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Navigating the DEX Landscape: IDEX

Dec 7, 2019 | DEX

Decentralized exchanges are paving the way for a more accessible cryptocurrency ecosystem. All of the platforms currently active try to make a name for themselves. IDEX is by far the most-respected platform in the industry today, primarily because it checks a lot of the right boxes for its users.

The Aurora Project

Most users who familiarized themselves with IDEX over the years may not be aware that it is just one of the projects under the Aurora project umbrella. The Aurora project is a collection of applications and protocols running on top of the Ethereum blockchain. As Aurora is designed to decentralize finance in a meaningful manner, it is only normal they look beyond exchanges and trading. 

Other ventures under this umbrella include Decentralized Capital – a digital banking solution – and Boreal, a stable currency. There is also a decentralized exchange protocol by the name of Snowglobe, which is currently under development. All of these ventures are designed to merge finance with decentralization in a meaningful manner. 

The IDEX Platform

Given the broad focus of the Aurora project, many people were somewhat surprised to learn IDEX would be the team’s first major venture. It is a decentralized exchange designed to let users trade Ethereum and ERC-20 tokens at their own leisure. Even though many exchanges provide this functionality as well, IDEX aims to become a market leader sooner rather than later.

It has to be said, IDEX has been a very successful project from day one. In recent weeks, the overall trading volume per 24 hours has decreased somewhat, although it appears things are heading in the opposite direction once again. For now, the average volume over the past 90 days sits at roughly $500,000, which is well below what the exchange used to process during the early stages. Recovering from this dip should not pose any major challenges. 

Core Features and Security

The main selling point for IDEX is how it gives users a lot of control. ERC-20 Token holders can create their own trading pairs as they see fit, which allows for a lot of customization. Combined with the easy-to-use interface and the integration of TradingView charts, it is a very professional-looking platform. 

Under the hood, the IDEX trading occurs off-chain for the most part. More specifically, the platform utilizes an off-chain trading engine which runs alongside a smart contract on the Ethereum blockchain. The contract monitors all funding, trading, and settlement aspects of this trading platform. There is no delay when swapping between tokens, which makes it one of the fastest decentralized exchanges available today.

Any trading platform will stand or fall based on the different trading pairs customers can access. IDEX checks the right boxes here as well. At this time, there are over 100 different trading markets for users to choose from. Users can also benefit from “traditional” options such as limit and market orders. There is also an option to fill multiple orders in one go, a feature many customers have appreciated so far. 

To most users, the experience may be similar to dealing with a centralized exchange. IDEX Provides many features one would expect to see on such platforms. Once they sign off on a transfer, IDEX will manage the order books and account balance in real-time. This allows for a much higher trading throughput at a fraction of the cost. 

On the topic of security, there are plenty of countermeasures to keep funds safe. The native smart contract takes care of most aspects. Combined with the off-chain trading engine and a transaction processing arbiter, the entire experience is 100% trustless and decentralized. All private key information associated with using this platform is fully encrypted. When users log out, their private keys are destroyed immediately. Those traders who prefer to trade through a hardware wallet can add an extra layer of security to their trading experience.

Base Trading Pairs

Albeit IDEX initially began as a platform to trade ERC-20 tokens against Ethereum, the exchange has evolved. There are other base trading markets for most currencies today. That list includes DAI, TUSD, USDC, and EURS. Albeit not all supported tokens are available for every market, it shows the platform has a lot more to offer than meets the eye. It makes for a very appealing alternative experience to centralized exchanges.

Trading Fees and Minimum Orders

Despite being decentralized, IDEX still introduces some aspects of a centralized trading platform. That includes maker and taker fees, which are set at 0.1% and 0.2% respectively. Market takers are also responsible for paying gas transaction costs. On the other hand, users can cancel outstanding orders without paying a gas fee. Being able to cancel orders without extra costs is another big selling point of this platform. 

The team also opted to put minimum order thresholds in place. Market makers have to contend with a $20 minimum order limit. For market takers, that threshold sits at just $10. Anyone looking to withdraw funds will need to have a balance of at least $1. 

Images courtesy of their respective sources.

Fintoism is not providing financial or investment advice. All content published on this platform is for entertainment and educational purposes only.

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<a href="https://fintoism.com/author/oglock/" target="_self">JP Buntinx</a>

JP Buntinx

JP Buntinx is passionate about cryptocurrencies, fintech, blockchain, and finance. He currently resides in Belgium.

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