PDEX coin protocol explained
Polkadex (PDEX) is a unique Defi project introducing a decentralised crypto exchange. It is developed using Substrate and AMM decentralised exchange models and the centralised order book mechanism. This DEX offers a non-custodial and peer-to-peer order book having a web3 foundation.
What makes the project distinctive is its native token, the PDEX coin. It is used for the network’s governance, and also you can stake it to earn profits. In this article, you can learn about what this altcoin is and how its protocol works.
What is a PDEX coin?
It is the native token of the Polkadex trading platform on the Polkadot blockchain. For the network’s governance, this ERC-20 token is used. It allows the members to participate in critical decisions. Also, it will enable participation in IDOs and helps in validation.
The PDEX coin price is around $1.75, with a total supply of 20 million coins. Since it is an inflationary token, its supply can fluctuate. However, there are only 1,963,860 tokens in circulation.
How does the PDEX coin protocol work?
It was developed to solve the problem of high transaction fees, scalability, and decentralisation. For this reason, its team developed a platform using a blend of different technologies.
Like Polkadot, it also works with the Proof-of-Stake (PoS) mechanism. But it used the technologies like Fluid Switch Protocol (FSP), Automated Market Maker, Substrate, and centralised order book model. These technologies ensure that it not only performs as a token but helps the DEX ecosystem too.
Because of this, they introduced a chain having a slim design that offered a throughput of 500K TPS. Also, it increased the liquidity and introduced feeless transactions on the platform.
PDEX coin staking
It allows you to take part in validation and provides incentives. If you hold the PDEX coins, you can stake them to make profits. The Nominated PoS mechanism selects validators for consensus. At the same time, coin holders can participate as nominators who can nominate 16 other validators. The tokens of both parties become collateral, and they can earn incentives on it.
Bottom line
PDEX coins are the natives of an innovative project introducing the idea of an efficient Defi DEX. It works on the PoS consensus mechanism and powers the entire ecosystem of Polkadex. It has several use cases like governance, validation, used as trading fees on the exchange, and earns you staking rewards.
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