presentation of Polkaswap DEX

2. Executive Summary
●AMM exchange using the XYK formula and an
intuitive UX for traders and liquidity providers
●Liquidity aggregation allows any DEX or other
liquidity sources to be used in filling orders
●Emphasis on the Polkadot parachain ecosystem,
with large amounts of 2-way pegs to other chains
available in the future
●API for easy integration with other DApps to make
Polkaswap an integral part of the global DeFi
infrastructure
●Built by a team with CBDC experience and two-
time W3F grant recipients

3. Trouble with DEXs
Decentralized exchanges
(DEXs) have unpredictable
and high gas fees and are
susceptible to network
congestion.

4. Trouble with DEXs
Current DEXs have liquidity
fragmented across too
many currency pairs.

5. Trouble with DEXs
Current DEXs create risk for
Liquidity Providers due to
impermanent loss and
high gas fees for balancing,
adding, and removing funds.

6. Creating a Better DEX
Polkaswap is a DEX that
serves as the liquidity
marketplace for the Polkadot
ecosystem and connects to
other blockchains
interoperably.

7. Creating a Better DEX
Polkaswap uses Polkadot
technology to overcome
many of the downsides of
current DEXs, enabling
fast swaps and predictably
low transaction fees.

8. Creating a Better DEX
Polkaswap’s Aggregate
Liquidity Technology (ALT)
allows for liquidity to be
unified across many
sources, even across chains.

9. Creating a Better DEX
Polkaswap also reduces
risks for liquidity providers
through an innovative
reward and liquidity
leveraging structure using
the $PSWAP and $XOR
tokens.

10. $PSWAP Token
Trading Fees: 0.3% per tx.
PSWAP tokens are deflationary by nature:
●Trading fees are used to buy back and burn PSWAP tokens
●New PSWAP tokens are minted to reward LPs. Reward
starts at 100% of burned trading fees and gradually goes
down to a flatline at 35% after 5 years
●10% of the daily burn is rewarded to the SORA Parliament
to fund future development
Example:
Transaction Fees: 10,000 PSWAP burned
Daily Reward Rate: 80%
Actual Reward: 8,000 PSWAP, minted and distributed
proportionally across all LPs.
*Exact values of the reward curve can change by governance

11. Token Distribution
●Maximum circulating supply: 10 Billion
PSWAP
●Inflation model: deflationary (supply
reduced daily)
Token Distribution
Farming and Airdrops: ~6% (at launch)
Team: 30% (at full launch)
TBC Collateral Incentives: 25% (first 6 years)
Liquidity Incentives: 35%
Trading Rebates: 4%
L I Q U I D I T Y
P R O V I S I O N
B O N U S E S
B U Y I N G X O R F R O M
T H E T O K E N
B O N D I N G C U R V E
M A R K E T
M A K I N G
R E B A T E S
T E A M
F A R M I N G
A N D A I R D R O P S
30%
6%
25%
35%
4%

12. Potential for Growth
●Polkaswap will help foster the growth of
Polkadot’s emerging DeFi ecosystem
●Polkaswap’s total market cap can potentially
surpass that of Polkadot itself, due to cross-chain
liquidity and bridges connecting other chains in
the future
●Potential to add orderbook DEX features, lending,
synthetics, and derivatives trading in the future

13. Go-to-Market
●Early LP incentives to bootstrap
liquidity
●Target early parachain projects
globally
●Integration with non-custodial
wallets (like Fearless Wallet)
●API offerings enable easy
integration with other dApps

14. Reducing Risk of Liquidity Provision
● XOR as a liquidity pool token
○ XOR is the native token of the SORA network,
with the supply managed by a token bonding
curve holding popular and liquid reserve
currencies; this makes XOR very liquid, while
maintaining price stability
● PSWAP rewards
○ LPs are rewarded in PSWAP tokens, instead of
more tokens in the pools they provide liquidity
to; this reduces correlated asset risk
● Liquidity leveraging
○ Polkaswap will allow LPs in XOR token bonding
curve reserve asset pools to mint liquid XOR
backed by their pool collateral
● Liquidity aggregation
○ Polkaswap aggregates liquidity across
exchanges, reducing sudden price slippage for
users and reduces impermanent loss for LPs
CORE OF THE SORA NETWORK
POLKADOT ECOSYSTEM COMPONENT
3RD PARTY SYSTEM
PRICE
ORACLES
Polkadot
Relay
Chain
Parachain
SORA Network
3RD
PARTY
BLOCK-
CHAIN
Polkaswap
DEX/CEX
LIQUIDITY
ARBITRAGE
HASHI
Bridge
e.g. Ethereum
Rebasing
EVM
Bridge

15. Special Offer
64% of the PSWAP token supply will be used to
incentivize participation from the start, with the
goal of bootstrapping liquidity and trading on
Polkaswap
● 25% for buying XOR from the token bonding
curve with ETH, DAI (future: KSM, DOT)
● 35% for providing liquidity on Polkaswap (2x
rewards for XOR-VAL, XOR-PSWAP liquidity)
● 4% rebate pool for market makers (>500
trades a month of at least 1 XOR)

16. Biggest Need
We need XOR buyers now from the token bonding
curve to kickstart the ecosystem.
● Initial XOR price ~$895/XOR
● Unfunded liabilities of $310 M for each of ETH
and DAI
2.5 Billion (25%) of PSWAP is reserved for giving to
buyers from the token bonding curve in ETH and
DAI (later: KSM and DOT)
25,000
30,000
35,000
10,000
0 5,000 10,000 15,000 20,000 25,000
20,000
15,000
PSWAP
Bonus
Iteration of Buying $10,000 Worth of XOR
Fewer Reserves,
Higher Rewards
More Reserves,
Lower Rewards
https://medium.com/polkaswap/pswap-rewards-part-2-the-sora-token-bonding-curve-70fab4c3f1b8

17. Team
●SORAMITSU will lead the development of Polkaswap
●The company is over 4 years old and has experience
developing on the Polkadot ecosystem since 2018
●SORAMITSU also built the first Central Bank Digital
Currency (CBDC) for the government of Cambodia
●The founder, Makoto Takemiya, is the creator of the Proof-
of-Importance algorithm used on NEM and is a seed
investor in Polkadot
●The team at SORAMITSU created the C++ implementations
for both Polkadot and Filecoin. They are also making the
FEARLESS mobile wallet for Kusama
Makoto Takemiya is a co-founder and the CEO of SORAMITSU. He has
authored more than 20 peer-reviewed scientific papers and actively
engages in research. He has a M.Sc. in Computer Science from the
California Polytechnic State University in San Luis Obispo and is
currently a Ph.D. student at the University of Tokyo. He has been in
crypto since Jan 2013, and was one of the original 5 developers of
NEM.
Dr. Aleš Zivkovic, CTO at SORAMITSU Labs and a part time instructor at
Penn State University. Responsible for contributions to Hyperledger
IROHA and other large-scale blockchain projects. Being in IT for more
than 20 years, Aleš has successfully cooperated on many challenging
IT projects, performed IT audits of mission-critical information
systems in different domains including insurance, financial
institutions, government, and IT companies.
Anton Khvorov, project lead at SORAMITSU. His responsibilities
include design, development and testing of products, guiding team
development efforts towards project delivery, and reporting to the
project stakeholders. Before joining SORAMITSU, Anton was a fullstack
developer and team lead at MTS (a major Russian telecom), managing
B2C high-load telco products.

18. R010814