Hybrid Liquidity

IDEX is the first order book exchange to integrate a smart-contract Automated Market Maker (AMM) as a liquidity source.

IDEX Hybrid Liquidity (IDEX HL) is a next generation DEX that combines a traditional order book and matching engine with liquidity pools of an automated market maker (AMM). Traders are seamlessly matched against the best combination of limit orders and pool liquidity for the lowest-cost execution without any additional effort.

Like other order book exchanges, IDEX uses a high-performance matching engine to execute trades in real-time, with advanced order types that enable traders to implement sophisticated trading strategies. However, IDEX HL is unique in that trades are automatically matched with the best combination of both limit orders of other users and an AMM liquidity pool.

This hybrid execution enables users to interact with liquidity pools in a totally new way and leads to a host of advantages:

  • Tight spreads and always-on liquidity, even for long-tail markets, without the expense or complexity of a traditional market maker

  • Passive liquidity provision opportunities and returns for users.

The order placement and trading interface for IDEX HL is exactly the same as a standard limit order exchange, both on the web and via the API. There is also a swap UI provided as a convenience.

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