Eterna is unique in that it has developed an AMM aggregator that can connect its CEX to the most popular DEX trading platforms, including PCS and Uniswap, all with the click of a button.
Eterna is a new type of crypto exchange. It brings together the two most important aspects of crypto markets, centralized and decentralized exchanges, together in one place. Eterna is “hybrid” because it brings together the two dominant modes of crypto trading together for the first time, and that’s why our exchange is called: “Eterna Hybrid Exchange”.
By doing so, Eterna can bring new investors into the crypto space and allow more experienced investors to experiment with parts of crypto markets they have never before accessed. Eterna can therefore add genuine value to the market, and is an investment of enormous potential.
Eterna is also the first exchange to offer 50% of its net income to its token stakers. That means that not only will Eterna’s users enjoy the most flexible trading environment available, but one of the most profitable, in terms of investors’ opportunity to participate in profit-sharing.
Centralized exchanges (CEXs) such as Binance and Coinbase, dominate the market because they are price-transparent. On CEXs, the price you see is the price you get, whether you are buying or selling. CEXs can achieve price-transparency because they are governed by an order book, which matches buy and sell orders.
By contrast, decentralized exchanges (DEXs), such as Uniswap, and Pancakeswap (PCS), are governed by Automatic Market Makers (AMMs), which use price oracles to collect market information from other platforms. Rather than matching buy and sell orders, AMMs employ liquidity pools (LPs), in which token pairs or a USD equivalent must be deposited, allowing traders to execute their buy and sell orders.
However, AMM-governed DEXs suffer from a significant complication called the price impact problem, which means that investors will likely receive less (in dollar terms) than appear in their wallets when they sell their tokens. Price impacts are caused by a lack of liquidity (money available) in a token’s LP.
Other related problems, such as slippage and impermanent loss mean that trading on a DEX can be confusing and disappointing. Despite these drawbacks, the AMM aggregator itself remains a key innovation that adds significant value to crypto markets.
Eterna is unique in that it has developed an AMM aggregator that can connect its CEX to the most popular DEX trading platforms, including PCS and Uniswap, all with the click of a button. This is significant because PCS is the primary trading platform for the Binance Smart Chain (BSC) and Uniswap is the primary trading platform for the Ethereum blockchain, which are the two most active blockchains. More new projects are launched on the BSC and on ETH than any other blockchains.
Eterna’s proprietary AMM-aggregator brings centralized and decentralized exchanges together in one platform for the first time. More precisely, buy and sell orders on Eterna can be fulfilled internally as order book transactions, but if the order book is insufficiently deep, buy and sell orders will be fulfilled via our AMM-aggregator, which executes the transaction through PCS or Uniswap.
Alternatively, investors can bypass Eterna’s order book altogether in order to directly access DEX trading through our AMM. Figure 1 below depicts Eterna’s basic trading architecture.
Why is this significant? Approximately 92% of crypto transactions by volume take place on CEXs, such as Binance and Coinbase, while some of the most exciting new projects are launched on DEXs such as PCS and Uniswap, which is why decentralized finance (Defi) is the fastest growing part of crypto markets.
Eterna is the first exchange to enable the majority of crypto investors, who trade primarily on CEXs, to access the dynamic world of Defi. That means that Eterna is currently the only centralized exchange that can appeal to all types of investors and can grant investors access to the disparate parts of the crypto market.
Eterna will remain on the cutting edge of crypto innovation. In fact, its AMM-aggregator is essentially a proof-of-concept, and Eterna has innovation plans that launch it far beyond any other exchange.
Eterna is currently developing new technology that will permit investors to trade any asset, anywhere in the crypto space, all from the familiar environment of a centralized exchange. No other exchange, centralized or decentralized, even comes close, in terms of Eterna’s investment capabilities, or in terms of the potential benefits bestowed upon Eterna token holders.
Eterna represents the future, as other crypto exchanges will be forced to copy its capabilities and offer their investors similar benefits, or risk being left behind the new wave of crypto innovation that Eterna will unleash.