Overview
ArthSwap is the dominant decentralized exchange on the Astar Network, Polkadot's multi-VM parachain that supports both EVM and WASM smart contracts. The DEX provides standard AMM functionality including token swaps, liquidity provision, and yield farming. ArthSwap captured the majority of DEX volume on Astar during the chain's peak activity period.
The protocol implements a standard constant-product AMM model (Uniswap V2 style) with farming incentives to bootstrap liquidity. ArthSwap also supports multi-hop routing for tokens without direct pairs. The interface is clean and functional, providing a straightforward trading experience on Astar.
As with other Polkadot ecosystem DEXs, ArthSwap has been heavily impacted by the broader stagnation of Polkadot DeFi. Astar's TVL has declined significantly, and trading volumes on ArthSwap have contracted accordingly. Being the biggest fish in a small and shrinking pond is ArthSwap's fundamental challenge.
Risk Factors
- Astar Network TVL has declined significantly from peaks
- Polkadot ecosystem DeFi has broadly underperformed
- Standard AMM design offers no technical differentiation
- Token incentives for liquidity mining create ongoing sell pressure
Conclusion
ArthSwap is a competent DEX that dominates a declining ecosystem. The 2.1 score reflects functional infrastructure against the headwind of Astar's shrinking DeFi activity. Recovery requires a broader Polkadot/Astar renaissance.