This paper introduces the key concepts that differentiate Genius DEX from a typical AMM DEX. It is an order-book-based concentrated liquidity DEX designed to take advantage of benefits provided by EUTxO smart contracts, such as security, determinism, parallelism, scalability and composability. Genius DEX offers powerful features like Smart Swaps, which enables programmable and composable orders, and concentrated liquidity, which provides higher capital efficiency and higher yield opportunities.
Furthermore, the Smart Liquidity Vault is introduced as a powerful secondary protocol built on top of the Genius DEX, providing yield optimization opportunities by automating algorithmic trading strategies. The overarching objective is to democratize DeFi for everyone by providing an all-in-one solution to yield optimization opportunities.
The content of this paper and the DEX protocol design are in draft form. Genius Labs reserves the rights to change, and make any corrections as it sees fit. Genius is taking an empirical and iterative approach to research and development to better understand limitations, evaluate tradeoffs, and fine tune parameters in order to converge to an optimal solution. None of this content should be used to make any form of financial, tax, or legal decisions. This paper is for the benefit of the public and to foster open discussion and collaboration within the DeFi community.