Polkastarter recently announced its technical partnership with Covalent.
Covalent is a unified API service that is responsible for assembling blockchain-based data points to be used in DeFi and other blockchain applications. Polkastarter, on the other hand, is responsible for powering decentralized projects to help them quickly raise, as well as exchange, capital in a safe environment with the use of ERC-20 based assets and other means.
🤝 We're very excited to announce a technical partnership with @Covalent_HQ. This partnership will bring more transparency and anti-scam measures to token sales facilitated on the #Polkastarter Ecosystem. Keep reading: https://t.co/1WNx0qgVYn pic.twitter.com/Qmdr1jTYML
— Polkastarter (@polkastarter) November 13, 2020
By partnering with Covalent, Polkastarter will be able to enable transparency and anti-scam measures to every token sale in the ecosystem.
Covalent is known for providing trustworthy information from blockchain to investors. As Polkastarter adds Covalent’s services to its ecosystem, additional data sources will also be added to verify transactions in wallets. As token sale projects make use of Covalent’s tools, they can monitor the activities of wallets and check to see if illegal activities are going on, such as money laundering.
Daniel Stockhaus, CEO of Polkastarter, notes, “Polkastarter is excited to integrate Covalent’s data tools and technology into our ecosystem. One of the key aspects of Polkastarter is creating a safe environment for anyone to do token sales and swaps, in an honest and transparent fashion. Having Covalent’s suite of data tools available to our users, pool creators and token sale projects will augment the anti-scam measures and safety features we offer to our users. We look forward to a fruitful long-term partnership.”
Overall, integrating the services of Covalent into the environment of Polkastarter will ensure that the latter is safe for token swaps and sales.
Improving Anti-Scam Measures on Polkastarter
With the infusion of Covalent’s services, the anti-scam measures on Polkastarter can be improved. As Covalent is proficient in providing historical per wallet data, participants of token swaps and sales will be sure of who they are transacting with. Even better is that trust in the network will be increased due to this transparency. Covalent’s ability to assemble data for business support will also improve these anti-scam measures.
Startups and projects that are raising funds via the Polkastarter DEX will have easy access to the data provided by Covalent, and said projects won’t need any special knowledge to enjoy the benefits of Covalent’s transparency and data tools due to the network’s “no-node” approach.
The technology offered by Covalent can be used by Polkastarter token pool participants and creators to verify if token contracts are legitimate. This is done by Covalent reporting on: curated token lists, top wallets, token contract age, transaction volumes, proxy patterns, token holders, token contract verification, and warning flags such as scams and blacklists.
“We are delighted to be empowering Polkastarter’s environment with real-time, granular blockchain data. With instant access to historical blockchain data along with a cross-chain platform leveraging liquidity across multiple networks, Covalent and Polkastarter are taking steps toward an integrated DeFi ecosystem that will ultimately empower the user,” says Ganesh Swami, CEO of Covalent.
As Polkastarter will launch its MVP soon, Covalent will also play an essential role to ensure that a safe environment is provided for participants in the Polkastarter ecosystem.
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