IDEX, a San Francisco-based decentralized cryptocurrency exchange (DEX), has announced the launch of its upcoming version 3 Hybrid Liquidity DEX on Polygon.
The hybrid model will combine traditional order book functions with automated market maker liquidity aggregators (AMMs) to provide higher financial returns for liquidity providers, while also providing typical investment instruments such as stop loss, limit order and real. Time of completion.
According to the platform, working on the Polygon network can reduce transaction costs, which are “10,000 to 1,000,000 times cheaper” than what is usually seen in Ethereum Level 1, and also allows you to take advantage of fully functional Ethereum scaling mechanisms on the network.
In the broader context of the high commissions burden of Decentralized Finance (DeFi) liquidity providers, a research article published by Topaz Blue and Bancor Protocol found that nearly half of Uniswap v3 liquidity providers experienced persistent losses based on 43% of platform snapshot data.
Despite this, according to CoinGecko, the platform ranks first in terms of 24-hour trading volume on the DEX at $ 2.8 billion, followed by PancakeSwap v2 with $ 2.3 billion.
When it comes to gas prices, many DeFi members are being encouraged to move to the network layer compatible Ethereum VM in search of cheaper alternatives, a trend that has led to an increase in overall market capitalization.
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“DeFi has stood in the way of addressing issues such as gas prices, front-wheel drive and spinning from the outset, but few solutions have actually provided answers to these issues,” said Alex Warren, CEO of IDEX.
“The new hybrid liquidity design protects users from these pain points while providing higher returns for liquidity providers to increase scalability in the wider decentralized economy.”
In addition to launching the protocol, Oslo Børs also offers a number of incentives for users to interact with the platform. Liquidity Mining will provide 1,400,000 IDEX tokens per week to increase liquidity, while the reward program will accommodate regular activity.