PolkaBridge is a multichain and cross-chain decentralized platform that includes farming, AMM, launchpad, NFT, prediction, and many more. With PolkaBridge, users can swap tokens on the DOT platform with tokens on other chains and vice-versa. Participants can also earn by performing farming, lending, and liquidity more straightforwardly.
According to the whitepaper, Polkadot is a vital blockchain protocol that offers several benefits over Ethereum regarding processing speed and scalability. Furthermore, the token is also known as a decentralized all-in-one economic applications platform. The token's ecosystem is expected to have multichain & cross-chain automated market maker (AMM), fundraising platform (launchpad), NFT, and much more, which are created keeping Polkadot as the base. AMM is a tool utilized to supply liquidity (token pool) in decentralized finance (DeFi) without the intervention of a third party to set the price of an asset.
PolkaBride is devising a multichain automated market maker (AMM) tool, seeking to permit users to perform swaps or exchange assets on multiple blockchains, the flagship PolkaBridge development. After full deployment, the tool aims to be made to support Polygon, Ethereum, Polkadot, Solana, and Binance Smart Chain (BSC).
For example, individuals can swap Ether (ETH) with PolkaBridge (PBR) coin on the Ethereum blockchain. They can also exchange Binance Coin (BNB) with PolkaWar (PWAR) coin – all from the same platform.
After the takeoff of multichain AMM-type decentralized exchange, the following step is the growth of cross-swap functionality. Basically, it's the power to swap one digital asset on one blockchain with another asset present on the other without utilizing any third party. For example, participants can trade ETH on the Ethereum blockchain with Polkadot (DOT) on the Polkadot blockchain.
PolkaBridge employs Moonbeam's parachain solution for the entire Polkadot base, letting Ethereum-compatible smart contracts operate on Polkadot and permitting the protocol to support a connection. Smart contracts are just like regular contracts; however, instead of being drafted on paper, these contracts run in the form of protocols on the blockchain. In practice, PolkaBridge uses two smart contracts operating in parallel to trade: one on Polkadot and the other on the connected blockchain, e.g., Ethereum. The same rule connects Solana, Polygon, and Binance Smart Chain.
