IDEX, one of Ethereum’s pioneering decentralized exchanges, has announced its plans to launch XCHAIN, a zkEVM-based Layer 2 chain developed in collaboration with Polygon’s Supernets software stack. XCHAIN is designed to provide a decentralized perpetual trading platform, marking IDEX’s efforts to reinvent itself and compete with centralized exchanges.
IDEX’s Journey and the Need for XCHAIN
Founded in 2017, IDEX gained recognition as one of Ethereum’s prominent decentralized exchanges between 2017 and 2019. However, the rise of automated market makers, led by platforms like Uniswap, diminished IDEX’s competitive advantage. To regain its footing, IDEX set out to create its own Layer 2 network.
Partnership with Polygon and Supernets
IDEX’s plans for XCHAIN align perfectly with Polygon’s vision of enabling existing crypto projects to build their independent blockchains. Polygon’s Supernets, offering customizable app-chains as sidechains or Layer 2 chains, proved to be an ideal foundation for XCHAIN’s development.
The Birth of XCHAIN and its Advantages
XCHAIN is a zkEVM Layer 2 for IDEX.
IDEX’s CEO, Alex Wearn, clarified misconceptions by affirming that XCHAIN is indeed a zkEVM Layer 2 solution tailored specifically for IDEX. This new development is expected to drive the next wave of infrastructure in the crypto space.
XCHAIN’s app-specific network design allows for custom decisions such as fair ordering and subsidized transactions. These features are poised to significantly enhance user experience and facilitate the scalability of the crypto industry, potentially accommodating a user base 100 times larger than the current one.
IDEX and Polygon’s Collaboration
Recognition from Polygon: IDEX’s previous announcement regarding Layer 3 technology caught the attention of Polygon and its co-founder, Sandeep Nailwal. Polygon reached out to share its vision, leading to months of discussions and due diligence on the technology.
Embracing Polygon 2.0: After thorough evaluation, IDEX expressed its enthusiasm for Polygon’s technology, particularly Polygon 2.0. The positive outcome of their diligence process solidified their commitment to XCHAIN, leveraging the advantages provided by Polygon’s technology.
XCHAIN’s Features and Advantages
XCHAIN offers everything that a Layer 3 solution can provide, including offchain data for gas-free settlement, fair ordering via IDEX’s matching engine and XCHAIN sequencer, and compatibility with the Ethereum Virtual Machine (EVM).
In addition to Layer 2 functionalities, XCHAIN introduces features that set it apart from Layer 3 solutions. These include direct security of deposits and settlement by Ethereum’s Layer 1, seamless integration with Polygon and other zkEVM supernets for efficient transactions, and the ability for other dapps to deploy and serve IDEX users.
The Path Ahead for XCHAIN
IDEX’s CEO, Alex Wearn, expressed personal excitement about the XCHAIN project, as it represents the culmination of their primary goal: creating a DEX with user experience and costs on par with centralized exchanges. With XCHAIN, users can enjoy the security and transparency of on-chain settlement without incurring excessive expenses and complications.
1) Today we at @idexio announced our plans for XCHAIN, a zkEVM Layer 2 built specifically for IDEX.
Didn’t you just announce Layer 3?
Is this just the latest buzz word? pic.twitter.com/ow1FhNa817
— Alex Wearn (@AlexWearn) July 6, 2023
XCHAIN, the zkEVM-based Layer 2 chain developed by IDEX in collaboration with Polygon’s Supernets, is set to revolutionize the decentralized exchange landscape. Bycombining IDEX’s expertise and Polygon’s technology, XCHAIN aims to provide enhanced user experience, scalability, and cost-effectiveness. With its Internal Testnet already live and plans to open it to the community in the coming weeks, IDEX invites interested individuals to join their Discord channel or reach out via direct message to learn more about the exciting developments and innovations brought forth by XCHAIN.