All You Need To Know About Genius Yield's DEX

Genius Yield’s decentralized exchange (DEX) has finally arrived! To refresh your memory, the Genius Yield’s DEX is an order-book DEX that fully utilizes the architecture of Cardano’s Extended Unspent Transaction Output (EUTXO) model. Unbound by the account model, Genius Yield’s DEX avoids many other risks inherent in Ethereum Virtual Machine (EVM) DeFi protocols that use an Automated Market Maker model such as impermanent loss. Genius Yield’s DEX is a part of the Genius Yield Platform.

Genius Yield harnessed the best of Cardano and integrated it into the DEX to give everyone the best-in-class trading experience.

On the Genius Yield’s DEX, there is no impermanent loss and no centralized batchers. Instead, the Genius Yield’s DEX more closely resembles the order-book exchanges you would encounter in traditional finance, where exchanges maintain comprehensive order books and match millions of buy and sell orders. However, while centralized exchanges in traditional finance and crypto rely on centralized intermediaries to ensure the efficient operation of their exchanges, Genius Yield does not. For Genius Yield’s DEX, the operations rely on decentralized and open-sourced technology to enable efficient and fast execution of trades.

Genius Yield’s DEX works on smart contracts that run on a decentralized public blockchain called Cardano. Cardano is one of the biggest proof-of-stake blockchains that supports the creation of decentralized applications with native assets as fungible or non-fungible tokens. To date, Cardano has a growing ecosystem of complex applications with almost 150 projects launched and almost 80 million transactions completed.

With the use of the order-book framework, Genius Yield’s DEX takes full advantage of Cardano’s EUTXO model that allows highly parallelizable and concurrent transactions. Having hundreds or thousands of different orders in an order book, while impossible in a decentralized account model framework, is now possible with protocols like the Genius Yield’s DEX. The Genius Yield’s DEX is also setting the groundwork to offer more advanced order types that are hard or even impossible to do with an AMM DEX.

The Community-led DEX built for Cardano

Genius Yield firmly believes that sustainable growth can only be achieved through collaboration with the Cardano community and the ecosystem. That’s why core elements of Genius Yield’s DEX like Smart Order Routers and Plutus Application Backend were open-sourced, and more is planned!

Moreover, $GENS token stakers will participate in the Fees Sharing Program, where 20% of fees generated by the Genius Yield Platform will be re-distributed amongst them!

V1 Features and Functionalities:

Order Types

• Market Order — Orders that execute at the best available price
• Limit Order — Orders that will only execute at the specific price indicated by the trader
• Limit Order, Partial Fills – Limit Orders can be partially filled
• Time Limit Order — Limit orders that will only execute within a specific period indicated by the trader
• Order Book Direct Fill — Directly fill the order from the order book.

Smart Order Routers (SORs)

• Decentralized off-chain bots that automate the scanning, matching, and execution of orders.
• SORs are decentralized and the technology has been open-sourced, allowing anyone to run a SOR and profit from the protocol.

Future Features

• Basic Yield Farming — Executed trades that are equal to or greater than 100 ADA in value will result in the traders receiving $GENS, the utility token of the Genius Yield Platform.
• 20% Fee-Sharing Rewards for $GENS stakers
• Advanced order types
• Market Maker Bots — Market maker bots will create liquidity on the DEX by continuously placing limit buy and limit sell orders, creating an efficient and robust trading experience. The bots will be open-sourced, allowing anyone to run a bot, and create their strategies too. The open sourcing of bots allows the liquidity of the DEX to be decentralized and determined by the market versus using a centralized market maker.

GENIUS YIELD’S DEX EXPERIENCE

1. Decentralized – Order transactions, including matching and execution, are handled by the SORs. SORs are open-source, allowing the processing of orders to be decentralized. In addition, SORs are technically superior to AMM-like batchers, having the ability to execute orders in parallel due to the high level of fragmentation created by the order book.
2. Deterministic – SORs can only execute the limit order at the price indicated by the trader. On the other hand, batchers on Cardano or validators on Ethereum can reorder trades to favor certain users or front-run submitted orders, potentially harming traders.
3. Efficient – The EUTXO architecture has allowed us to eliminate impermanent loss and other risks associated with AMM DEXs, creating a cost-efficient way for users to trade. In addition, by staking $GENS tokens, $GENS stakers can participate in the Fees Sharing Program.

About Genius Yield

Genius Yield is the all-in-one DeFi platform that combines an order book DEX with an AI-powered yield optimizer, “Smart Liquidity Vault”, built from the ground up to fully benefit from Cardano’s EUTXO-based ledger. The Genius Yield Platform is accessible both to beginners and seasoned traders. Our solutions are practical and easy to use, allowing participants to reap the benefits of DeFi in a mitigated environment anchored on security, transparency, and automation.

Genius Yield minimizes risk and maximizes profits in an intuitive, hassle-free way.

The Community DEX

At Genius Yield we firmly believe that sustainable growth can be achieved through collaboration with the Cardano community and the ecosystem. That’s why selected, core elements of our DEX were open-sourced:

• Smart Order Routers
• Plutus Application Backend “Atlas”
• [coming soon] DEX’s Smart Contracts
• [coming soon] Market Maker Bots

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This article originally appears here: https://cardanospot.io/news/all-you-need-to-know-about-genius-yields-dex