Genius DEX Whitepaper Summary: An Order-Book DEX and Yield Optimizer on Cardano

What makes Genius DEX different?

Fig.1: Order-book architecture — how Smart Order Routers interact with the fragmented pool state to match and process limit orders.
  1. Smart Swaps — Create limit, dynamic and algorithmic orders using programmable swaps.
  2. Highly parallelizable — Achieve high transaction throughput with an order book architecture designed and optimized for Cardano’s distributed EUTxO data structure.
  3. Concentrated Liquidity — Reduce impermentant loss, improve capital efficiently and earn higher rewards.
  4. Non-custodial & decentralized — Participate in a truly decentralized DEX that fragments pool liquidity and runs a network of independent Smart Order Routers (SOR).
  5. Smart Liquidity Vault — Earn passive income from yield optimization strategies by depositing liquidity into AI-managed vaults.

Advantages of Cardano’s EUTxO model over Ethereum’s Account-based model

Fig.2: On Cardano, transaction computation is off-chain and transaction verification is on-chain
  1. Security — Cardano’s smart contract language Plutus and the EUTxO accounting model are based on a functional programming paradigm (immutable, statesless, and local), resulting in more concise, predictable, and reliable execution.
  2. Determinism — A transaction’s impact on the blockchain can be predicted and validated locally before it is submitted to the ledger. Therefore, a validated transaction is guaranteed to succeed and the transaction costs are fixed.
  3. Parallelism — UTxOs inherently fragment the ledger state, making parallel transaction processing desirable. Therefore, smart contract design logic that maximizes parallelism can benefit from a significant increase in throughput.
  4. Scalability — On Cardano, transaction computation is off-chain and transaction verification is on-chain. This separation of responsibility makes it easier to implement various scaling solutions such as off-chain routing bots, side-chains and layer-2 solutions like Hydra.
  5. Composability — The functional paradigm underpinning Cardano facilitates smart contracts composability. Composability enables the emergence of complex behaviors from the interaction of simpler components, like legos.

Smart Order Router (SOR)

Fig.3: Smart Order Router — off-chain bots responsible for matching and processing orders

Smart Liquidity Vault

Fig.4: Smart Liquidity Vault — customizable algorithmic trading strategies for yield optimization

Fee Structure

Fig.5: Overall Genius Yield architecture
  1. A management fee — a percentage of the total value locked.
  2. A performance fee — a percentage of the vault’s profit.

Genius Yield’s Staking Program

Fig.5: GENS staking program
  • The redistribution of 20% of earnings from the Genius Yield platform
  • GENS received from liquidity mining incentives
  1. Access to advanced DEX trading features
  2. Access to premium Smart Liquidity Vaults
  3. Governance in Genius Improvement Proposals (GIP)
  4. Unlock Genius NFTs
  5. Get access to Genius Academy premium content

Conclusion

Disclosure

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Genius Yield

Genius Yield

Genius Yield is the all-in-one DeFi platform, that combines concentrated liquidity DEX with an automated yield optimizer.