Hello Hive,
How's it going? It's NEO here, a Telos Senior Eagle with another news straight from Telos Blockchain :)
In this post I would like to present you some information about OmniDex which I personally use since launch and it is a first decentralized exchange built on TelosEVM.
**Remember that I am not a financial advisor and all I said in this post is my own personal opinion. DYOR - Do Your Own Research!**
This post is more educational about Decentralized exchanges so if you are familiar with this topic and want to check Omnidex straight away than just go to [https://omnidex.finance](https://omnidex.finance). You would need to have Telos coin and how to get it you can find here [https://telos.net](https://telos.net) -> Explore (top of the page) -> EVM Platform -> Get Started (on left side you've got all info about how to get Telos on TelosEVM and your MetaMask)
Let's start from beginning :)
**What is Decentralized exchange?**
> Decentralized exchanges (DEX) are a type of cryptocurrency exchange which allows for direct peer-to-peer cryptocurrency transactions to take place online securely and without the need for an intermediary.
To be more specific, you basically only connect your wallet like MetaMask and don't need to create your account to use it, do KYC, give your personal details, send documents etc. like it is on **Centralized exchanges** like Binance, Huobi etc.
OmniDex also offers farming and staking of tokens which is called **Decentralized Finance (DeFi)**. What is it?
> Decentralized finance (DeFi) offers financial instruments without relying on intermediaries such as brokerages, exchanges, or banks. Instead, it uses smart contracts on a blockchain. DeFi platforms allow people to lend or borrow funds from others, speculate on price movements on assets using derivatives, trade cryptocurrencies, insure against risks, and earn interest in savings-like accounts. DeFi uses a layered architecture and highly composable building blocks. Some applications promote high interest rates but are subject to high risk. As of October 2021, the value of assets used in decentralized finance amounted to $100 billion.
DeFi becomes very popular in crypto world due to a very high profitable options with huge APR/APY that you can choose but as you can see above it is also high risk so always invest funds/money that you can loose and never ever invest funds/money that your life depend on like money for your rent, bills, food, mortgage etc.
Ok let's get back to action. What options do you have here:
**Trade**: As usual you've got 2 pairs and you just trade between them, easy :)
**Add Liqudity**: You must have same amount in $$ of 2 pairs to add for liquidity to farm (you check which farm first you want to pick)
**Farm**: This is where you pick a farm you would like with your added liquidity and you start farming with different percentage of APR/APY (farming is higher risk one because of impermanent loss)
**What is impermament loss?**
> Impermanent loss happens when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them. The bigger this change is, the more you are exposed to impermanent loss. In this case, the loss means less dollar value at the time of withdrawal than at the time of deposit.
**Staking**: You must have some amount of token available for staking, you stake and earn in most cases same token daily. You can compound to the pool back to get more or just harvest and have it in your wallet. This one is lower risk than farming because you basically don't lose any tokens you stake.
Now its time for my own experience and opinion. I personally invested into CHARM token and staked it because I believe in Telos and whole ecosystem. Since I started to discover what it really have to offer I am so pumped about it :) I prefer staking because I don't loss tokens I staked. There might be change in dollar price but I still keep the same amount of tokens I staked and that is exactly what I usually pick but its all about you. Farming might be more profitable in the long term or even short term, this is that game you have to play with yourself and I said before never invest money that you can't lose. I can't tell you what is better, I can only share with you my knowledge and experience.
**Pros of Omnidex and TelosEVM Blockchain:**
1. Very fast and cheap transaction (between $0.05-$0.10)
2. Open ecosystem with DeFi, NFTs, Metaverses and anything you can imagine.
3. Huge community that grows day by day on Telegram, Discord, Twitter, Facebook, YouTube etc.
4. Mainnet and EVM which opens doors to be able to suits anyone
5. Decentralization
6. Amount of projects that comes to Telos daily
7. Presales and ability to invest before anyone else
8. 10,000 Transactions Per Second
9. Still low MarketCap
Cons of Omnidex and TelosEVM Blockchain:
1. Percentage change when more people farm or stake :D
2. Honestly I can't say anything more about cons
And that's it I would like to share with you today.
**I am just a messenger here, I can't tell you what you should do or not. Always DYOR - Do Your Own Research and never invest money that you can't lose.**
Time for links now if you would like to take a part in this projects:
Omnidex Website: [https://omnidex.finance](https://omnidex.finance)
Omnidex Twitter: [https://twitter.com/OmniDex1](https://twitter.com/OmniDex1)
Omnidex Telegram: [https://t.me/omnidex1](https://t.me/omnidex1)
Omnidex Discord: [https://discord.gg/Fa6n54AW](https://discord.gg/Fa6n54AW)
Telos Website: [https://telos.net](https://telos.net)
Telos Twitter: [https://twitter.com/HelloTelos](https://twitter.com/HelloTelos)
Telos Telegram: [https://t.me/HelloTelos](https://t.me/HelloTelos)
Telos Discord: [https://discord.gg/RJuNTFe3S4](https://discord.gg/RJuNTFe3S4)
If you have any questions just left me a comment and I will try my best to reply to you as soon as possible :)
Thank You.
Stay Safe.
/NEO
Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@neopch/omnidex-first-decentralized-exchange-built-on-telos-blockchain)
hiveblocks