IDEX Decentralized Exchange to Roll Out Multi-Chain Solution; Starting With Polkadot & Binance Smart Chain
- IDEX, a popular decentralized exchange (DEX), plans to expand its infrastructure into two extra blockchains, adding its Ethereum (ETH) implementation.
In an announcement shared with BEG, IDEX confirmed a multi-chain solution expansion program that will integrate the decentralized exchange’s infrastructure to Polkadot and Binance Smart Chain (BSC). The latest move aims to expand the possibilities of traders on the platform to tokens, staking programs, and swaps across the blockchains.
IDEX is a layer-2 blockchain solution that combines the non-custodial security of a decentralized exchange while offering a centralized exchange speed and convenience. IDEX runs all of its operations on the Ethereum blockchain and plans to give every IDEX token holder on the ETH blockchain a similar number of tokens on the newly expanded chains.
As Ethereum faces huge gas costs and scalability issues with the rise of the DeFi market, new smart contract platforms such as Polkadot are coming up to offer users faster and cheaper platforms for developers to build their DeFi apps. In a statement on the expansion program, IDEX CEO Alex Wearn stated the expansion program aims to “give customers new networks to complete trades.”
Ethereum is facing tough competition from other blockchains, even in light of the ETH 2.0 Beacon chain launch, expected next week. However, we are stated that the latest move by IDEX to Polkadot and Binance Smart Chain is a diversification tactic rather than a competitive stance as the DEX aims to “put a stake in the ground and plant our [IDEX] flag early.”
The implementation of IDEX will happen on Polkadot Layer 0, meaning that the exchange will connect to a parallel chain (parachain) to Polkadot’s blockchain. IDEX will be integrated on Binance Smart Chain Layer 1, enabling traders to tap into BSC's centralized DEX ecosystem directly.
The new tokens will be distributed to IDEX users on Ethereum starting December 7, trading on BSC and Polkadot, expected to start in Q1 2021. Tokens that are not claimed promptly will be transferred to a community fund for uses promoting the development of IDEX.
Wearn further stated the decentralized exchange is working on adding new blockchains in the future but is currently working with Polkadot and BSC because both are currently compatible with the Ethereum Virtual Machine (EVM). He further said,
“As these platforms grow, we’ll see increased demand for trading these assets and a need for non-custodial trading solutions that support these networks.”
To enhance the cross-chain network that will provide a one-stop-shop allowing different assets to be traded on its platform, IDEX will offer independent assets across each blockchain. Binance Smart Chain and Polkadot will start with the tickers IDXB and IDXP, respectively.