Is Eterna the Real Thing?
Eterna Hybrid Exchange is a new crypto exchange that makes big claims. Are these claims supported by evidence? Eterna claims to be the next Binance or FTX + new Defi features that no other crypto exchange possesses. But are these claims true? Can Eterna challenge the crypto exchange giants, such as Binance, Coinbase, Kraken and OKX? Will Elon Musk, Michael Saylor, and other Bitcoin maximalists take notice? Let’s examine the evidence.
What is a Hybrid Exchange?
Eterna is a hybrid exchange, which means that it benefits from the strengths of centralized exchanges (CEXs) and decentralized exchanges (DEXs). A centralized exchange is governed by an order book, which matches buy and sell orders. The strength of a centralized exchange is buyers and sellers can receive the price set on the exchange, and for that reason alone, 90% of crypto trading volume is generated by centralized exchanges. Perhaps also for this reason, centralized exchanges are also the main targets of hackers, and any information stored on the exchange is potentially insecure. Decentralized, or Defi platforms by contrast, are far more secure than centralized platforms. Defi platforms, such as Pancakeswap (PCS) or Uniswap, are not only anonymous, but are almost impossible to hack.
These features make Defi markets the fastest growing segment of the crypto space. But they are not without their drawbacks, since prices on Defi platforms suffer from slippage and other forms of price uncertainty, which maike them unattractive to serious investors. It is no wonder that Elon Musk bought all his Bitcoin in Coinbase, and the biggest whales in the crypto space, prefer FTX, Kraken, and Binance.
As a hybrid exchange, Eterna brings together the two parts of the crypto market for the first time, which allows investors who are used to the transparency of a centralized platform to reach the depths of the Defi space, giving them access to the entire crypto space from one platform for the first time.
Value and 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, that 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.
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.
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: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.