Why cross-chain interoperability matters for DeFi

Sebastian Parker
Sebastian Parker
Last Updated on June 21, 2022

Modern DEXs are designed to maximize the advantages of both CEXs and DEXs, by using innovative technologies to facilitate more efficient transactions.

Many believe that the current CEX and DEX have limitations. This is why many advocate that a non-custodial platform, that can support assets across multiple networks, is necessary for widespread asset adoption. This would allow users to manage their funds at any time without sacrificing the freedom of a promising user interface.

Polkadex proposes this next exchange iteration, a decentralized peer to-peer order books-based cryptocurrency exchange. This project is designed to be the Web3 trading engine by combining the best of DEXs and CEXs, while eliminating the drawbacks.

Polkadex developed a solution that uses cutting-edge trusted execution technology to achieve this goal. Polkadex can take custody from exchange operators and create a non-custodial, faster exchange.

Polkadex is similar to centralized exchanges. However, it aims support assets across all chains in a decentralized way. Polkadex has been working on THEA, a decentralized liquidity link that will connect Ethereum and other chains to Polkadex. It also won a Polkadot parachain slot, which will enable it to connect to the larger Polkadot ecosystem.

Polkadex won auction 16 thanks to a community-driven campaign. It had a batch 3 record with 973,000 DOT that it loaned to its crowd loans. Polkadex, a Substrate-based Parachain, will support assets of the entire Polkadot ecosystem. Thanks to THEA, Polkadex can support assets from Ethereum first, and other popular networks later. The combination of interoperability layers and Polkadot will bring together Ethereum, Polkadot and other blockchains under one trading platform.

Polkadex leverages a combination of a layer-2 trusted execution ecosystem, a parachain and a cutting-edge, decentralized liquidity bridge to make it possible for users to exchange assets across different blockchains. However, they guarantee that their funds and smart contract keys are kept private. Additional offerings include PolkaIDO (a fully decentralized, on-chain IDO launchpad), which will seamlessly integrate with Polkadex Orderbook and Parachains.

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