IDEX v4: The chad perpetual exchange

IDEX is the first hybrid liquidity Decentralized Exchange (DEX) that provides a high-performance order book and matching engine blended with Automated Market Making (AMM) security and liquidity. The platform operates in a way that is similar to top centralized exchanges, providing traders with the speed and efficiency that is typically unavailable from other DEXs.

IDEX Hybrid Liquidity (IDEX HL) is a cutting-edge DEX that combines the best of both traditional order book exchanges and AMM liquidity pools. It provides traders with a seamless, low-cost execution experience by automatically matching them with the best combination of limit orders from other users and AMM liquidity.

IDEX HL utilizes a high-performance matching engine that executes trades in real-time, with advanced order types that enable traders to implement sophisticated trading strategies. This hybrid execution model provides users with tight spreads and always-on liquidity, even for long-tail markets, without the complexity and expense of a traditional market maker. Additionally, users can also passively provide liquidity and earn returns.

The order placement and trading interface for IDEX HL is the same as a standard limit order exchange, both on the web and via the API. A swap UI is also provided as a convenience for users. With IDEX HL, traders can enjoy the benefits of traditional order book exchanges and AMM liquidity pools, making it a powerful solution for decentralized trading.

The heart of the platform is the trading engine, which operates off-chain and can process tens of thousands of orders per second with millisecond latency. This performance level is achieved by guaranteeing sequence and executing orders in the precise order the server receives. In contrast, most DEXs execute trades on-chain, leading to low throughput and high latency associated with blockchain transactions and non-deterministic ordering, with miners deciding which transactions are included and in what order.

The IDEX trading engine provides a responsive user experience and protects users from failed trades, front-running, and sandwich attacks that plague on-chain DEXs. The engine is paired with an off-chain order book, which minimizes gas costs and maximizes the benefits of the trading engine. Orders on IDEX are represented by signed transactions that include the price and amount, among other parameters. When orders match, a trade is executed, and both traders' balances update in real-time, allowing them to continue trading immediately.

On-chain transactions only occur during the settlement of a matched trade, freeing users to place and cancel orders as frequently as they like without incurring additional network costs. Order placements and cancellations are processed in real-time, enabling more advanced market-making and trading strategies.

IDEX seems better than other orderbook-based DEXs because it provides traders with the security and decentralization of decentralized exchanges, combined with the speed, efficiency, and advanced features of centralized exchanges.

Security is essential to IDEX. The off-chain trading engine in IDEX executes trades instantly before dispatching them to the Ethereum network for settlement. To ensure that the funds for both the maker and taker do not move on-chain during this process, the smart contract acts as escrow, restricting the movement of funds until all settlements have finished. The smart contract also sequences all trades and withdrawals to update on-chain balances in the correct order. It includes a particular function, “wallet exit,” to ensure that funds cannot be restricted indefinitely.

In centralized order book exchanges, users must trust that the exchange will match and settle trades properly, maintain custody, and process valid withdrawals. However, IDEX's smart contracts cryptographically enforce ownership and authorization, ensuring that the owner authorizes all trades and that withdrawals are legitimate and only sent to the account owner.

The smart contracts also enforce the rules of the AMM liquidity pools, allowing users to market make without needing a third-party or additional infrastructure. This adds an extra layer of security and reliability, as all trades and withdrawals are processed according to the rules encoded in the smart contract.

Swap Traders, Market Makers, and Liquidity Providers can all benefit from using IDEX, a decentralized exchange (DEX) platform. One of the main advantages of IDEX is the absence of failed trades, which can lead to wasted gas fees on other DEXs. IDEX also provides instant trade execution, eliminating the possibility of front-running or sandwich attacks and ensuring that users receive the best price and save money on gas. Additionally, IDEX dispatches all trades in the same order they were executed, avoiding gas wars and creating a fair trading environment.

For advanced traders, IDEX offers instant trade execution and balances that update immediately, enabling users to trade without waiting for previous trades to settle. In addition, the high-performance trading engine executes orders in real-time, leading to better pricing, and offers advanced order types such as stop-loss, post-only, and fill-or-kill.

Market makers can take advantage of IDEX's performant API and gas-free order placement and cancel feature, allowing for constant updates to orders without incurring additional costs. The IDEX AMM only updates the price when users trade against it, creating arbitrage opportunities.

Passive market makers can deposit funds into AMM liquidity pools to provide liquidity to the order book, earning higher LP APY due to higher trade volume and less profit leakage to miners. Liquidity mining incentives encourage participation in the early bootstrapping phase of the platform.

IDEX offers a unique decentralized trading experience that prioritizes user security and efficiency. With its innovative off-chain trading engine, IDEX offers instant trade execution, eliminates failed trades, and reduces settlement costs. In addition, the smart contracts enforce ownership and authorization and implement the rules of the AMM liquidity pools, adding an extra layer of security and reliability to the platform. This combination of advanced features and the benefits of decentralization makes IDEX a standout platform for casual and advanced traders, market makers, and liquidity providers. IDEX offers a comprehensive decentralized trading solution that combines efficiency, security, and versatility.