IDEX Announces Hybrid Liquidity Pools To Tackle Slippage And Front Running In DeFi
IDEX Hybrid Liquidity combines an order book and trading engine with liquidity pools of automated market makers (AMMs)
IDEX, a high-performance decentralized exchange, has announced the unveiling of IDEX Hybrid Liquidity (IDEX HL). IDEX HL combines order book and trading engines with liquidity pools of AMMs, protecting users from failed trades and front-running. It does this by executing trades against the best combinations of pooled liquidity and limit orders.
Challenges Of the DeFi Ecosystem
DeFi faces a serious problem when it comes to front-running and failed trades, with research indicating that between 2-5% of transactions on Ethereum based decentralized exchanges fail. These failures could be caused by several reasons, such as low gas prices and slippage.
In fact, the week starting from 15th April to 21st April saw 241,262 out of 1.1 million transactions on Uniswap fail. This represented the most significant number of failed transactions on the Ethereum network.
Mainstream Interest Making Things Complicated
Mainstream interest has gone on to exacerbate the problem, with a huge influx into the DeFi space. One recent incident is that of Mark Cuban, who revealed that 12.6% of his transactions on Ethereum had failed.
Alex Wearn, CEO of IDEX, commented.
“Despite the shortcomings limiting the scalability of the DeFi ecosystem, little has been done to mitigate front-running, sandwich attacks, and trade failures. With IDEX Hybrid Liquidity, we’ve finally eliminated these issues that have persisted in the DEX landscape.”
The IDEX Solution
IDEX enables any user to deposit funds and become a market maker by incorporating the liquidity pool structures that made AMMs popular. In addition, the pool integrates with IDEX’s high-performance trading engine, allowing for fair and real-time trade executions.
This eliminates trade failures and front-running while allowing higher returns for liquidity pool providers. CEO Alex Wearn further commented
“The IDEX Hybrid Liquidity Pool is the next evolution of the DEX; as we continue to explore innovative methods to deliver the most optimal trading experience for users, IDEX delivers the best of DEXs and centralized exchanges with the non-custodial elements and the ease of market-making through AMMs. By combining a high-performance trading engine with smart-contract-based custody and settlement, users get the best of both worlds.”
IDEX’s Binance Smart Chain Launch
The announcement about liquidity pools comes shortly after the launch of IDEX’s trading infrastructure on the Binance Smart Chain. The trading infrastructure on BSC will enable cost-effective and efficient DEX trading. It will also allow users to access new assets and reduce settlement costs.
Users that want to explore IDEX Hybrid Liquidity can do so by visiting idex.io.
IDEX combines the features and speed of a centralized exchange with the security of a decentralized exchange. It is the most advanced exchange in the world. IDEX ensures that it does not compromise on performance or security and makes it easy for market makers to integrate with their existing infrastructure, providing deep liquidity securely.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.