Notes

IDEX v4


IDEX v4 is one of the best decentralized linear futures (DEX) exchanges in the cryptocurrency market. The exchange ensures the security of cryptocurrency transactions and reduces commission costs for cooperatives.

One of the main advantages of IDEX v4 are those based on layer 2 solutions, you can ensure productivity when the number of trading pairs on the platform scales up. This means core students can access a growing number of markets without sacrificing platform performance. Additionally, IDEX v4 ensures ultra-low commissions, meaning only 0.05% of transaction fees. Significantly less, and it sounds like lower commissions are charged on centralized exchanges. Low commissions ensure the usability of the platform for newcomers and other investors.


RATE

IDEX Staking allows IDEX traders, market makers, and fans to operate part of IDEX infrastructure, thereby contributing to IDEX's decentralization and platform robustness. Stakers stake IDEX tokens and run the IDEXd staking software to run nodes. Stakers receive 50% of the transaction fees charged by the network as compensation for their work.

Staking Node Operators maintain live copies of IDEX order books and other system data, and expose compliant REST API endpoints to the public. This reduces IDEX operational costs by offloading popular API operations. Maintaining a staking node does not require the use of bonds, thus providing a risk-free (no possibility of slashing) staking experience.


LIQUIDITY MINING

The launch of IDEX Hybrid Liquidity (HL) marks the first time an AMM can be used to trade on an order book. In order to promote the growth of the IDEX HL mining pool, IDEX will implement a liquidity mining plan. IDEX tokens are distributed in proportion to the liquidity contributed by each user relative to the total liquidity of IDEX.


REFERRAL PROGRAM

Refer users to IDEX and get 80% of your journal fees paid in USDC!

The referral page is located in the Rewards section of IDEX.
Once connected to IDEX, each wallet generates a unique referral code.
You can refer friends in two ways: by giving them your unique referral URL or by giving them your unique referral code, which can be entered manually on the referral page
Both the referral URL and the code can be found on the referral page.


Commission Calculation:

Once a referred user starts trading, you can earn referral commissions from user-generated log fees, capped at 80% for a limited time. In return, referral users receive a 5% discount on transaction fees.

Additionally, there is a 5% correction factor to account for fee slippage charged on volatile assets (this factor is calculated by analyzing historical transaction and fee data). This 5% factor applies to referral commissions (ie 80% commission rate offsets 76% commission after applying the correction factor). This ensures that the protocol does not suffer losses due to price movements of the underlying asset.

Example:

The referred user generates a transaction fee worth $10 at a commission rate of 80%, and the referred user generates a referral fee of $8 as a referrer, and you will receive $7.60 (8 * $0.95) in USDC.
Referral commissions can be requested at any time through the referral page.

HUMMINGBOT

IDEX is the first DEX to integrate an Automated Market Maker (AMM) into the Central Limit Order Book (CLOB) design. AMMs use the price function to provide liquidity to the market at a specific price and are only updated when users transact with it.

This programmatic approach not only lowers barriers to market entry, but also creates arbitrage opportunities.

Buyers pay AMM LPs for the right to rebalance and keep prices in line, and earn the difference for themselves! IDEX has integrated with Hummingbot to make it as easy as possible to run trading bots and take advantage of AMM arbitrage opportunities. Hummingbot is an open source software that allows you to create and run customizable trading strategies.

The software includes built-in strategies that make it easy for beginners to get started, as well as a powerful set of features that allow experts to further customize and refine their trades. Hummingbot provides an arbitrage trading strategy as one of the default configurations.

To execute this strategy, you need to deposit funds and list Hummingbot on IDEX and secondary exchanges such as Binance for example. When the price on the secondary exchange changes, Hummingbot identifies and executes any profitable arbitrage strategies by buying on the exchange and selling.


CONCLUSOIN

IDEX's hybrid liquidity DEX represents a unique approach to decentralized trading, providing traders with a combination of the performance and features of a centralized exchange and the security and liquidity of an automated market maker (AMM).

By blending the two models, IDEX aims to offer traders the best of both worlds, with the ability to get the best spreads, avoid failed transactions, and easily provide liquidity, all while using real limit and stop-loss orders.

Overall, IDEX's approach to decentralized trading represents an innovative solution that has the potential to offer traders a superior trading experience compared to traditional DEX platforms.

One of the key advantages of IDEX's hybrid liquidity model is the ability to provide traders with faster and more reliable order execution, thanks to the high-performance order book and matching engine. This can be especially beneficial during periods of high trading volume when traditional AMMs can suffer from slippage and other issues.

Another advantage of IDEX is its focus on security and liquidity, which are essential for any trading platform. By using a combination of smart contract technology and an off-chain order book, IDEX is able to provide users with a high degree of security while also offering the liquidity necessary for traders to execute their orders effectively.

IDEX also provides users with the ability to easily provide liquidity through staking, which can be a profitable way for traders to earn rewards while also helping to ensure the liquidity of the platform. In addition, IDEX offers a range of trading tools and features, including real limit and stop-loss orders, that can help traders to better manage their risk and optimize their trading strategies.

Overall, IDEX's hybrid liquidity DEX represents an innovative approach to decentralized trading that offers traders a range of benefits, including faster and more reliable order execution, enhanced security and liquidity, and a range of advanced trading tools and features. As the decentralized trading space continues to evolve, platforms like IDEX will likely play an increasingly important role in meeting the needs of traders and investors seeking a more efficient and secure way to trade cryptocurrencies and other digital assets.