Idex positions itself as the inaugural hybrid liquidity decentralized exchange (DEX) that merges an order book system with an automated market maker. By integrating the efficiency and characteristics of a conventional order book with the safety and liquidity of an AMM, it offers a fresh perspective on decentralized exchanges. The innovation lies in using an off-chain trading engine paired with on-chain trade settlement, providing users with multiple advantages.
This hybrid model eliminates failed trades and unnecessary gas fees, leading to a smoother and more efficient trading experience. Immediate trade execution prevents issues like front-running and sandwich attacks, allowing users to trade without waiting for previous transactions to complete. This also enables more advanced order types and strategies, such as limit orders, and opens up opportunities for arbitrage with other platforms.
Idex's ambitious roadmap foresees a multi-chain future. Currently operating on Ethereum and Binance Smart Chain, it aims to expand to second-layer solutions and Polkadot by the end of 2021, along with introducing a referral system. Future plans include offering leveraged trading and expanding to additional layer one and layer two blockchains.
Who Are the Founders of Idex?
The masterminds behind Idex are CEO and co-founder Alex Wearn and his brother, COO Phil Wearn. Alex brings experience from industry giants like Amazon, IBM, and Adobe and holds a degree from the Kellogg School of Management. Phil's background is in accounting, with a degree in astronautical engineering, and he has entrepreneurial experience. The team is further strengthened by CTO Brian Yennie, a software engineer with over two decades of experience. According to LinkedIn, the current Idex team comprises 29 members. Idex made its debut in 2017, and its 2.0 version launched in fall 2020 after securing a $2.5 million seed investment led by G1 Ventures and Borderless Capital, with participation from Collider Ventures and Gnosis.
What Makes Idex Unique?
Idex sets itself apart by ingeniously combining an order book system with an automated market maker. The platform uses an off-chain trading engine that rivals the performance of centralized exchanges and ensures proper sequencing of trades. Initially, trades are processed in an off-chain order book and are only moved on-chain once successfully matched and executed.
This setup means users avoid extra network fees associated with placing and canceling orders. Additionally, trade placements happen in real-time, allowing for more sophisticated trading and market-making strategies, including stop-loss, post-only, and fill-or-kill.
In the order book, the AMM guarantees liquidity by showing virtual limit orders alongside actual ones, effectively representing AMM liquidity. Orders are typically settled either as pure AMM or as a blend of AMM and limit order liquidity.
The use of smart contracts in Idex decentralizes the custody of funds and the settlement of trades. While the smart contract facilitates off-chain executions, the actual settlements occur on-chain with a delay. It acts as an escrow, restricting fund movements until settlement is complete. Additionally, trade sequencing is managed, and the smart contract prevents indefinite fund restrictions. It also enforces ownership and authorization, ensuring users retain custody and can engage in market-making without needing extra infrastructure.
How Many Idex (IDEX) Coins Are There in Circulation?
The total supply of IDEX tokens is 1 billion. The distribution is as follows:
- 40% for market maker rewards, marketing campaigns, and airdrops
- 10% for IDEX members
- 25% for the team
- 10% for a future employee token pool
- 10% reserved for future use
- 5% for business expenses
Users can also participate by running a lightweight node and staking their IDEX, given they have a minimum of 10,000 IDEX.
How Is the Idex Network Secured?
IDEX operates as an ERC-20 token on the Ethereum blockchain. Its security has been audited by Quantstamp, a leading name in blockchain security that has collaborated with noteworthy projects like Maker, Compound, and Avalanche. So far, Idex has upheld its high-security reputation without any incidents of security breaches.
The ERC-20 standard is commonly adopted for new tokens on the Ethereum blockchain. Ethereum is favored for its robust platform, supporting many decentralized applications and exchanges. The network's security is maintained through a proof-of-stake consensus mechanism, requiring validators to stake 32 ETH to participate. A decentralized network of nodes verifies transactions, securing the Ethereum blockchain.
Can Idex Hit $1?
The innovative blend of order book and automated market maker has led to a significant rise in IDEX's value, soaring from under $0.10 to a peak of over $0.60. While the price has since adjusted to around $0.30, there is potential for growth. With further deployments on layer one and layer two blockchains and continuous product improvements, Idex could continue on its upward trajectory.
Where Can You Buy Idex (IDEX)?
IDEX can be purchased on platforms such as Binance, Uniswap V2, Gate.io, and Balancer.
