What is IDEX? And how does IDEX work? (2022 edition)

What is IDEX (IDEX)?

IDEX is a decentralized exchange with elements of centralized exchanges that make the network faster while maintaining its integrity as a decentralized environment. The platform is hosted on both Ethereum and Binance Smart Chain. Most similar projects use the automated market maker model to execute trades on a DEX, but IDEX has a different approach.

IDEX uses order books to initiate and execute exchanges of supported cryptocurrencies. It is debatable whether IDEX can be categorized as a decentralized exchange or a non-custodial exchange since users need to complete know your customer verification and provide their email address. IDEX on BSC offers features that are commonly found on centralized exchanges, such as the stop-loss function. As of recently, IDEX is also available on Polkadot as a part of the project IDEX Multichain.

Users can exchange cryptocurrencies supported by Ethereum, Polkadot, and Binance Smart Chain. The main goal of the project is to enable thousands of transactions to be executed and processed within seconds. IDEX is the utility token of the exchange and can be staked by Nodes to validate transactions on the off-chain ledger.

How Does IDEX Work?

IDEX functions as an order book exchange while the project combines elements of centralized and decentralized exchanges to facilitate greater speeds for executing transactions on the ledger. The majority of DEX platforms in the market are AMMs, while IDEX uses order books and centralizes the system used for matching orders on the network.

For maximum functionality and speed on Ethereum, IDEX uses Layer-2 Optimistic Rollups. The Optimistic Rollup is a solution for scaling that uses greater speeds in processing transactions off-chain while retaining the decentralized model of the mainnet, in this case, IDEX. Ethereum users can experience congestion issues when the network is busy, which is when gas prices increase and using Ethereum becomes expensive. That is why Ethereum is slowly transitioning to the Proof of Stake consensus mechanism with the upcoming Ethereum 2.0 upgrade.

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To mitigate congestion and keep gas prices at cost-efficient levels, IDEX uses Layer 2 scaling solutions and Merkle trees. This combination also allows the network to settle bulk transactions. Scaling of IDEX on BSC is performed through the use of off-chain infrastructures and matching engines (Ethereum Virtual Machine) to enable fast execution and instant trades.

Who Are the Founders of IDEX? (History of IDEX)

IDEX was originally founded and developed in 2017 under the brand Aurora. The project was co-founded by Alex Wearn and Philip Wearn, who is the co-founder of EtherEx. Aurora rebranded to IDEX in 2019 with the idea of creating and developing the first real-time non-custodial exchange that combines a centralized system for matching orders and decentralization.

Alex Wearn is the CEO of IDEX and has a colorful background in software development with previous management roles at Amazon, IBM, and Adobe. The idea behind the project is to enable users to access banking and financial tools and features for instant exchanging of cryptos across multiple platforms such as Ethereum, Binance Smart Chain, Polkadot, and more upcoming integrations.

What Makes IDEX Unique?

The majority of DEX platforms use automated market maker models to execute buy and sell orders, while IDEX employs order books with a centralized system for matching orders. Centralization within this system is achieved to ensure instant execution and fast processing of all off-chain transactions.

IDEX offers guaranteed execution of trades and low latency, while the software represents a unique combination of centralized and decentralized elements used in the system. Due to its unique approach to sourcing exchange services, IDEX is the first decentralized exchange of its kind while offering full custody of funds to users. Advanced order types, staking with an automated reward system, and a user-friendly UI make IDEX a unique and valuable project in the sector of DeFi and the broader industry.

What Gives IDEX Value?

IDEX draws its value from its technical capacity, technology, and utility. As a valuable addition to the market of decentralized exchanges, IDEX presents a relevant and unique project that combines centralized and decentralized values while preserving its integrity as a DEX.

The intrinsic value of IDEX is driven by the frequency of use and the number of active users, but also by its technology, features, tools, and capacity to scale. The intrinsic value often doesn’t match the market price as IDEX is susceptible to frequent changes much like other cryptocurrencies. The cryptocurrency is volatile and is subject to market speculation, which is why IDEX can be often overbought or underbought.

IDEX is as valuable as its use case and the ability of the system to deliver expected services to its users, which is exchanging various cryptocurrencies in the case of IDEX. The protocol is compatible with BSC, and Ethereum, while a Polkadot integration has also been announced.

How Many IDEX (IDEX) Coins Are There in Circulation?

There are currently loading IDEX in circulation out of a total of loading IDEX. The token has a limited supply, much like Bitcoin and many other cryptocurrencies. The finite supply prevents devaluation of IDEX coins through inflation and means that no new IDEX coins should be minted once the total supply is exhausted.

The number of IDEX coins in circulation multiplied by the current price of IDEX equals the market cap. The market cap ranks IDEX in comparison with other cryptocurrencies in the market and also determines its dominance and market share.

Other Technical Data

IDEX users can also stake IDEX coins and get rewards in the form of 50% of trading fees. The network rewards contributors that stake IDEX and act as Validator Nodes. More staking revenue provides more liquidity and also increases volumes, which is why users are incentivized to stake on the network.

As more market makers, users, and traders join the IDEX platform and stake, the performance of the network improves as IDEX can scale through Layer 2 solutions. The network is run by Replicator Nodes which are required to stake at least 10,000 IDEX via the IDEX network or wallet. The network also plans to introduce the role of Validators. Validators will audit transactions and secure Layer 2 deposits.

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How is the IDEX Network Secured?

The IDEX network secures users’ funds via smart contracts instead of relying on the questionable security of centralized entities as in the case of centralized exchanges. The network also communicates through external data, i.e. IDEX connects to networks like Ethereum and Binance Smart Chain, requiring oracles for an added layer of security.

The network uses an automated system for incentivizing Node operators. Node operators validate transactions and other operations on the network, for which they are rewarded as integral network participants. IDEX, the utility token, is used for securing the protocol through staking as Node operators need to stake IDEX to operate the network. 

How to Use IDEX?

IDEX is a decentralized exchange that people can use with full custody over their cryptocurrency funds but with the utmost security of the system. Users can stake IDEX and use it as the main method of payment on the network, while IDEX represents the underlying asset for all operations on the network. Users can exchange cryptocurrencies supported by Ethereum and Binance Smart Chain, while the dev team has also announced that IDEX will integrate with Polkadot and more networks in the future.

IDEX enables fast transactions and instant execution of trades while providing users with an innovative balance of centralized and decentralized elements. You can stake IDEX and collect rewards from trading fees as all Nodes are rewarded for their contribution to the network. The larger the number of Nodes, the greater the rewards, liquidity, and volumes.

How to Choose an IDEX Wallet?

IDEX can be stored on the IDEX platform where it can be used for staking. There are plenty of other places you could store your IDEX and the type of wallet you choose will likely depend on how much you need to store and what you intend to do with it.

Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical knowledge and are a more expensive option. As such, they may be better suited to storing larger amounts of IDEX for more experienced users.

Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of IDEX or more novice users.

Online wallets or web wallets are also free and easy to use, and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your IDEX, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.

Kriptomat offers a secure storage solution, allowing you to both store and trade your IDEX tokens without hassle. Storing your IDEX with Kriptomat provides you with enterprise-grade security and user-friendly functionality.

Buying and selling IDEX, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

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IDEX Proof of Stake

IDEX relies on the Proof of Stake consensus mechanism and employs staking and Node operators to secure the network and validate transactions.

Proof of Stake has proven to be more efficient than the Proof of Work consensus mechanism as it requires less power and has a greater ability to scale and prevent network congestion. IDEX combines the decentralized protocol of Proof of Stake with centralized elements that are used in the system to match orders from order books and execute transactions in batches.

Conclusion

IDEX is a unique exchange that combines centralization and decentralization to bring a non-custodial DEX to global use. As the first DEX of its kind that allows users to keep full ownership over cryptocurrency funds while maintaining the security of balances on the network, IDEX also enables instant execution of trades and fast transactions.

The official dev team is working on IDEX 2.0, which should provide more advanced features and tools for traders and market makers. The new upgraded version will bring more functionality to users with more integrated platforms and more supported crypto assets.

IDEX FAQ

What are the fees and limits on IDEX?

The trading fees are 0.2% for takers and 0.1% for makers. The minimum trade orders are the equivalent of 1 ETH for takers and 0.5 ETH for makers, while the minimum withdrawal is 0.2 ETH.

What’s the difference between Replicators and Validators?

Replicators and Validators are both staking nodes but Replicators distribute API data while Validators will audit transactions. Replicators require a minimum stake of 10,000 IDEX to be deposited in the IDEX network or wallet and are immune from slashing, while the minimum stake for Validators is yet to be decided and must be deposited in the staking contract. Both types of nodes earn IDEX trading fees but Validators will also be able to earn fraud bounties.

How to buy IDEX?

Buying IDEX is as easy as visiting Kriptomat’s how to buy IDEX page and choosing your preferred method of payment.

How to sell IDEX?

If you already own IDEX and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.

IDEX Price

IDEX price is subject to frequent and radical changes in the market that are mostly driven by volatility. IDEX price is affected by a multitude of factors that may cause the price to rise or dip within a relatively brief timeframe. You can check live IDEX prices on Kriptomat.

As well as traditional factors such as market sentiment, the flow of assets on exchanges, and the economy in general, the price of IDEX is also influenced by the amount of IDEX being staked and the popularity of the IDEX platform.

The current IDEX price is loading EUR.

The 24-hour trading volume of IDEX is loading EUR. IDEX is currently ranked of all cryptocurrencies by total market capitalization, with a market cap of loading EUR. It has a circulating supply of loading IDEX and a max supply of loading IDEX.

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