1. CEX vs DEX
The crypto space contains over 300 centralized exchanges, which are the backbone of crypto markets. Without these exchanges, buyers and sellers would be unable to transact. Many people tend to think that markets are mysterious entities, and that their buy and sell orders are fulfilled by magical fairies who animate the internet. Instead, markets are created by exchanges, who play the role of market-makers.
A market-maker is an institution that both buys and sells assets, and provide these services to the general public. And when a large number of investors use these exchanges to fulfill their buy and sell orders, the emergent price is called the “equilibrium price”, which is the price at which supply = demand.
That’s crypto economics 101. Without these centralized exchanges, such as Binance, Coinbase or Kraken, buyers and sellers would have no place to meet and to fairly negotiate the price at which they want to transact. The great thing about centralized exchanges, is that they are run by people, and so you can contact these people if you run into any problems.
Also, the price you see on a centralized exchange, is the price you get, so in that sense, centralized exchanges are like crypto super-markets. You go to the market and you see the price of an item you want to buy (or sell), and that is the price you pay (or receive).
Perhaps for this reason, over 90% of all crypto trades (by volume) take place on centralized exchanges, so it’s fair to say that these exchanges are the crypto market, or at least without them, the crypto market would be far smaller and less profitable.
However, in the past several years, the most dynamic and exciting part of crypto markets has emerged outside of the confines of centralized exchanges. These are decentralized exchanges or Defi trading platforms (Defi stands for “decentralized finance”), such as Pancakeswap (PCS) or Uniswap. Although these Defi platforms constitute less than 10% of daily trading volume, they are the fastest growing part of crypto markets.
Defi platforms are growing quickly because they are anonymous and highly secure (difficult to hack). Anyone can anonymously download a crypto wallet and trade on PCS or Uniswap, without revealing their identity and without anyone being aware of their activity.
That’s what’s so attractive about Defi; its undercover, and highly secure. Defi platforms play the same role as centralized exchanges, in that they also serve as market-makers. PCS and Uniswap both accept buy and sell orders, and so they literally create the market, where all of us can execute our trades at an agreed upon price. That agreed upon price is also the equilibrium price that Economists love to talk about so much.
Besides being anonymous, many new crypto projects sell their tokens on Defi platforms, and only later if they prove their worth, will they appear on centralized platforms.
For this reason, if you invest early in a great token on Defi platforms, by the time it is available on centralized exchanges like Binance or Coinbase, your thousand-dollar investment may be worth 10X-1,000X more than it was when it was first launched. Wow indeed!
While tantalizing, the main problem with Defi, is that the price you see is not necessarily the price you get. Because of the arcane underlying mechanisms that govern Defi (which will be explained in another article), the visible price that investors see on Defi platforms is often not the price they get when they decide to sell their crypto assets.
What? How can that be?
It’s a result of the fact there is no centralized administrator governing Defi markets, and consequently, the value of your asset may differ (and is often lower) on Defi platforms than on centralized platforms. For this reason alone, you can see why 90% of crypto transactions by volume take place on centralized platforms.
2. Eterna to the Rescue
As previously mentioned, Eterna brings the two aspects (centralized and decentralized exchanges) of the crypto market together in one place. Why is this important? Over 90% of crypto trades (by volume) take place on centralized exchanges, because on these centralized exchanges, the price you see is the price you get.
What is special about Eterna is that from the safety of your centralized exchange trading wallet, you can now access the exciting world of Defi. All you have to do is press a button, and Eterna will grant you access to PCS or Uniswap, where all kinds of new tokens are available, and that have yet to be listed on any centralized exchange.
Eterna is thus the first centralized exchange to give investors easy access to the Wild West of Defi. YEEEHAAAW!!!
Not only that, but Eterna will eventually go beyond PCS and Uniswap, to access most of the other blockchains of the crypto space; younger blockchains where new and exciting projects are emerging every day, and now centralized exchange investors have a way of accessing all these new projects, all with the click of a button.
But wait. That’s not all! Eterna has even more to offer.
Eterna is the first exchange in the world, whether centralized or decentralized, to offer its investors the possibility of participating in a share of its profits. For those investors who are willing to stake their tokens (which is a way of locking an investor’s tokens away for a period of time, determined entirely by investors), Eterna will distribute 50% of its net income to those staked investors.
Eterna thereby treats its token stakers as common shareholders, which is a feat unmatched anywhere in the crypto space.
3. Why Eterna is Unique
From the above, we can conclude that not only does Eterna offer services that exist nowhere else in the crypto market, but it also offers potential benefits to its investors that are unparalleled. No other exchange brings together the world of centralized exchanges and Defi together in the same place in such a user-friendly way, and no other exchange in crypto offers its token stakers 50% of its net income.
Eterna is also committed to innovation.
The novel connection between the centralized and decentralized world is just the beginning. Eterna plans to create a platform, where eventually its users can access almost any token available on any Defi platform, which is again unprecedented in the crypto space.
Eterna has other innovative plans as well.
How about an Eterna credit card, that allows you to spend your crypto earnings across a wide variety of retail stores in the real world or online? How about an Eterna hybrid blockchain, where crypto developers can launch their own projects at a fraction of the cost of other blockchains?
Once Eterna brings together the stable world of centralized exchanges and the dynamic and exciting world of Defi, the sky is the limit, and for all these reasons, Eterna plans to remain on the cutting edge of crypto innovation.
Please visit our TG room or join our Twitter channel for more information on how you can invest and participate in Eterna. Everyone is welcome to join the party!