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Genius Yield

After years of development, Genius Yield has finally launched its highly anticipated next-generation order book Decentralized Exchange (DEX) on the Cardano blockchain. The launch of the new Genius Yield product has attracted lots of attention within the ecosystem as users have been looking forward to this development for a long time. This article will provide insight into Genius Yield, and share the intricacies of the new order book DEX and how it will affect the Cardano community.

Green platform logo with a black background

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What is Genius Yield?

Genius Yield is an all-in-one DeFi platform that helps its users utilize investment opportunities with an automated yield optimizer. Managing capital, especially in the world of DeFi, can be a complex and time-consuming process. To enhance user experience Genius Yield minimizes risk as it algorithmically automates trading strategies for optimized outcomes and minimizing risk exposure. Their smart liquidity vault and Smart Liquidity Management protocol work together to provide an intuitive, hassle-free, and secure profit maximization experience.

Advantages of the Genius Yield Order Book DEX

The DEX order book from Genius Yield addresses the common challenges faced by Automated Market Maker (AMM) models which limits yield optimization opportunities. Genius Yield differs from AMMs by eliminating impermanent loss which ensures a secure and stable trading environment for users. The usual AMM experience is one that often includes faults such as a higher rate of slippage during order execution as a result of liquidity pool mechanics. When you buy Genius Yield you minimize the risk of such slippage through the implementation of precise order execution and aligning transactions closely with the intended prices.

By taking advantage of Cardano’s Extended Unspent Transaction Output (EUTxO)-based smart contract ledger, the Genius Yield DEX is a new generation of Genius DEX that maximizes profits and leverages the EUTxO benefits such as:

  • Security
  • Determinism
  • Parallelism

Other powerful features like Smart Swaps enable programmable and composable orders, as well as concentrated liquidity positions that ensure a higher level of capital efficiency and yield opportunities to fully benefit from. Secondary protocols such as Genius’s Smart Liquidity Vault are supported by DEX’s improved order expressiveness and liquidity flexibility. Advanced functionalities offered by the Genius DEX enhance users’ yield optimization opportunities with unique and powerful algorithmic trading strategies.

DEX order book shown including the process of placing an order and statistical insight

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Security

By creating contracts that are immutable and only have the possibility of being consumed once, transaction verification has been simplified on the platform. Transactions on the platform are also inherently stateless because they only track state transitions. The validation process only depends on the transaction itself with its inputs and outputs, creating inherently local validators.

Determinism

With DEX, transactions are validated off-chain in the user’s wallet before interacting with on-chain states in any way. Thanks to this capability, a validated transaction is guaranteed to succeed and the transaction costs are fixed. While it is true that a submitted transaction can still be rejected, no fees will be paid as the transaction will not be applied to the ledger state.

Parallelism

Due to the local dependency of validators and the inherent state fragmentation provided by UTxO’s, parallel processing of transactions is both trivial and natural. With that being said, if two transactions try to consume the same input, the processing one will automatically force the other to get rejected. This is essentially the UTxO concurrency issue as it is often referred to. Therefore, design patterns that trade concurrency for parallelism can benefit from a significant increase in throughput while keeping contract execution time the same.

Conclusion

The launch of the next generation of Decentralized Exchange automated yield optimizer represents a significant breakthrough for Genius Yield in decentralized finance. As Genius Yield continues to evolve, with features like smart liquidity vaults and others, it reinforces its commitment to innovation within the Cardano community and allows users to fully benefit from Cardano’s yield optimizers and partners.

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