What Is Idex (IDEX)?
Idex claims to be the first hybrid liquidity DEX that combines an order book model with an automated market maker. It blends the performance and features of a traditional order book model with the security and liquidity of an AMM. Idex takes an innovative approach to decentralized exchanges by combining an off-chain trading engine with on-chain trade settlement. Users benefit from that in several ways.
First, this approach does away with failed trades and wasted money on gas fees, making the trading experience more pleasant and efficient. The instant trade execution means front-running or sandwich attacks are not possible and users can trade without waiting for previous trades to settle. As a result, more advanced order types and trading strategies can be executed since limit orders are possible, opening up arbitrage opportunities with other exchanges.
Idex follows an ambitious roadmap that envisions a multi-chain future for the exchange, which currently runs on Ethereum and Binance Smart Chain. For the remainder of 2021, it plans to launch on second layer solutions and Polkadot and implement a referral. For the future, Idex plans to implement leverage trading and launch on additional layer one and layer two blockchains.
Who Are The Founders of IDEX? (History Of IDEX)
IDEX was originally founded and developed in 2017 under the brand Aurora. The project was co-founded by Alex Wearn and Philip Wearn, who is the co-founder of EtherEx. Aurora rebranded to IDEX in 2019 with the idea of creating and developing the first real-time non-custodial exchange that combines a centralized system for matching orders and decentralization.
Alex Wearn is the CEO of IDEX and has a colorful background in software development with previous management roles at Amazon, IBM, and Adobe. The idea behind the project is to enable users to access banking and financial tools and features for instant exchanging of cryptos across multiple platforms such as Ethereum, Binance Smart Chain, Polkadot, and more upcoming integrations.
How Does IDEX Work?
IDEX functions as an order book exchange while the project combines elements of centralized and decentralized exchanges to facilitate greater speeds for executing transactions on the ledger. The majority of DEX platforms in the market are AMMs, while IDEX uses order books and centralizes the system used for matching orders on the network.
For maximum functionality and speed on Ethereum, IDEX uses Layer-2 Optimistic Rollups. The Optimistic Rollup is a solution for scaling that uses greater speeds in processing transactions off-chain while retaining the decentralized model of the mainnet, in this case, IDEX. Ethereum users can experience congestion issues when the network is busy, which is when gas prices increase and using Ethereum becomes expensive. That is why Ethereum is slowly transitioning to the Proof of Stake consensus mechanism with the upcoming Ethereum 2.0 upgrade.
What Is IDEX Crypto And Why Is It Rising?
Idex is a hybrid liquidity decentralized exchange (DEX) that functions as an order book and an automated market maker (AMM). It claims to be the first to combine the features of a traditional order book with the security and liquidity of the automated market maker.
It brought a unique approach to the decentralized exchange (DEX) functions by combining the off-chain trading engine with the on-chain trade settlement, which provides users various benefits.
For instance, the approach eliminates failed trades and the waste of money on gas fees. It claims to offer users an efficient trading experience. Its instant trade execution implies that users can continue their trading without waiting for the previous trades to settle.
It claims that advanced order types and trading strategies can be executed through this approach, as limit orders are possible while opening up arbitrage scope with other exchanges.
Its recent gains may have been driven by social media discussions about the token.
It recently announced to start working on a decentralized perpetual swaps exchange, IDEX v4. The project’s infrastructure is “perfectly aligned” with the traders’ requirements, which is a high-performance derivative DEX, it said. It also provided a four-to-eight month timeline for the development of IDEX v4.
The Ultimate DEX
What Problems Does IDEX (IDEX) Solve?
IDEX is a revolutionary decentralized exchange that currently runs on Ethereum and BSC. Let’s take a look at some of the solutions that it brought to the decentralized finance sector.
The first hybrid liquidity DEX
As mentioned, IDEX is the first hybrid liquidity DEX, which means that it combines the automated market maker of DEXes with the order book model that centralized exchanges are using. As a result, it blends the performance and features of CEXes with the decentralization, security, and liquidity of an AMM. The result is the new model of DEXes that might become a standard for future decentralized trading platforms.
Combines an off-chain trading engine with on-chain trade settlements
IDEX takes an innovative approach to run a DEX by combining an off-chain trading engine with an on-chain trade settlement. This ensures a number of benefits, such as faster settlements but without overloading the chain.
As mentioned, IDEX already runs on Ethereum and Binance Smart Chain, with plans to launch on second-layer solutions and Polkadot in the future. The timeline for additional expansions was not offered yet, but IDEX has been rather open with the intention to expand, so we know that it is coming at some point in the future.
Benefits Of IDEX (IDEX)
Next, let’s discuss the benefits that IDEX can offer to its users. There are several that come as a direct consequence of its solutions, such as:
Execute more advanced order types
Thanks to the fact that IDEX can offer instant trade executions, the project can also offer more advanced order types and trading strategies for its users. This is possible since instant trade executions open the door for things like limit orders, arbitrage opportunities with other exchanges, and alike.
Plans to add leverage trading
Another important detail about IDEX is that it plans to continue improving its service by adding new services and features. For example, the exchange said that it plans to add trading with leverage at some point.
Eliminates unnecessary network costs
IDEX takes a rather unique approach to combining an AMM with an order book model, as mentioned, and it uses an off-chain trading engine that matches the performance of CEXes and guarantees sequencing. Trades are then processed in an off-chain order book, and so only when a trade is matched and fully executed does the transaction get settled on the blockchain. This means that users do not have to pay extra costs for placing and canceling orders, as all of that takes place off-chain.
Finally, it is also important to note that the automated market maker guarantees liquidity by displaying virtual limit orders in its order book, alongside real limit orders. This visualizes AMM liquidity in the order book model, and orders get settled as AMM-only, or as a hybrid between the limit order liquidity and the AMM.
IDEX Exchange is part of a finance and banking entity named Aurora Project based in Panama. Led by Alex Wearn, IDEX Exchange was introduced in 2012 as it raised 5411.38 ETH on its debut. With its upgraded version, which was released soon after its introduction, IDEX Exchange trades exclusively in Ethereum and ERC20 tokens, and they are available across the Ethereum chain for digital currency.
Some of the main features of IDEX Exchange are as below:-
- Security and transparency.
- Cryptocurrency-based funds transfer.
- Ethereum and Binance smart chain support.
- Peer-to-peer trading.
- Reliable customer support.
- Variety of trading options.
- Confirmation before deposit processing.
IDEX Exchange also supports various other tokens such as Celsius, Everex, Quant, Etherbase Coin, Flexacoin, Fantom, Chainlink, to name a few. This crypto trading platform also supports Aura tokens that enable account users to choose to stake and support the IDEXD trading network.
How Many Idex (IDEX) Coins Are There In Circulation?
The total supply of IDEX is 1 billion IDEX. The token distribution is as follows:
40% – market maker rewards, marketing campaigns, and airdrops
10% – IDEX members
25% – team
10% – future employee token pool
10% – future use
5% – business expenses
Users can also run a lightweight node and stake their IDEX if they have a minimum of 10,000 IDEX.
What Makes IDEX Unique?
The majority of DEX platforms use automated market maker models to execute buy and sell orders, while IDEX employs order books with a centralized system for matching orders. Centralization within this system is achieved to ensure instant execution and fast processing of all off-chain transactions.
IDEX offers guaranteed execution of trades and low latency, while the software represents a unique combination of centralized and decentralized elements used in the system. Due to its unique approach to sourcing exchange services, IDEX is the first decentralized exchange of its kind while offering full custody of funds to users. Advanced order types, staking with an automated reward system, and a user-friendly UI make IDEX a unique and valuable project in the sector of DeFi and the broader industry.
How Is The IDEX Network Secured?
The IDEX network secures users’ funds via smart contracts instead of relying on the questionable security of centralized entities as in the case of centralized exchanges. The network also communicates through external data, i.e. IDEX connects to networks like Ethereum and Binance Smart Chain, requiring oracles for an added layer of security.
The network uses an automated system for incentivizing Node operators. Node operators validate transactions and other operations on the network, for which they are rewarded as integral network participants. IDEX, the utility token, is used for securing the protocol through staking as Node operators need to stake IDEX to operate the network.
How to Choose an IDEX Wallet?
IDEX can be stored on the IDEX platform where it can be used for staking. There are plenty of other places you could store your IDEX and the type of wallet you choose will likely depend on how much you need to store and what you intend to do with it.
Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical knowledge and are a more expensive option. As such, they may be better suited to storing larger amounts of IDEX for more experienced users.
Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of IDEX or more novice users.
Online wallets or web wallets are also free and easy to use, and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your IDEX, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.
Kriptomat offers a secure storage solution, allowing you to both store and trade your IDEX tokens without hassle. Storing your IDEX with Kriptomat provides you with enterprise-grade security and user-friendly functionality.
Buying and selling IDEX, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.
|Highly secure and encrypted trading.||Users can’t trade in Bitcoins.|
|Staking program for stakers with rewards to earn.||Beginners can find trading in crypto challenges.|
|Crypto-to-crypto payments can be made quickly.||Requires a variety of other digital currency support.|
|Supports Ethereum and Binance smart chain.|
|Trade makers and takers can earn rewards on aurora utility tokens.|
|Reliable customer support.|
|Metamask wallet integrated.|
|User-friendly UI for easy trading and fund management.|
IDEX Price Prediction
Most forecasts are fairly bullish over IDEX, and suggest it will eventually reach a new all-time high.
WalletInvestor’s IDEX crypto price prediction says IDEX is an “awesome” long term investment and will reach $0.17 in a year. IDEX is expected to hit $0.40 in May 2025, according to its IDEX price prediction for 2025, and reach the $0.63 mark in May 2027.
PricePrediction.net is also optimistic about the potential of IDEX. While its IDEX price prediction for 2022 only expects an average price of $0.056, the site believes it can reach $0.83 in 2029 and $1.19 in 2030.
Gov.capital‘s IDEX coin price prediction thinks the token can reach $0.191 by the end of this year and $0.89 in early 2025. It also says IDEX could be trading at just under $2.06 in five years’ time.
Meanwhile, DigitalCoinPrice is more reserved over its prediction. An average price of $0.14 is forecasted for 2022, and just $0.21 for 2025. Its IDEX price prediction for 2030 is $0.49.
IDEX has demonstrated in the past that its token is capable of reeling in huge demand, and most predictions expect it do so again. But IDEX has been stuck in a bearish rut since September 2021.
Currently it is down over 88% from its all-time high. The staking token will need substantial momentum from investors before it will see that high price surge again.