IDEX (IDEX): A Hybrid Liquidity DEX With Gas-Free Trading

Both centralized exchanges (CEXs) and decentralized exchanges (DEXs) offer unique benefits for traders, but most projects fail to take advantage of the benefits of both options. A DEX, for example, has minimal regulatory oversight and lower fees. In addition, users maintain control over their digital assets. CEXs, however, are often easier to use, and transactions may be processed more quickly. IDEX is a hybrid network that offers key advantages of both centralized and decentralized exchanges for users to benefit.

Key Takeaways:

• IDEX is a perpetual futures DEX that features off-chain trading and on-chain transaction settlement. 
• IDEX is known for providing enhanced security, low fees, high performance and a user-friendly interface.
• Looking to trade IDEX tokens? Bybit now offers IDEXUSDT Perpetual Contracts for trading.

What Is IDEX?

IDEX stands apart from other perpetual futures DEXs with its hybrid structure. Because it runs on XCHAIN, a Layer 2 blockchain powered by Polygon’s zkEVM, IDEX’s trading fees are ultra low. IDEX offers instant trade execution with low latency. Failed transactions are guaranteed not to be an issue. In addition, all trades are settled on-chain so that users have full control of their assets and don’t need to expose their private keys to access external trading outlets. In addition, the network’s DApp integrations give users greater access to a wider range of services and products.

History of IDEX

IDEX is the brainchild of CEO Alex Wearn and COO Philip Wearn, and was launched in 2017 as a premier DEX for all traders. Its team also includes approximately 30 other talented professionals. In 2018, the IDEX network secured a key change when it introduced Know Your Customer (KYC) procedures in order to comply with anti-money laundering (AML) regulations and sanctions. This important change allowed IDEX to decentralize fund custody and gave users access to newer altcoins before they were listed on major exchanges. In August 2020, IDEX received $2.5 million in funding from Borderless Capital, Collider, Gnosis and G1 Ventures. 

What Does IDEX Aim to Achieve?

IDEX’s founders and developers have worked tirelessly to establish and perfect a high-performance decentralized exchange. They’ve focused on giving users the ability to execute trades efficiently, without concern for failed transactions. At the same time, their attention has centered on incorporating the security and transparency of a DEX. Because of their efforts, IDEX’s developers have created a system to decentralize fund custody, optimize latency, execute trades immediately and settle transactions without gas fees.

How Does IDEX Work?

IDEX utilizes an automated market maker (AMM) but stands apart from other DEXs due to its use of hybrid liquidity. This ensures that failed transactions aren’t problematic, while also facilitating fast transactions and lower fees. BNB Chain, Polkadot and Ethereum are supported by IDEX. 

As is true of many other decentralized exchanges, IDEX connects users to hundreds of different cryptocurrencies, while charging minimal trading fees.

High-Performance Exchange

IDEX’s high-performance exchange uses an AMM that secures real-time trades with liquidity pools. Specifically, users can deposit their preferred token pairs using smart contracts. The order requests then draw from liquidity pools for instant trade execution. In addition to its use of hybrid liquidity and smart contracts, IDEX supports the use of advanced trading strategies.

Hybrid Liquidity

As with trades on other DEXs, IDEX trades are executed with funds from liquidity pools. However, they can also be executed using traditional order books. Because IDEX employs order books and liquidity pools, failed transactions are rendered moot and fees are reduced. IDEX fully supports limit order liquidity with the lowest fees, which in turn supports instant trade execution.

Smart Contract Fees

A transaction fee is charged to users to complete trades on smart contracts, and the fees related to trades, withdrawals and other sub-actions are taken from the account balance.

Features of IDEX

IDEX stands out from other decentralized exchanges with its hybrid structure to support a superior trading experience. In addition, several other features enable IDEX users to generate income from their participation with the network. 

Liquidity Mining

Users are encouraged to provide liquidity to the IDEX liquidity pools with the incentive of LP tokens. There are two farming options available. The first is a single reward farm, which enables users to stake their tokens over a range of reward multipliers to suit their goals. The second is a dual reward farm, which pays market maker rewards in multiple tokens.

Staking

On IDEX, users can generate passive income by staking their IDEX tokens. Specifically, they can operate their own staking node or delegate their tokens to another node. The staking reward is 50% of the trading fees collected. Stakers receive their rewards in the form of USDC.

Additionally, users can operate replicator nodes by staking 10,000 IDEX or more. With this feature, IDEX employs order books in real time, allowing researchers, traders and market makers to receive advanced API data.

Referral Program

IDEX users are incentivized to contribute to the growth of the network through the referral program. To make a referral, users can access their unique referral URL found via the Rewards → Referrals tab. New users can manually enter this referral code when attaching their wallet for the first time. The referral reward is paid in USDC, and equals 80% of the new user’s protocol fees for a limited period of time. In addition, referred users can take advantage of discounted trading fees for a limited time.

Hummingbot

Hummingbot is an independent, open-source product that simplifies the process of operating a trading bot and taking advantage of AMM opportunities. It’s well-suited for those of all skill levels. Hummingbot can be operated on both a secondary exchange and IDEX using an arbitrage trading strategy to optimize profitability from trades.

XCHAIN

XCHAIN is a Layer 2 system that works on Polygon’s zkEVM, a zero-knowledge scaling solution. XCHAIN offers the full security of Ethereum and uses zero-knowledge proofs, so it has faster transaction processing times and lower fees and is capital-efficient.

IDEX Road Map

When IDEX launched in 2017, its purpose was to elevate the DEX user experience by integrating centralized exchange benefits. In 2023, Version 4 of IDEX was released to further advance the developers’ efforts to deliver the benefits of both CEXs and DEXs. 

IDEX Tokenomics

IDEX is the native token of the IDEX network. The token can be farmed on dual rewards farms wher they pay staking rewards in multiple tokens. The total supply of IDEX tokens is one billion, and the circulating supply is roughly 761 million.

IDEX Price Prediction

As of Aug 17, 2023, the IDEX token price is $0.047, down 4.2% off of the 24-hour high. The 24-hour trading volume is approximately $4.5 million, an increase of 4.2% over the last 24 hours. IDEX’s market cap is $36.3 million. The all-time high (ATH) IDEX token price of $0.937763 on Sep 8, 2021 was 94.91% higher than today’s price, while the ATL of $0.00563813 on Mar 23, 2020 was 746.18% lower than today’s price.

According to experts at AMBCrypto, IDEX’s price will decrease to $0.013 by the end of 2023, but will increase to $0.085 by 2025, $0.13 in 2027 and $0.26 in 2030. Looking farther ahead, they project IDEX’s price at $0.40 in 2032 and $0.63 in 2034.

Analysts at PricePrediction have an even more positive long-term outlook, forecasting IDEX at $0.065 by the end of 2023, $0.14 in 2025, $0.29 in 2027, $0.92 in 2030 and $1.90 in 2032.

Where to Buy IDEX (IDEX)

Looking to trade IDEX tokens? Bybit now offers IDEXUSDT Perpetual Contracts for trading. To get started, click on the Sign Up button on the top right section of the Bybit home page (or click here) and fund your new account with cryptocurrency. Then, navigate to the IDEXUSDT Perpetual Contracts page to start trading.

Is IDEX a Good Investment?

All cryptocurrency investments should be made cautiously and after individual research. While there may be considerable upside to a long-term hold strategy for IDEX tokens, price fluctuations over short periods of time could be substantial, as is true with any cryptocurrency. However, while holding your tokens, you can also earn market maker rewards or staking rewards on IDEX.

Closing Thoughts

IDEX offers an exceptional trading experience with the benefits of both decentralized and centralized exchanges. In addition, users can take advantage of referral rewards, market maker rewards and staking rewards. As a result, this network is poised for growth, and it could elevate your trading experience in exciting ways.

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