IDEX, the popular hybrid decentralized cryptocurrency exchange platform, introduced today more details on the upcoming release of ‘IDEX 2.0.’ The new version of IDEX is a comprehensive rebuild of the company’s hybrid exchange and includes a new UI/UX, off-chain matching engine, and layer-2 smart contract settlement system.
A full-featured testnet version of IDEX 2.0 will be available before the end of this year. While the IDEX team estimates that once proper testing has been concluded, the exchange will be ready to go live on mainnet targeting a launch of Q1 2020.
The new client build is fully functional, and the development process is now underway to adapt the build for mobile and other devices.
“IDEX 1.0 remains one of the most successful Ethereum DApps, consistently capturing upwards of 50% of all Ethereum DEX traffic. But this success comes at a cost—more specifically the direct cost of using the Ethereum network. In 2018 IDEX traders paid over $4.3M to the network to settle trades, and the contract consumed over 1% of the Ethereum network capacity on peak days. The IDEX contract has grown to become the largest contract state on the entire blockchain, an additional and increasing cost to the public. It’s time for this to change.”
– The IDEX Team
The IDEX 2.0 design uses an application-specific layer-2 solution, and Optimized Optimistic Rollup (O2 Rollup). O2 Rollup is a generalizable pattern for deploying high-throughput applications, and it works today without the use of any proprietary technology.
O2 Rollup correctness is enforced by the IDEX staking validator network. All aspects of the system are cryptographically provable, with transparent rules that aren’t subject to majority consensus, and it includes a unique solution to the hardest problem of layer-2, data availability.
O2 Rollup, combined with IDEX’s intelligent off-chain matching system, allows IDEX 2.0 to:
- Eliminate all gas costs for settling trades to the Ethereum network
- Introduce a true order matching system that eliminates coordination problems found on IDEX 1.0 and other DEXs (known by the community as “the bot problem”)
- Enable new order types, such as stop-loss, and other advanced trading options
- Offer traders and institutions a high-trust, secure transaction environment with throughput capacity matching centralized competitors
02 on IDEX
- O2 Rollup helps address the high gas costs and congestion present in current generation blockchain solutions
- O2 Rollup scales indefinitely, settling an infinite number of trades in one single transaction
- Transactions are settled every few minutes via a Merkle root proof
- IDEX validator nodes cryptographically enforce the correctness of the Merkle root settlement
For more information on the IDEX 2.0 non-custodial exchange solution see the new whitepaper.