Genius Yield Orderbook Dex Mainnet Launch!

Hi,

This is an exclusive edition dedicated to our partners - Genius Yield, marking the launch of their mainnet today!

Genius Yield stands out as a novel Orderbook DEX on Cardano, leveraging the advantages of parallelization and the EUTXO architecture. This innovative approach ensures efficient trading while addressing concerns like centralization and MEV created through the 'batcher' system.

While orderbooks are commonplace in traditional finance, their adoption in the crypto sphere has been limited, primarily due to the challenges in creating a seamless orderbook experience and maintaining liquidity. Cardano's EUTXO architecture would supercharge an orderbook DEX, and that's what we are seeing with Genius Yield DEX.

Let's see how it works:

Genius Order Types & Smart Order Router

When users place an order on Genius, they have the flexibility to define additional conditions that must be met for the order to be matched. For instance, a limit order only matches when the specified prices are reached. Currently, Genius supports over six order types, providing traders with a diverse range of options. Furthermore, there are plans to offer additional order types and enhance the platform's versatility to meet evolving market needs.

The other key component is the decentralized order-matching function. Genius Yield has developed its solution - Smart Order Router, which allows anyone to be the matching engine.

The Smart Order Router (SOR) scans the chain for active orders; it will pick the orders and match them based on conditions like price or advanced configurations. The Operator will make money from the difference between buy and sell orders, known as the bid-ask spread.

These SOR operators are different from batchers. Batchers are needed when frequently trading against the same pool. However, here, we are trading against individuals instead of a pool. Thus, you don't need a single batcher performing batches; you can have multiple matches concurrently matching orders.

Benefits:

An orderbook is more natural to Cardano due to its parallelization capabilities. The current set of DEXs are generally AMM DEXs, where transactions are processed sequentially and thus sacrifice speed and efficiency.

An onchain orderbook DEX brings two key advantages:

No Impermanent Loss: Orderbooks don't have the 50/50 LP pools we are used to; instead, they rely on users becoming market makers. Market makers can form their strategies and don't need to suffer from impermanent losses.

Decentralization. Genius Yield's EUTXO Orderbook model is open-source, allowing anyone to be a matcher. This massively reduces a key centralization vector.

Order transactions, including matching and execution, are handled by the SORs. SORs are open-source, allowing the processing of orders to be decentralized.

Genius is introducing user rewards through a Fee-Sharing Program. Under this program, 20% of the fees generated by the Genius Yield Platform will be systematically redistributed among token stakers, providing them with a proportionate share of the platform's financial benefits.

Genius brings in something unique and will help push Cardardano DeFi forward.

Try out Genius Yield DEX today!

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