IDEX, A San Francisco-based decentralized exchange introduced new protocol updates to address two of DeFi’s biggest problems: Slip and front run (advantageous investment).
The exchange claims that their protocol, Hybrid liquidity, solves these problems by combining an order book and trading machine with the liquidity funds of an automated market maker (AMM).
“The exchange’s novel design protects users from the most obvious pitfalls of AMMs like failed trades and front-running by executing trades instantly against the best combination of limit orders and pooled liquidity,” the company explains.
“This approach generates higher returns for liquidity providers while enabling more advanced operations such as stop-loss and limit orders.”
IDEX cites research by Dune Analytics to support this Up to 5% of transactions on decentralized Ethereum-based exchanges fail due to complications such as “excessive slippage or inadequate gas prices”. Data from Etherscan and Dune Analytics also show that roughly 22% of Uniswap transactions failed between April 15 and April 21.
Uniswap is the second largest decentralized exchange in terms of trading volume. to Coingecko. Mdex occupies the first position according to the transactions carried out within 24 hours up to Thursday.
DeFi, which stands for decentralized funding, is one of the biggest trends in the cryptocurrency market, but the industry’s rapid growth over the past 12 months has not been without incident. Exorbitant transaction costs, the risk of smart contracts, and the increased likelihood of user error are some of the main problems hindering adoption. Security is also an issue, like shows Hundreds of millions of dollars in theft and breach of DeFi assets.
However, DeFi technology is still on track to grow significantly in the next phase of the bull market. Currently, more than $ 137 billion is tied into the ecosystem, according to industry.