IDEX – a decentralized exchange platform from San Francisco – has reportedly disclosed details of new protocol upgrades, dedicated to fixing two major DeFi issues – slippage and front-running. 

Specifically, IDEX reportedly revealed that its new tool – Hybrid Liquidity protocol – will be offering a solution to these matters, via forming a combination of an order book and trading engine with the liquidity pools of an automated market maker (AMM). 

“The novel exchange design protects users from the most glaring pitfalls of AMMs, including failed trades and front-running, by instantly executing trades against the best combination of limit orders and pooled liquidity” The firm reportedly remarked. 

This type of measure will reportedly allow for higher returns generation for liquidity providers, and at the same time making room for additional advanced trades, such as stop-loss and limit orders. 

IDEX reportedly referred to studies from Dune Analytics, claiming that a maximum of 5% of transactions across Ether-powered exchange platforms did not succeed, mainly because of numerous complications, nominally “too much slippage or insufficient gas prices”. 

Insights generated by Etherscan and Dune Analytics further suggested that approximately 22% of Uniswap transactions between April 15 and 21 were not carried out successfully. 

Uniswap reportedly ranks 2nd in the list of biggest decentralized exchanges in terms of the trading volume. Mdex comes first, judging from 24-hour transactions as of May 6th. 

DeFi is reportedly among the most talked-about trends across the crypto sphere, but the rapid development the sector witnessed during the last 12 months took place with some side effects, with exorbitant costs, smart contract risks, and the increased chance of user error is a few nominal major issues limiting transactions.