IDEX uses an application-specific layer-2 solution, Optimized Optimistic Rollup (O2 Rollup).* O2 Rollup correctness is enforced by the IDEX staking validator network. All aspects of the system are cryptographically provable, with transparent rules that aren’t subject to majority consensus, and it includes a unique solution to the hardest problem of layer-2, data availability. O2 Rollup, combined with our intelligent off-chain matching system, allows IDEX to:
Eliminate all gas costs for settling trades to the Ethereum network
Introduce a true order matching system that eliminates coordination problems found on IDEX 1.0 and other DEXs (affectionately known by our community as “the bot problem”)
Add new order types, such as stop-loss, to our ever-improving list of advanced trading options
Offer traders and institutions a high-trust, secure transaction environment with throughput capacity matching centralized competitors
*Many of these features are available today. Layer-2 will be fully rolled out in Phase 3.