Genius DEX on Cardano aims to be a DeFi game-changer
The cryptocurrency scene is going through a period of unprecedented growth. Crypto prices are rallying to all-time highs and moving faster than in any other time in history. While talk of price spikes and dizzying fluctuations dominate, DeFi is proving to be the real driver of financial inclusion and accelerant of crypto adoption.
Barely three years after the first truly functional and liquid decentralized exchange using the Automated Market Maker (AMM) model was launched in Ethereum, the DEX landscape has rapidly changed with satisfying improvements because of Cardano. The ultra-high demand in leading account-based smart contracting platforms, especially Ethereum, has exposed its underbelly. Challenges around scaling leading to high Gas fees are well-documented, thwarted efforts to promote the adoption of trustless solutions.
The Cardano Solution
In cognizance of these challenges, modern blockchains like Cardano have emerged as reasonable alternatives. Cardano is a third-generation blockchain that’s energy-efficient, secure, and scalable, incorporating an ingenious EUTxO model data structure for a better developer and user experience. Notably, the EUTxO model is fundamentally different from the account-based model used by Ethereum. Accordingly, dApps seeking to deploy on Cardano must be fully adapted for the network.
Cardano’s EUTxO architecture offers better determinism since a transaction’s impact can be determined and validated locally before being confirmed on the mainnet. This way, transactions have a high probability of succeeding while fees are predictable and fixed. Moreover, determinism and the network’s parallelism are solid bases for better scalability and implementation of various scaling solutions such as Hydra or off-chain bots. At the same time, Cardano dApps can enjoy higher throughput because of the network’s parallelism. It is on top of better security and composability of smart contracts because of the Proof-of-Stake network’s functional paradigm.
Genius Yield is Building on a Sound Base
These distinguishing fundamentals combined with expertly designed primitives as highlighted in the Genius DEX white paper make for a solid foundation for building a flexible and composable system.
Genius Yield is leveraging the benefits of Cardano’s EUTxO system to release the first non-custodial concentrated liquidity order-book DEX with a yield optimizer. The Genius DEX is explicitly adapted for Cardano’s exceptional architecture, rolling out an order-book DEX with fragmented liquidity. Further, the decentralized exchange incorporates artificial intelligence to automate trading strategies and yield optimization.
The composability and flexibility in Cardano give more latitude for Genius Yield’s developers to innovate, releasing unique features in the energy-efficient and scalable network’s ecosystem. Genius DEX completely overhauls the AMM model standard in account-based systems. The DEX’s benefits are further amplified by fragmented liquidity leading to a more arbitrary liquidity curve that’s more responsive to dynamic market conditions.
The following features differentiate the Genius DEX:
- Smart swaps for creating advanced orders besides the standard order types to include dynamic and algorithmic orders using programmable swaps.
- Concentrated Liquidity to drastically reduce impermanent loss and concurrently increases capital efficiency, leading to more rewards for liquidity providers and deeper liquidity for traders.
- Smart Liquidity Vault for users to earn passive income from yield optimization strategies by depositing assets into AI-managed vaults. It is built on top of the Genius DEX, tapping the DEX’s advanced functionalities and expressiveness to execute AI-powered algorithmic trading strategies.
- The non-custodial operation allows users to swap assets and access Genius Yield’s features from a user-controlled wallet.
- Smart Order Routers (SORs) operating as independent third-party bots making the Genius DEX more decentralized. SORs run order matching algorithms purposefully designed to facilitate the order flow across a wide range of market conditions. They play a critical role in improving the DEX’s operational efficiency by automating the scanning, matching, and processing orders, profiting from arbitrage opportunities.
The Genius Yield ISPO and Staking Program
The Genius DEX will launch in the first half of 2022.
There is an ongoing ISPO where ADA holders can delegate their stake to any of the four official Genius Yield Stake Pools. By mid-February 2022, over 10k participants had delegated over 194 million of ADA in the last ten weeks since the ISPO began on December 15, 2021.
Genius Yield has allocated 10 million GENS to the ISPO and has distributed 3.5 million GENS or 35 percent of the allotted amount. The ISPO will end by mid-June 2022 but depends on GENS distribution. Notably, how long a user stakes their ADA in the Genius Yield ISPO pools determines their bonus amounts and whether they will qualify for the upcoming Public Sale.
The DeFi protocol will also launch a staking program. Therein, GENS holders can stake and receive rewards from liquidity mining. Notably, Genius Yield is incentivizing staking and allows stakers to access advanced DEX trading features, access premium Smart Liquidity Vaults, participate in governance by voting on protocol proposals, and unlock limited-edition Genius NFTs.