The Ease and Accessibility of DEX Trading, With the Liquidity Assurances of a CEX — The Acura Network Solution
The Ultimate Trading Decision
Investors within the world of cryptocurrency are often tasked early on in their careers with a critical decision: Do I trade on a Centralized Exchange (CEX) or a Decentralized Exchange (DEX)? Whichever choice they make comes with its own set of benefits and, unfortunately, ramifications.
If one were to choose a CEX, they will enjoy the amenities of nearly endless liquidity and near instant transaction speed, at the cost of having to host on a centralized server that has the potential to become hacked.
On the other hand, a DEX will provide a wide variety of niche tokens that one could not find on a CEX and, therefore, they can take advantage of highly profitable trends early on within the crypto-industry (ie. DeGaming-related tokens). However, a DEX’s liquidity relies on individual investors providing liquidity to the Exchange and, as a result, liquidity is often subpar, which can significantly impact one’s ability to trade between tokens.
The Best of Both Worlds
We at Acura Network are highly aware of this trade-off Crypto-investors have long had to succumb to, and that is why we have created the new-age Exchange that will provide the benefits of both a CEX and DEX into one simple platform. From a superficial standpoint, our Exchange is technically considered a DEX, but once you understand its underlying mechanics you will see how its infrastructure is designed to provide the most efficacious trading experience for all investors within the crypto-space.
While we have described some of the most pertinent benefits and downfalls inherent to DEXs and CEXs, there are many more that we need to take into account when considering how Acura Network’ DEX 2.0 platform provides the upgraded co-evolution of these Exchange types.
Legitimacy Versus Early Access to Project Investments
For one, CEX provides a great deal of legitimacy for their tokens through extensive auditing before it can list on the Exchange, whereas a DEX is permissionless and, therefore, allows any token to be listed regardless of its validity. While we want to preserve the permissionless aspect of DEXs on Acura Network, so as to assure niche tokens can be listed without being limited by high audit costs, we also want to make sure that the tokens are scam-free and are a worthwhile investment.
Therefore, we are implementing a significantly lower cost auditing system onto our DEX that will allow the vetting of niche tokens that don’t have the starting capital for a more formalized audit. The end result is that when one trades on the Acura Network DEX 2.0, they will have the DEX-related benefit of having access to niche tokens early on in their economic uprising, whilst being assured that these tokens have been validated and are, therefore, legitimate.
Fast Transaction Speed Versus Being Hack-Proof
As stated at the start of this article, CEXs outmatch DEXs significantly in regards to their trading speed. The reason for this is that the transactions are off the blockchain, and are actually undergone on a centralized server, therefore making CEXs highly susceptible to hack attacks. This contrasts a DEX where all transactions occur on-chain and, therefore, are highly resistant to hacks, but succumb to the transaction speeds inherent to the blockchain they host on.
Acura Network provides the best of both worlds in regards to trading speed; Our DEX 2.0 transactions are only done on-chain, so as to assure they are hack proof, whilst maintaining CEX-level trading speeds. We are able to do this due to Acura Network being hosted on the Solana blockchain, which is a revolutionary Web 3.0 network that allows throughput so high that it rivals the capabilities of CEXs, but does not succumb to the hackability issues of their associated off-chain servers.
Liquidity Assurances Versus Passive Earning Potential
As stated above, DEXs are often limited in liquidity relative to CEX and, therefore, trading on a DEX can be difficult or outright impossible particularly for relatively newer tokens within the marketplace. However, with Acura Network’s highly advanced Auto-Generating Liquidity Protocol, liquidity will be regularly injected into this DEX at a rate that will rival liquidity found on CEXs.
While this protocol can be quite complex from a mechanistic standpoint, to put simply, we have provided industry-leading incentivization models to ensure the highest proportion of liquidity is inputted into our DEX relative to any other Exchange currently in the marketplace. Additionally, ensuring that liquidity is still provided by individuals means that the passive earning potential inherent to DEXs, which is simply not possible on a CEX, is preserved on our platform.
As you have now learned, Acura Network’s DEX 2.0 is the perfect solution to those who cannot choose between trading on a CEX or a DEX, simply due to the fact that it contains the critical amenities of both of these platform types. This DEX 2.0 solution will have the token inclusion of DEXs whilst preserving the token legitimacy assurances inherent to CEXs, the instantaneous trading speeds of a CEX with the hack-proof infrastructure of DEXs, as well as the liquidity injection of a CEX to ensure trading will be a streamlined experience 24/7.
We believe that this model will revolutionize how Exchanges are utilized within the future of the crypto-space, and are incredibly excited to be the ones to provide this breakthrough technology to the investing world!
To learn more about our underlying technology, check out our website here, at which point you can simply access our Whitepaper to obtain an in-depth understanding of the inner workings of our ecosystem.