World’s First Hybrid Liquidity DEX Eyes Competition Against AMM, Order Books
IDEX, a leading decentralized cryptocurrency exchange (DEX), has announced that its v3 Hybrid Liquidity DEX generated more than $100 million USD in trade volume in its first two weeks. At the time of writing, over 30,000 unique wallets have already traded on the Polygon-based DEX since its launch on December 1, 2021. As the world’s first hybrid liquidity DEX, the novel exchange aimed to cement hybrid liquidity as a true competitor to the automated market maker (AMM) and order book designs which left DeFi traders vulnerable to front-running, slippage, sandwich attacks, and exorbitant gas fees.
According to analytics firm, Chainalysis, decentralized exchange trading volume surged by 550% in 2021 alone despite the glaring pitfalls within DeFi, including failed transactions, front-running, and maximal extractable value (MEV) attacks. In response, IDEX launched v3 Hybrid Liquidity to deliver traders the most popular features of centralized exchanges (CEX) and DEXs, like a high-performance order book and the liquidity of AMM pools, without sacrificing security.
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Through the first two weeks since launch, IDEX v3 accumulated more than $100 million in trade volume, and a TVL north of $30 million. Additionally, IDEX facilitated nearly 350,000 trades over this two-week span, without sacrificing one failed trade. By comparison, fellow Polygon-based DEX, QuickSwap, broke the $1 million TVL mark for the first time in January 2021, despite launching three months prior in October 2020. Given the unprecedented trade volume on v3, IDEX anticipates that the Hybrid Liquidity design will offer DeFi traders a desirable alternative to the incumbent AMM and order book designs.
“DeFi has seen incredible growth over the past year, and still has immense potential to expand,” said Alex Wearn, CEO of IDEX. “For DeFi to realize its potential, it needs to protect its users from the persistent failures within the space. The usage of IDEX v3 indicates that DeFi traders are excited to trade in a hybrid environment without the fear of failed transactions. We believe this DEX model will be a catalyst for further DEX development across the ecosystem as we catapult DeFi to the next level.”
The exponential year-over-year growth of the Polygon Network made it a clear candidate on which to launch the v3 DEX. Polygon has found success making transactions quicker, more affordable, and more reliable than Ethereum mainnet, which propelled its adoption rate. In a single year, Polygon has grown from 30 dApps to nearly 3000 as its Layer-2 solution effectively solved Ethereum’s high gas fee issues. Since May 16, 2021, the Polygon Network has consistently maintained a TVL of more than $3 billion — highlighting the sustained success of the platform. Compared against popular smart contract platform, Avalanche, Polygon processes approximately 4x more daily transactions than Avalanche, while Polygon users pay less than one third of the total transaction fees to execute substantially more transactions than on Avalanche. IDEX anticipates that its v3 Hybrid Liquidity deployment on Polygon will prove to generate the highest possible returns for traders.
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“Our goal has always been to grow the decentralized economy,” continued Wearn. “Given the growth and success of the Polygon network, we felt that it was the ideal platform to launch v3. We’re so excited to witness Hybrid Liquidity become a staple in DeFi, and, more importantly, how it safeguards traders against the existing pitfalls.”
Following the IDEX Hybrid Liquidity Mainnet launch, the native IDEX token, $IDEX, was listed on multiple cryptocurrency exchanges: Coinbase and Huobi. In the coming months, IDEX plans to explore additional networks to deliver its novel DEX features.
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