IDEX is a hybrid liquidity decentralized exchange built on the Ethereum blockchain. The protocol was founded in 2018. It is registered in Panama and headquartered in the United States. The Platform enables users to trade cryptocurrency.
IDEX crypto exchange requires KYC compliance for daily withdrawals exceeding 5,000 USD. Such users must verify their identity by uploading their ID with a selfie. IDEX allows users to trade from any country in the world. However, the platform limits access to certain assets for some countries including the United States, as a commitment to compliance and security. IDEX is accessible on the web.
IDEX is a hybrid model of a decentralized exchange, combining a high-performance order book with Automated Market Making (AMM). Though it brands itself as a decentralized platform, IDEX cryptocurrency exchange has characteristics of centralized exchanges such as off-chain order books and order matching.
IDEX enables users instant buy and selling of digital assets. IDEX spot trading resources include TradingView charting software. IDEX trading pairs are majorly ERC-20 tokens. The exchange also supports stablecoins such as DAI, USDC, TUSD, and PAX. However, the IDEX crypto exchange does not support some popular cryptocurrencies such as Bitcoin (BTC) and Litecoin (LTC).
The exchange uses two native tokens to maintain the sustainability and growth of the network’s ecosystem. IDEX is the proof-of-stake utility token of the platform. It is used for rewarding the platform users. Additionally, IDEX holders can stake the token to earn fees generated from the network. Rewards are distributed on an automatic basis. IDEX crypto price is available on the live chart. IDXM, on the other hand, is a membership token that enables the holders to enjoy several benefits on the protocol such as discounts on trading fees.
IDEX cryptocurrency exchange supports diverse trading options including limit and market orders, gas-free cancels, and the ability to file multiple trades simultaneously. Moreover, IDEX supports low-latency trade execution and advanced order types. The platform’s matching engine can process hundreds of thousands of orders per second. Such features help the platform to attract and maintain more liquidity.
Combining the order book model with an automated market maker gives the platform features of a traditional order book while leveraging the liquidity and security of AMM. The exchange uses smart contracts to decentralize fund custody and trade settlement. The smart contract triggers off-chain trade execution and on-chain settlement to enable the order book model. The platform also uses an on-chain trade settlement and off-chain trading engine to reduce the gas fee and ensure fewer transaction failures.
The protocol offers a standard taker fee of 0.25% for all IDEX trade pairs. The entire 0.25% taker fee is collected as protocol fees when taking pool liquidity. However, when taking pool liquidity, only a 0.05% fee is collected as a protocol fee. The remaining 0.20% of IDEX crypto fees are sent to the pool to compensate liquidity providers. The trading fee for makers is 0.1%.
The withdrawal requirement is 0.04 ETH or its equivalent in listed tokens. There is no minimum deposit amount. The platform computes withdrawal fees based on the current gas price and deducts it from the amount withdrawn to the wallet.
IDEX enables users to stake IDEX tokens to run IDEXd staking software to sustain the network. Stakers earn 50% of the total IDEX exchange fees.
Also, IDEX crypto exchange has integrated with Hummingbot to enable the easy running of a trading bot and capitalize on AMM arbitrage opportunities. Hummingbot is open-source software that enables users to run customizable trading strategies. The software has built-in strategies suitable for novice traders. It also contains robust features that enable experts to customize and redefine their trading. The software features arbitrage trading as one of the standard configurations.
Moreover, IDEX has also integrated Ledger Nano S and MetaMask wallets on the trading platform to enable easy and secure management of funds.
Furthermore, IDEX offers an API service that enables access to the protocol’s data. Users can easily integrate their existing trading software through a familiar interface.
Lastly, IDEX provides an effective Launchpad that enables users to seed liquidity and kick-start their projects. They can also build momentum as they attract more advanced traders and market participants.
About the Company
IDEX cryptocurrency exchange launched in 2017. The platform was founded by Alex and Phil Wearn. It is headquartered in the United States.
In January 2019, IDEX started developing IDEX 2.0, an improved version of the exchange that combines CEX features with the security of a DEX. The new version went live in the fourth quarter of 2020 after following a $2.5 million seed round investment.
In July 2020, IDEX volume spiked, crossing $4 billion. It entered the top three leaders of the DEX market, joining Curve and Uniswap.
In December 2021, the project launched IDEX V3, an upgrade to the previous version of the protocol. The new version combines AMM, Order Book, and Trading Engine to give users a new experience with liquidity pools. It also has a more advanced mapping system. IDEX V3 has many benefits for both traders and liquidity providers. Some benefits include instant trade execution, better pricing, advanced order types, strong incentives, and higher liquidity provider (LP) APY.
In 2022, the total IDEX trade volume crossed $3 billion.
The two co-founders, Alex and Phil Wearn previously worked for reputable companies such as Amazon, Adobe, and IBM.