Decentralized Exchanges (DEX)
A Decentralized Exchange or DEX is a platform that allows users to exchange their assets in the absence of a third party. Built on top of a Blockchain platform, a DEX allows seamless transfer of value in a trusted environment without the need to surrender control to a third party. DEX are becoming one of the essential components of the digital finance space. They introduces IDOs or Initial DEX Offerings which are a secured and unbiased way of raising funds for a protocol.
The primary purpose of a DEX is to bring back trust, security, reliability, and fairness to the digital domain that has been lost in the midst of centralized exchanges.
This is what Genius Yield aims to bring back. Genius Yield is a DEX built on the Cardano Blockchain. It allows projects and participants to raise funds in a truly transparent and unbiased market.
On GeniusYield, anyone can list their native token, provide initial liquidity to set the token price, and allow others to swap their native token for other assets listed on the platform.
In return, swappers pay a small fee, and liquidity providers earn a return on their deposits. This and future white papers will outline an initial product modeled after the protocol popularized by Uniswap, with several innovative adaptations for the Cardano blockchain.
The Cardano blockchain offers dramatic and exciting improvements in terms of throughput, fees, and energy efficiency. With the launch of Alonzo (Cardano's Smart Contract), it will be poised for a massive surge in economic activity and utility. As more and more native tokens are created to track and satisfy real-world value, there will be an excellent need for markets to trade and acquire these tokens. The above model provides a simple, scalable solution to meet these early needs, well-suited for the Cardano blockchain, and positions Genius Yield to expand into more efficient and more sophisticated protocols and instruments in the future.
Last modified 30d ago
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