First-of-its-kind DEX Offers Haven From L1 Failed Transactions, Front-Running & Slippage
IDEX, a leading decentralized cryptocurrency exchange (DEX), has announced the launch of its v3 Hybrid Liquidity DEX on Polygon. The launch of the world’s first hybrid liquidity DEX aims to alleviate 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. The innovative exchange design offers crypto traders a unique trading experience with the familiar features of centralized exchanges (CEX) and DEXs, including a high-performance order book, improved security, and the liquidity of AMM pools.
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DeFi continues to grow exponentially, with the total value locked (TVL) in DeFi protocols increasing from $21.6 billion in January 2021 to $256.91 billion today — representing a 1,089.4% spike. However, little has been done to address persistent issues plaguing the DeFi ecosystem, including failed transactions, front-running, and miner extractable value (MEV). Popular Ethereum-based DEX, Uniswap, recently publicized a reduction in failed transactions across its platform from 11% down to 6%. However, this week alone, Uniswap users still suffered from more than 100,000 failed transactions, highlighting the severity of this problem. Adding insult to injury, MEV remains a massive problem within the DeFi ecosystem, as more than $750 million has been extracted on Ethereum — most of which can be attributed to arbitrage transactions.
The current bull run generated a record $23.6 billion in trading volume in September, but surging gas prices still cost traders an average of $69.1 million each week on the Ethereum network. The launch of v3 Hybrid Liquidity looks to deliver traders the most popular elements of both CEXs and DEXs with settlement costs 10,000-100,000x cheaper than on Ethereum L1.
“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,” said Alex Wearn, CEO of IDEX. “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.”
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IDEX v3 Hybrid Liquidity combines an order book and automated market maker (AMM) liquidity pools to protect users from AMM pitfalls by instantly executing trades against the best combination of limit orders and pooled liquidity. This approach generates higher returns for liquidity providers, allows for advanced trades like stop-loss and limit orders, and fair, real-time trade execution.
“We are excited to assist IDEX launch its platform on Polygon, and believe it will serve as a catalyst for decentralized applications building on our network,” commented Hamzah Khan, DeFi Lead at Polygon. “IDEX takes an innovative approach to resolve issues such as front-running and failed trades, which helps drive significant value for traders.”
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