In brief
- IDEX closes $2.5 million seed round led by G1 Ventures and Borderless Capital.
- With the capital secured IDEX moves to launch a new type of crypto exchange merging security and control with high liquidity and functionality.
- "IDEX 2" API mainnet will launch in a few weeks.
Self-custodial crypto exchange IDEX has closed a $2.5 million funding round led by blockchain-centric venture capitals G1 Ventures and Borderless Capital. The goal of the fundraiser is to ship the next version of its exchange, known as "IDEX 2."
The focus of IDEX 2 will be to improve the exchange across many of its elements, making it faster and adding more features. The new version of the exchange has already been put on a testnet, with the mainnet penned for launch in several weeks.
What Is Decentralized Finance (DeFi)?
Bitcoin—a payment system in which anyone on earth can send money to anyone else—was just the start of the crypto revolution. The people building DeFi applications seek to take accessibility one step further. Decentralized finance has been touted as a possible solution to lowering the barrier of entry for those who struggled to access bank accounts. And more recently, it's being utilized by cryptocurrency owners for another purpose: to make more money. Let’s take a look. What is DeFi? Taken colle...
Alex Wearn, co-founder and CEO of IDEX, said, "We are thrilled to have the support of industry expert investors to help fuel IDEX 2.0's growth."
IDEX is a centralized exchange that lets users keep control over their own funds at all times, hence it is self-custodial. Since many truly decentralized exchanges are slow and have low volumes, IDEX centralizes the part of the system that matches orders in order to make a better user experience.
By letting users keep control over their own funds, it means IDEX does not look after all their funds—which centralized exchanges typically do. And, as we've seen with many centralized exchanges and their pools of funds, they're a honeypot for hackers.
IDEX plans to cut costs for crypto traders by up to 98 percent
Quicker, cheaper and more secure—that’s the idea behind the latest update to the Ethereum-based decentralized exchange IDEX. IDEX, which facilitates more than 40 percent of all transactions on decentralized exchanges, today announced that it will feature a new layer-two solution as part of a new update, “Optimized Optimistic Rollup.” The update will also feature a new staking model, and a new off-chain matching system that gets rid of coordination problems and allows for stop-loss trading strate...
With its centralized core, IDEX is able to compete with centralized exchanges in terms of faster trade execution, advanced order types, and a matching engine purportedly capable of reaching a throughput of hundreds of thousands of orders per second.
IDEX also has a system where those who hold its native token—and choose to stake it—earn a percentage of trading fees on the exchange.
