IDEX, a decentralized cryptocurrency commutation (DEX) based in San Francisco, has announced the upcoming launch of its v3 Hybrid Liquidity DEX on Polygon.

The hybrid model volition merge traditional order book functionalities with automated marketplace maker (AMM) liquidity pools in a bid to cultivate higher financial returns for the services liquidity providers, as well as provide typical investing tools such as stop-losses, limit orders and existent-time execution.

According to the platform, operating on the Polygon network enables lower transaction costs to the value of "x,000–100,000 times cheaper" than is typically witnessed on Ethereum layer-one, in addition to benefitting from the network's full-stack Ethereum scaling mechanics.

For greater context into the burden of high fees for liquidity providers in decentralized finance (DeFi), a research newspaper published by Topaz Blue and Bancor Protocol uncovered that most half of all liquidity providers on Uniswap v3 have been subject to impermanent loss based upon a 43% data snapshot of the platform.

Despite this, the platform ranks commencement in DEX 24-hr trading volume at $2.8 billion, co-ordinate to data from CoinGecko, closely followed by PancakeSwap v2 with $2.3 billion.

Every bit for gas prices, many DeFi participants have been encouraged to transition over to Ethereum Virtual Machine-uniform and layer-two networks in search of cheaper alternatives, a trend that has resulted in a soaring level of market full value locked.

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IDEX CEO Alex Wearn said, "DeFi has been hamstrung past problems like gas prices, front-running and slippage since its inception, yet few solutions take truly offered answers to these problems," adding:

"The novel Hybrid Liquidity pattern protects users from these hurting points, while simultaneously generating college returns for liquidity providers to boost the scalability of the wider decentralized economy."

Alongside the protocol launch, the substitution is besides offering a number of incentives for users that interact with the platform. Liquidity Mining will provide 1,400,000 IDEX tokens per calendar week to raise liquidity, while a rewards program will acknowledge regular activity.