Overview
Polarity Exchange launched in 2020 on the Turtle Network, a Waves fork. It aimed to blend DEX level self custody with CEX like speed and low predictable fees. Users kept their keys, traded USDT based markets and avoided KYC friction. Today public activity is effectively inactive.
Wallet first design
Polarity shipped with a built in Vault. Sign up used only email, then a master key encrypted the local seed. No third party could view the vault. No KYC. That privacy first stance appealed to sovereignty minded traders and set the tone for the product.
Hybrid trading model
Execution combined on chain settlement with a centralized matcher for speed. Assets were wrapped for seamless deposits so trades did not wait on confirmations. USDT acted as the base pair across markets to keep pricing stable during swaps.
Low fixed fees
Fees were about one cent per trade. Distribution routed a slice to maker rewards, a portion to network liquidity and a configurable chunk to user selected security tiers. Spending a little extra unlocked stronger protections.
Then activity faded
By 2021 tracking platforms began flagging it as inactive. Volumes trended to zero, APIs went quiet and charts stopped updating. Reports surfaced of funds lost around $353,000 after a glitch or vulnerability, which further damaged trust.
Polarity at a glance
| Feature | Insight |
|---|---|
| Launch year | 2020 |
| Base chain | Turtle Network (Waves fork) |
| Custody model | Self custody vault with encrypted seed |
| Matching | Hybrid - off chain matcher with on chain settlement |
| Base pair | USDT only |
| Fees | ~$0.01 per trade with security tiers |
| KYC | Not required |
| Status | Inactive - APIs and volume gone |
| Trust signals | Loss incident reported, visibility low |
Strengths & weaknesses
| Strengths | Weaknesses |
|---|---|
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Final take
Polarity Exchange reads like an early DEX experiment with strong ideas about sovereignty and fees. The vault model and hybrid matching were thoughtful, but without sustained liquidity and transparent comms the venue faded. Today it is mostly a reference point rather than an active trading destination.