IDEX has launched the XCHAIN testnet, leveraging the L2 layer network of Polygon zkEVM Supernets.

On July 6, 2023, decentralized exchange IDEX announced the deployment of XCHAIN testnet. This testnet is a Layer 2 network supported by Polygon Supernets based on zkEVM. Current perpetual futures DEX still lags behind centralized exchanges in terms of performance and security, and XCHAIN aims to narrow this gap for IDEX. Additionally, XCHAIN allows other decentralized applications (dApps) to join and provide services to IDEX users and funds, expanding the range of products and services beyond perpetual futures trading.

According to TheBlock, the spot trading volume of DEX has significantly increased, reaching up to 22% of CEX trading volume (highest in May this year). In contrast, perpetual futures DEX trading volume has not even reached 2% of centralized exchanges'.

The high resource requirements for order matching, margin calculation, and trade settlement make it difficult to implant the same DEX innovation into decentralized futures exchanges.

IDEX co-founder and CEO Alex Wearn said about XCHAIN: "In our six-year history, we have always focused on achieving the performance and user experience of centralized exchanges. However, the high settlement cost and low throughput of existing blockchain solutions make true decentralization impossible without making significant security compromises. XCHAIN is the final piece of the puzzle that enables DEX to compete head-to-head with CEX."

XCHAIN utilizes Polygon zkEVM technology to provide zero-gas transactions, eliminating the cost impact that prevents perpetual futures DEX from achieving similar growth to spot DEX. Through this development, IDEX combines the speed and efficiency of traditional exchanges with the transparency and security of blockchain technology to create a better trading experience. Traders will also benefit from better liquidity, reliable execution, and millisecond-level latency, while ensuring that their funds and trade settlements are directly secured by Ethereum.

Polygon Supernets, based on zkEVM technology, is a set of underlying solutions for building Web 3 applications. Its advantages include high performance, customizable App chains, extremely low transaction costs (even zero), and it helps facilitate scalability for upper-layer applications. Applications using Polygon Supernets can also integrate with each other, creating a seamless ecosystem for trading and free interaction, with security provided by Ethereum.

Sandeep Nailwal, co-founder of Polygon, said: "This is an excellent use case that we found when building Polygon Supernets based on zkEVM and Polygon zkEVM technologies. We are just getting started, but when others see what IDEX can do with this technology, we know they will also implement and deploy it immediately."

Before the Mainnet release, IDEX will open the XCHAIN network to a limited number of public participants during the incentivized testing period. More details will be announced in the coming weeks.

About IDEX

IDEX was founded in 2017 and aims to revolutionize the traditional exchange industry through the use of blockchain technology. It is committed to providing users with a secure, efficient, and user-friendly trading experience.

The speed and efficiency of the system are combined with the transparency and security of blockchain technology. IDEX is designed for all traders, offering instant execution, millisecond-level latency, and gas-free settlement, while allowing users to maintain full control and custody of their funds. To learn more, please visit https://idex.io.