I was taking care of the growth part of DeFi, talking with different teams outside
of the Polkadot ecosystem and trying to bring them into building in with Substrate or building
on top of any of the existing parachains.
It's also kind of taking care of the infrastructure needed for DeFi to actually take off and poke
with that.
And then, through the decentralization process of Parity Technologies, I've also co-founded
Velocity Labs with some of the renowned parachain founders in the space.
And our idea with Velocity is to build market infrastructure and tooling to enable users, developers,
and liquidity to seamlessly enter the ecosystem and leverage all the benefits that Polkadot
has to offer for DEXs in this panel to actually be able to take off.
So, to kick us off, I want to leverage the fact that we have different types of DEXs in
in the panel, and I wanted to learn what the priorities are going to be for 2024.
In the DEX space, we've obviously seen Uniswap kind of leading the pack with different innovations,
first, obviously, with their V2, then concentrated liquidity, and now with Hooks.
Some of the people here in the space have kind of closely followed that path, and others
have taken a completely different roadmap, aiming to offer completely different things.
So, I wanted to get everyone's opinion.
Let's get maybe, I'll pick someone from the stage just to avoid the minute of silence,
but maybe Ben from Hydra can give us your thoughts on kind of what are the priorities that
you see for 2024 building on Hydra, and then we can go over for Armas East, and then we
can take it from there.
Okay, dokey.
Priorities for building on Hydra.
So, one of our key points will be launching early in the new year will be an EVM layer
on top of Hydra.
The main reason for doing this is to allow people who use, for example, Metamask wallet
to be able to connect to and interact with Hydra DX without even realizing that they're
on Polkadot.
So, one of the big hurdles that we've had in this ecosystem is people having to download
and install a new wallet, do something different to what they're used to, not being able to
get their liquidity to our ecosystem due to lack of available bridges.
So, we're really hopeful of using this EVM layer to sort of abstract that away and encourage
additional users into the space.
So, having users from outside of our bubble, having liquidity, more importantly, from outside
of our bubble, getting those in one way or another are sort of like the key focus for us at the
start of the new year.
Awesome.
Thank you, Ben.
That's super exciting.
Let's go on with Stella.
Thanks, Nick.
So, one of our main priorities, right, would be an evolution of the V3 into a modular stack.
We're working with Algebra that powers concentrated liquidity.
They're the most popular concentrated liquidity solution apart from V3, Unisol V3 right now.
And one of the things which was what Algebra has sort of launched mid of this year, right,
a modular architecture that allows us to not only, you know, start with the base dynamic
fee, you know, one of the things about dynamic fees, right, a singular pool is that it eliminates
what you call liquidity fragmentation.
You know, in Uniswap, there's three pools of the same pair with varying levels of fees.
But with our dynamic fee model, you could have a singular pool and the fees is dynamic
according to various factors.
So, that is something that has already been implemented.
But down the line in 2024, moving on to sort of the evolution of the V3 concentrated liquidity,
right, you can see much more component-based stack that we can integrate, right, like limit
orders, built-in farming, you know, all that is really going to make the stack much more
secure and much more customizable with n number of components that we can plug and play for any
use case, right.
And so, that's something, right, an evolution of V3, of V3.
And the second thing we really sort of like, I mean, right now we're six months into development,
right, is off-chain rewarder, which is basically, in simple terms, allowing for the front-end users,
right, to manage their V3 positions passively.
So, basically, automated V3 staking is going to come very, very soon.
That will really simplify V3 staking because right now V3 staking is very manual and you
have to ensure that you're not out of range, right, for you to keep on earning.
So, that, us building on the off-chain reward is very important for us to reduce security
vectors as well as ensure a unified economic model where we can control the rewards from a
single, from our end.
So, that will allow scalability of partnering with any active liquidity manager, such as
Gamma, Rackis, DeFi Edge.
So, that is something which we've built on for quite a long time and really excited to launch
it very soon.
Awesome.
Thank you, Cease.
So, there, I like that we got kind of a different perspective from two different DEXs, one that
it's kind of built more as an app chain, one that it's building on top of a Moonbeam as
an application.
So, with that, I also wanted to get people's thoughts on the benefits and disadvantages, or
maybe, let's call them, trade-offs of the different ways that Polkadot enables a builder
to build their application.
So, I'd love to hear from Polkadex, which obviously took the app chain route, they're
building their full stack, and then maybe we can get someone from ArtSwap and Beanswap
for us to give us the benefits of building in the application layer.
Let's start with you, Pablo.
Polkadex?
Sorry, I was on mute.
I was talking, but I was on mute.
Classic.
All right.
Yeah, I wouldn't say I'm kind of the most qualified person to go in depth on, you know,
the technical level of our product, like our architecture.
I mean, that is a better, you know, Gotham.
It can be high level.
No, no, no.
Yes, yes.
I'll get to it.
Gotham, our CEO is better.
So, if you need to chase them down for more questions about this, you can on Twitter.
But basically, yes, we took the app chain route.
We needed, like, basically a lot of the things that we wanted to do were only possible because
of Polkadot and because of Substrate and even there, you know, we've kind of faced some friction
or obstacles.
You know, we had to kind of go with this hybrid architecture where we have the Polkadex network,
which is a solo chain on Substrate.
And then on the side, we also have the Polkadex parachain, which basically enables liquidity
to come in from via XCM to the Polkadex solo chain.
But yeah, on kind of the more technical side, we're leveraging off-chain workers and the gossip
infrastructure that was made for Polkadot, which is in Substrate.
And yeah, these off-chain workers, they can run for long periods of time without depending
on block time.
So that allows us, or Polkadex order book, it allows us to process trades from order book
and achieve a state change of users' balances with signatures from all the validators on
the Polkadex network.
That's a community of, like, 200 validators or more.
And these are how, like, the validators are doing the trade settlements.
So yeah, I mean, basically no other ecosystem other than Polkadot and no other framework other
than Substrate would have allowed us to create what we've created today, which is a high-frequency
trading DEX-enabled, I mean, high-frequency trading-enabled DEX.
And yeah, we wouldn't have been able to do that without sacrificing on UX and centralization risk
on other frameworks or other ecosystems, let's say.
Awesome, Pablo.
Yeah, I really love Polkadex's case to showcase Substrate and the power of optimizing whatever
you need on the tech stack.
So it's super good to hear how you guys did it.
And then on the opposite side of the spectrum, of course, you can also build in the application
layer on top of some of the smart contract chains like Astar or Moonbeam or others that
are obviously with other benefits like distribution of liquidity, distribution of users, quicker
go-to-market, et cetera, et cetera.
So I'd love to hear maybe from Artswap, which is currently leveraging Astar's parachain, to
see what the trade-offs are of building on top of a smart contract chain.
Yeah, our top priority in 2024 is the implementation of XGM and XVM in our DEX.
We think that it's very important to, you know, resolve the fragmentation of liquidity on
Prokadex system.
And we will do that by two ways, XGM and XVM.
So by XGM, users will be able to handle assets between the blockchain transfer three.
So we will provide unified liquidity throughout the entire Prokadex system and then breaking
down the values, you know, between the blockchain.
And also with XVM, XVM means cross-virtual machine, and this means, you know, a mix of EVM
and VASM.
So we are set to launch the DEX to the blockchain XVM to seamlessly bleach EVM and VASM.
So this will allow all users to handle assets easily without worrying about the boundaries
between EVM and VASM.
It means that the, you know, the differences between MetaMask and Polkadot.js or, and something
like that.
And in addition to that, we think, you know, the interoperability on Polkadot X system is
also very important in 2024.
And I think, in my opinion, interoperability is not just about handling assets across different
chains through XGM, but also includes collaborations between applications on different platchains
and, yeah, to provide higher user value.
For example, we are now collaborating with Oak Network, one of the great parachains, you
know, and implementing some functionalities for better user experience.
So we will try to, you know, make more collaboration with other platchains and other applications
on other platchains.
So, yeah, this is, you know, our priority in 2024.
Awesome.
Thank you very much.
Let's give the chance for BeamSwap, which they're also building a perpetual exchange, as
they mentioned.
What have been the benefits and trade-offs of building on top of Moonbeam?
Well, I think right away with, like, some of the benefits that you get for, you know, building
on Moonbeam, I mean, you get the ease of Ethereum plus Polkadot's native, you know, cross-chain
functionality.
So, in terms of deployment, and deployment is for developers, it creates a plot, you know,
it's easy for people to opt in or users or developers with already existing infrastructure
to easily deploy here.
But in addition to that, it's also an ease of use for users to come into the Polkadot ecosystem,
coming through Moonbeam as the gateway into Polkadot.
So, that's one of the main reasons why we chose to deploy here.
And then, also, I mean, some of the things that, some of the amazing things that we have
with XCM going on, allows for us to easily just communicate with the other projects building
on Substrate.
So, it's been a really amazing experience and something that we're looking to start collaborating
with a lot more of the projects here in the ecosystem and also list them on our decks.
Awesome.
Thank you very much for that.
So, I wanted to get the conversation a little bit more real, right?
I wanted to avoid a space where we're all chilling our bags.
And if we assume that we're building the future of finance here on top of Polkadot's infrastructure,
that obviously comes with blockers.
And we're kind of building the plane as we fly it, right?
So, now that we're talking about DEXs, and DEXs, of course, live and die by their liquidity,
I wanted to get people's thoughts on what can Polkadot do better to increase the liquidity
into the ecosystem and obviously flow into some of your DEXs.
So, for this, let's start off with Sendlink.
Okay, so, I think the best way, I mean, we can take this question from different sites.
So, the first thing is that from the project site, so it means that we build a DEX project
on Polkadot, so we would like to ask Polkadot to hold more activities, to hold more sub-submitters,
and then to attract more users to use Polkadot, to use Polkadot parachains,
so that we can think we can get some electricity from the outside world.
So, the second one is from the user side.
So, users always wanted to have a friendly user interface,
and to have a seamless trading experience, so that it asks ourselves to build more convenient tools for them.
So, for example, we built a Magda aggregator.
So, we wanted to let people to have a happy trading experience on Polkadot,
so that we don't mind that a user will go to trade the tokens on another DEXs.
So, we have this aggregator built for everyone.
So, I think, in general, we must try our best to make our product perfect,
and then I think Polkadot would have that too.
Awesome. Appreciate that.
Now, Focoswap.
Yeah, I think I...
Yes, I think I agree with Zenlink about making the user interface as attractive as possible.
You know, we're having a discussion earlier that people are really used to using a certain platform
or a certain blockchain, and then, you know, when it comes to asking them to use something different,
then it's a bit of a problem to have to change wallets or have to change signers.
And definitely, getting on board into Polkadot or the substrate spaces takes a little bit getting used to,
especially if you're a first-time user of Polkadot.js.
So, yeah, through Polkadot.js, we are looking to offer users a very seamless and easy experience
where they can do even the most advanced features in a very simple and straightforward way.
Together with this, there's also, you know, providing as much information as possible to the users ahead of their trade
or with any function that they want to do.
We're constantly working on improving the user interface to provide as much details as possible
to kind of make the experience less mystical and more practical, but still keeping it user-friendly.
Awesome. So, I've heard a lot of people focusing on the UX component to better increase liquidity.
I wanted to open this question up to the rest of the speakers. I think we covered them all.
Anyone else wants to add something? Asis, go ahead.
Yeah, sure. I think it's a very important question, right?
Because that would enable us to understand what are the blockers and what we can do collaboratively to address that.
So, there's three things on my mind, which has been sort of like on our minds collectively for the past year, or even two, right?
Number one is payment rails.
So, I think it's very important for Polkadot to have a plethora of payment rails to support native asset flow.
So, for example, central exchange support to Polkadot asset transfers, right?
So, that's very important because centralized exchanges, no matter what, is the biggest hub for liquidity right now.
So, if there is established payment rails between centralized exchanges like Binance or Coinbase to Polkadot, right?
It's going to be much easier for users to withdraw their funds or deposit their funds across Polkadot, right?
And that's number one.
Number two is sort of like opening up infrastructure components, you know, like bridges connecting to other L1s, you know,
and which we are currently, as a community, doing some projects that are focused, like Snowfog, right?
Building a trustless bridge between Polkadot and Ethereum.
So, once infrastructure components like this are completed, only then can we sort of like see capital intros much easier.
Number three, I think it's also important is unified comms, right?
Like, across Polkadot and, for example, something like this, like what Polkadot is organizing, you know,
across this entire umbrella of ecosystem showcase, right?
It's very important because a single app or app, right, cannot make as much of a splash towards the outside of Polkadot
unless it's spearheaded by a Polkadot under unified sort of like brand or a marketing campaign.
So, that would really help in sort of like accentuating all the cool stuff that we have here.
Yeah, by influence.
Awesome.
So, I can summarize there and I completely agree.
We do need better infrastructure to enable the flow of native assets directly into your applications or parachains.
That's definitely a big focus of Polkadot in 2024.
Yes, Ben?
Yeah, just building on the remarks from others, I think it's important for us to push and celebrate winners in the ecosystem.
Wallets in particular.
We have some fantastic wallets in this ecosystem now with Nova Wallet, Talisman, SubWallet.
We need to be celebrating these guys and pushing those towards users so that when we are getting people curious on Polkadot,
they're not immediately getting put off by some of the old guard.
With regards to products, if you're enjoying using a DAP or a product or a protocol, then celebrate that.
Get behind them.
Support them.
We need to create winners in the ecosystem for people outside of the space to get FOMO and come and join in.
That's absolutely critical.
And just building fun stuff, right?
Building engaging things.
And then when people are giving you feedback, making sure you're acting on it so they can see an iterative process
and see that things are always moving forwards.
Love that.
Thank you, Ben.
Let's go over to Pablo and then Arto.
Yeah, thank you.
I just wanted to, you mentioned, you know, making it easier for people to come into our DAPs.
And I think that's important.
But I also think it's important for the DAPs themselves to make it easier for people to get into the Polkadot ecosystem as a whole.
So, you know, I think trying to bring in or kind of make new ways to get into Polkadot, I mean, that's what we're working on with Thea.
And I just think that, you know, some of the DAPs are kind of solving, you know, these liquidity, trying to solve these liquidity problems on their own because they want liquidity.
And so, in a way, that will solve it for everybody else because through those rails, we can get to Polkadot as a whole.
I mean, right now, I think another issue is stable coins.
Because, like, right now, you know, to get USDT on AssetHub, I mean, what, I go to Binance and I withdraw my USDT as AssetHub USDT.
Like, there has to be an easier way where we're not sacrificing, yeah, custody over our own funds, you know, going through a centralized exchange just to get to having USDT on Polkadot, for example.
That's just one example.
And I think also, like, with the connection to Ethereum, like, me personally, I'm excited about, you know, Thea adding support for networks outside of the Polkadot ecosystem just because of that, like, symbolic, like, what that will mean symbolically.
Like, a dot ETH pair on Pokedex on a decentralized order book is kind of the embodiment of a trustless way into the Polkadot ecosystem.
If you can send ETH, trade it on an order book, you know, without ever having to go through these centralized providers and then get into, trade it for dot, for example.
So, that's a much better way, in my opinion, than, yeah, going to, you know, putting your USDT in Binance and then taking it out as AssetHub USDT, for example, yeah.
Absolutely. Couldn't agree more.
And here, I kind of put a shameless plug-in in Velocity Labs.
We want to really focus on making the transfer of tokens blur the lines between parachains and ultimately end up with a way better UX than what we have right now.
Polkadot's architecture, like, provides really a lot of flexibility for builders.
It obviously primes itself in great interoperability, but that also comes with challenges in the UX level, and we have to do our best to abstract away the complexities of XEM, abstract away the complexities of a user having to deal with different parachains to execute one function.
And there's a lot of things to build in that regard.
So, Velocity Labs will be definitely making its stand in the ecosystem, making it easier for you guys to access users and liquidity.
So, lastly, let's go over to ArtSwap, and then after that, we can have some final remarks, and I'll pass it over to Evan.
Yeah, all right.
So, yeah, I completely agree with the opinions expressed so far, but since many have been, you know, marketing-oriented, so let me touch a bit on the development side.
I believe it would be beneficial for our decks if the parity team could share their, you know, development roadmap more frequently and in more detail.
You know, because to further evolve DFI on Polkadot, it's crucial to keep up with the latest technology, like, you know, including latest ink language and XGM or something like that.
So, yeah, it's really beneficial for us, I think.
Absolutely.
Thank you very much.
I'll pass it over to Evan.
Thank you very much for listening in, and thank you for the panelists answering my questions.
I think it was very insightful to hear from different perspectives of the key builders in our ecosystem, specifically with regards to DEXs.
So, I hope to see you later in another space in the future.
Bye-bye.
Thanks very much, Nicholas.
Really appreciate your time, and thanks for hopping in.
I know you have to jump out soon, but thanks again for joining.
We'll move into closing statements.
So, if any of the speakers want to just say what they're looking forward to for the next year, just have any final thoughts, go ahead and raise your hand, and we'll get over to you.
So, in the meantime, I just wanted to reiterate that anything you hear today is not investment advice.
Always do your own research before trading, swapping, investing, et cetera.
And, you know, it's not easy for our speakers to get up here and to speak in front of a large crowd where everyone's in different time zones.
So, if you could just show your support, follow them, go to their project, check it out, and make sure that you're following Polkadot as well for the next Polkadot dApp space coming later this week on DeFi.
And with that, we'll move into the closing statements.
It looks like we have Aziz from StealthSwap.
Do you want to say something?
Yeah.
So, I just want to end up with saying that it's really been a blast building on Moonbeam and Polkadot for the last two years, right?
And we're glad to be in a top ecosystem filled with legends.
Our focus has always been to deliver simple and innovative solutions for our users and to grow the ecosystem.
And one of the things that I wanted to share that we're sort of like hoping to zone in, right, is extending cross-chain swaps, which right now has become the most popular form of value transfer across networks.
So, right now cross-chain swaps powered by Squid and Axiom and Moonbeam.
But given the popularity of it, what we're trying to do is to extend the capabilities of cross-chain swap that allows capital inflow across Polkadot parachains via the Axiom magic, right?
So, imagine using USDT on Ethereum and swapping it into A-star on A-star network all in a single click.
So, the extended capability is something that we really believe is going to help the ecosystem for greater capital inflows towards Polkadot as well as a solve for liquidity fragmentation.
So, yeah, and, you know, if you guys like what you hear, just follow us on Stellaswap Twitter and then join our Discord so that you can sort of like talk with the team in the community to understand what we're building and, you know, what we're trying to do.
Thanks, everyone.
Thank you, Aziz.
And you heard him.
Go follow Stellaswap to stay up to date with everything that they have planned for next year.
Let's go over to William, Polkaswap, and then over to BeamSwap to Jay, and then Zenlink, and then, oh, looks like everyone has a closing statement.
So, let's first go to William.
Yes, thank you very much.
I guess, first of all, thanks to you for hosting the space.
It's really great that Polkadot is showcasing the projects building on there.
I mean, there's a lot of very interesting stuff happening.
We have some interesting work going on as well with getting CBDCs, getting fiat into the ecosystem.
So, keep an eye out for more of that in the upcoming year.
As I mentioned, order books on Polkaswap are coming soon if you want to try that out.
You can have a look at test.pokeswap.io to have a heads up on all of the interesting features coming this year.
Thanks very much to all of my fellow panelists.
It was great being in a space with you guys.
And, yeah, stay fearless, everyone.
Cheers.
And thank you for joining, William.
Next, we'll go to Jay, BeamSwap.
Hey, I just wanted to say thank you guys for organizing this panel.
We're really excited to be a part of it.
And we're really excited.
We really had a blast talking with some of the amazing teams building Nexus on Polkadot.
So, thank you so much for having us.
But if anyone's looking to get involved or to check out what we're doing with BeamSwap or Perpetuals on BeamX, definitely give us a follow.
Also, just wanted to mention that if you're also interested, we're also doing a campaign with Airlift, which users can also do tasks and kind of get a feel and walk through of our platform and could potentially earn some prizes.
So, definitely be sure to check out that for our 12 Days of DeFi campaign.
But, yeah, thanks again, everyone.
Really appreciate it.
And let's continue pushing the frontier of Polkadot.
Everyone go follow BeamSwap to keep up to date with that 12 Days of DeFi.
And now we'll head over to Victory, Zenlink.
Okay.
Hello, guys.
So, I mean, some of the new features and advances in Polkadot are exciting.
So, I believe it can be better to address the repeatedly changing challenges of the future.
So, Zenlink hopes to continue building aggregator and cooperator with more taxes to provide a more seamless experience to the users.
So, if anyone wanted to have a cooperation with us, so you can just talk to our Samsung Messenger to our X account.
So, thank you.
Thank you, everyone.
Let's go to Tyler.
Yeah, thank you.
At last, in 2024, our goal at Alstva by, you know, utilizing XVM and XGM is to provide deeper liquidity across the entire Polkadot X system.
And I feel that the current liquidity in the market cap of native tokens of each parachain and application on parachains in Polkadot is still shallow.
So, conversely, this suggests, in my opinion, this suggests a significant untapped potential in Polkadot X system.
So, to achieve these developments, we need to collaborate with the, you know, parity teams and the ASA network team as well.
So, we are committed to, you know, developing these in the long term together, you know, with parity team and DEXs in this today's AMA.
So, yeah, thank you for listening to today's AMA, everyone.
Thanks for joining.
Appreciate your time.
Two more to go.
We have Polkadot X.
Hey, Evan.
Thanks.
Yeah, I think, I wish we could do this more often.
It was great to kind of hear from all the different DEXs.
I think diversity in the space is good and in DEX space on Polkadot in particular, you know, I think we talk about fragmentalization of liquidity, but I believe there's richness in each approach, as we kind of heard today.
And there's benefits to not centralizing liquidity in one, you know, given protocol.
So, I think it's more important that liquidity flows between parachains more easily, as that kind of allows traders to take advantage of the different features that make all of these DEXs great.
So, yeah, I think from our side, we're hashing out our documentation for governance.
So, a lot of our processes are moving to community governance and listing is a big part of that.
So, yeah, if you're interested in listing on Polkadot X order book, be sure to look out for that coming early this year.
And, yeah, we're connecting to Ethereum.
That should be exciting.
So, yeah, thanks for having us.
Follow us.
And, yeah, stay DEX-y, everyone.
Thanks very much, Pablo.
Before we go to our last speaker, last but not least, for all the listeners, go ahead and follow all of the speakers, follow their projects.
Start 2024 in the know.
So, don't be late on catching the news on what's going on in DEXs and the ecosystem.
So, follow all the speakers.
And with that, we'll go to Ben, Lowell McShiz, HydroDX.
Send it home.
Thanks very much for having us.
I'll keep it super rapid.
You've already said all the usual follow malarkey.
So, as I said in my opening remarks, in the new year, we're going to be sharing our updated roadmap for 2024.
We've just had a two-week team retreat in Bratislava where we've been ironing out what we think that should look like.
So, we're hoping to announce that as we celebrate our first year anniversary since launching the Omnipool.
So, remember two things.
One, bullish Hydro keep building.
And two, holler.
Thank you, Ben.
And thank you to all the listeners, all of the speakers.
Follow Polkadot for the next Polkadot DApps XSpace coming later this week on DeFi.
And with that, everyone, have a happy holidays.
If you have questions for the speakers, leave them in the comments.
They'll see them.
And we'll see you on the next Polkadot DApps XSpace.
