Eterna is incorporated in Estonia and Lithuania and is licensed under EU law.
Eterna Hybrid Exchange claims to be “the next-generation of crypto trading”. What supports this bold statement? Can Eterna really challenge Binance, Coinbase, Kraken and OKX? Will Elon Musk, Michael Saylor, and other Bitcoin maximalists take notice? Let’s examine the evidence.
What is Eterna?
Eterna Hybrid exchange is a new generation of crypto exchanges, that benefits from the strengths of centralized exchanges (CEXs) and decentralized exchanges (DEXs). Eterna is incorporated in Estonia and Lithuania and is licensed under EU law. Eterna is also distinguished from other exchanges by several distinct features. First, Eterna is a centralized order book exchange, and in Version 2, Eterna will deploy its proprietary AMM aggregator, which is the defining characteristic of a decentralized exchange. Second, Eterna is the first crypto exchange to distribute 50% of its net income to its token stakes. Third, Eterna provides token incubation services, through Eterna Incubator, and will create its own launchpad and hybrid blockchain (EHXC), that will lower the transaction costs of launching new projects and provide the crypto space with a more secure and efficient operating environment. Consequently, and for all these reasons, Eterna provides investors with a unique and sustainable underlying value proposition.
Each of these features needs to be analyzed in further detail.
Legal Incorporation and Licensing
Not all exchanges are legally incorporated in a well-defined domicile. Binance, for instance, is not registered in any country, and it is unclear what regulatory regime it operates under. While this has not stopped Binance from succeeding, it made investors more aware of the necessity of proper licensing and registration. Eterna is legally registered and licensed to operate in the European Union, which lends credibility to its enterprise value.
Hybrid Exchange?
Eterna is also the first, or at least one of the first, truly hybrid exchanges, which combines centralized and decentralized trading. This is significant because 90% of trading volume is generated on centralized exchanges, and while Defi platforms, such as Pancakeswap or Uniswap, represent the most quickly growing part of the crypto market, most investors tend to shy away from its uncertainty and volatility. However, on Eterna investors who are used to the safety and transparency of a centralized platform, can now reach the depths of the Defi space, giving them access to the entire crypto space from one platform for the first time.
Profit-Sharing
Eterna’s value proposition for investors is underlined by the fact that it is the first exchange to share 50% of its net income with token stakers. In other projects, token stakers only receive a variable APY of rewards, which increases the number of tokens they hold over time. Eterna not only rewards its token stakers by increasing the number of tokens they hold over time, but Eterna also shares 50% of its net income with its stakers, paid out in stablecoin (BUSD and USDT) over regular intervals. As Eterna pays out more BUSD and USDT to its stakers over time, so too will its price increase, and so profit sharing provides a price floor for the EHX native token. Consequently, Eterna rewards its token stakers in three ways: price appreciation, APY rewards in extra tokens, and a share of the exchange’s net income.
Cross-Chain Trading
Eterna’s native token, EHX, also trades cross-chain, on the Binance Smart Chain and the Ethereum network, which are connected by the Eterna bridge. Cross-chain trading allows token holders to engage in cross-chain arbitrage if the price of EHX on one chain significantly exceeds the price of the EHX token on the other chain. Eterna is thus available for investors on the two most popular chains, and so too will staking rewards and profits be distributed to stakers on both sides of the Eterna bridge. BSC investors will receive their profit share in BUSD and ETH investors will receive their profits in USDT, paid out at regular intervals.
Conclusion
Eterna’s development plans are ambitious. In Version 2, Eterna will combine centralized exchange trading with AMM-aggregator access to Pancakeswap and Uniswap. Eterna then plans to extend its Defi access to swaps on the Polygon, Cardano and Avalanche chains. There are also rumors that Eterna plans to build its own hybrid blockchain and will eventually access the Solana network, which is a set of achievements that have never been replicated in the crypto space. For all these reasons, Eterna represents a unique value proposition for investors and equally great rewards for its users.
Disclaimer: The information posted in the article is for educational purposes only. By using this, you agree that the information does not constitute any investment or financial advice. Do conduct your own research and reach out to financial advisors before making any investment decisions.
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