Published
2 years ago on
December 01, 2021
IDEX, a decentralized cryptocurrency exchange based in San Francisco, has launched its v3 Hybrid Liquidity on Polygon, a Layer 2 scaling solution.
The launch introduces five key features to the DEX: combined automated market making and order book liquidity; trading rewards paired with liquidity mining; full transactional guarantees; a ‘real limit’ for trades and stop-loss orders, and low transaction fees across its platform.
According to IDEX, its project is aimed at alleviating the “primary shortcomings within the DEX ecosystem, including front-running, slippage, and sandwich attacks, while also protecting users from the surging gas fees on the Ethereum network.”
IDEX claims to have an innovative exchange design that offers crypto traders with the same features and functionalities that would otherwise have been limited to centralized exchanges, but with the fully configured “Hybrid Liquidity” features built into its platform to ensure security and liquidity of AMM pools.
IDEX notes that the the DeFi sector has continued to boom exponentially, with the total value locked in DeFi protocols now reaching $256.91 billion, which statistically is a 1,089.4% surge. Despite this explosive growth, there have been persistent issues surround the DeFi ecosystem. IDEX aims to address these issues by providing traders with the primary elements of CEXs and DEXs, while maintaining settlement costs at a minimum: between 10,000-100,000x cheaper than layer 1 Ethereum.
“DeFi has been hamstrung by issues like gas prices, front-running, and slippage since its inception, yet few solutions have truly offered answers to these problems,” shares IDEX CEO Alex Wearn. “The novel Hybrid Liquidity design protects users from these pain points, while simultaneously generating higher returns for liquidity providers to boost the scalability of the wider decentralized economy.” he adds.
Until recently, failed transactions, front-running, and the continuing losses in terms of miner extractable value (MEV) has de-incentivized participation in the DeFi ecosystem. It’s a serious problem that needs to be addressed with technically superior solutions. According to the firm, they will be releasing more features designed to resolve these difficulties in the DeFi sector.
In its current iteration, IDEX’ v3 Hybrid Liquidity offers an order book and AMM (automated market maker) liquidity pools that would serve to protect users through instant trade execution across the most optimal combination of limit orders and pooled liquidity. According to IDEX, such an approach results in higher returns for liquidity providers, hence allowing for advanced trades such as stop-loss and limit orders, as well as a fairer environment for real-time trade execution.
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.
