IDEX is a hybrid model of a decentralized exchange based on Ethereum that was founded in 2018. Though the resource brands itself as a decentralized platform it has several characteristics that are found in centralized exchanges such as off-chain order books and order matching.
The exchange with over 270 listed ERC20 trading markets has over 100,000 verified accounts. In July 2020, the DEX volume soared and surpassed 4 billion USD, hitting a new all-time high. IDEX enters the top three leaders of the DEX market after Curve and Uniswap.
The goal of the team is to turn the resource into the best Ethereum DEX with the most advanced technologies. The platform aims to attract traders who deal with a lot of cryptocurrencies in their transactions. The website of the company mentions high transaction throughput as one of its benefits.
The platform leverages the advantages of smart contracts that can be employed by users to manage their private keys or those who need to trade on a P2P basis in a safe environment.
US-headquartered company IDEX is registered in Panama. It belongs to AuroraDAO and gives the opportunity to trade from any country in the world.
IDEX is a part of the Aurora project that presents a collection of Ethereum apps and protocols making up a decentralized banking and finance platform. Thus, Aurora includes the IDEX exchange, the Snowglobe decentralized exchange protocol, the Boreal stable currency, the Decentralized Capital, which is a digital banking solution for the crypto community.
The exchange is suitable mainly for advanced traders and ERC20-focused traders. The minimal trading volume per trade is rather high: 0.15 ETH or its equivalent in other tokens for takers, and 0.05 ETH for makers. The platform employs TradingView charting software offering spot trading for its users. The major stablecoins listed include USDC, TUSD, PAX, and DAI. The exchange doesn’t work with such popular cryptocurrencies as BTC, ETH, LTC, and XLR. However, it’s possible to trade OmiseGO, AuroraDAO, Metal, EOS, and Storj.
The functionality supports diverse trading options such as limit and market orders, gas-free cancels, and the capability of filling many trades simultaneously. The integration of Ledger Nano S and MetaMask wallets on the trading platform enables the secure management of funds. This is a more effective way of secure management in comparison with the manual entering of the private key. It should also be mentioned that the exchange is non-custodial. It means that the exchange doesn’t keep the assets of users unless they give cryptographic permission for this.
In January 2019, the company started developing an improved version of the exchange IDEX 2.0 that combines the performance of a centralized exchange with the security of a DEX. At the time of writing, the company tries to launch it. In the opinion of the project’s CEO, a new platform has a competitive edge over other leaders of the DEX market as it introduces the same functionality and UI of centralized exchanges staying non-custodial at the same time, while the current market leaders (Uniswap) offer rather limited functionality without orderbooks. IDEX employs off-chain order books and order matching relying on a centralized server to complete.
The team has developed the tools for low latency trade execution and advanced order types. The matching engine of the exchange can process “hundreds of thousands of orders per second”, as IDEX CEO says. In this way, the company tries to attract more liquidity to its platform.
The exchange tries to motivate the members of the community through token incentives. IDXM and IDEX are two native tokens of the exchange supporting the system. IDEX is the Proof-of-Stake utility token of the platform that is used for rewarding. It can be staked to earn fees that can be spent on secure components of the decentralized architecture. IDEX trading rewards are distributed on an automatic basis. The amount of distribution depends upon the trading amount.
IDXM is a kind of membership token that gives holders the ability to reduce the trading fees and get other benefits on the exchange. It is possible to get zero trading fees, for instance, or to double IDEX trading rewards.
On August 7, 2020, IDEX raised 2.5 million USD in seed funding. The leading investors were G1 Ventures and Borderless Capital. The list of participants also included Collider Ventures and project Gnosis.
The trading fees are 0.1% for makers and 0.2% for takers for the level 1 users. The minimum withdrawal requirement is 0.04 ETH or its equivalent in listed tokens. As for a deposit, there is no minimum requirement.
The platform employs smart contracts to develop an instrument for easier management of private keys. Users should be KYC-compliant for withdrawals that exceed 5,000 USD a day. Those who want to withdraw more should upload their ID with a selfie to complete KYC.
IDEX customer service
It’s possible to contact the customer service via email, live chat, and Discord. The employees of the support team are known for their friendly attitude and respond rather fast. Additionally, there is a detailed FAQ section that addresses the most common questions. Those who are new to the platform can take advantage of the clearly written guides that help to navigate the trading platform easily.
The team of cryptocurrency enthusiasts stands behind the platform along with Aurora Labs S.A., a Panama-based company. CEO Alex Wearn holds an MBA in Finance and Operations and an MS in Design and Innovation from Northwestern’s Kellogg School of Management. Alex Wearn heads both Aurora’s and IDEX teams.
It is also worth noting other important figures of the project such as Phil Wearn, COO, and a co-founder of EtherEx with a background in aerospace engineering, and Jason Ahmad, CTO, who previously founded the company Epoxy and successfully sold it in 2016.