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.