IDEX provides a trustless, real-time, high-throughput trading experience in conjunction with blockchain based settlement. By centrally managing trade matching and Ethereum transaction dispatch, IDEX enables users to trade continuously without waiting for transactions to mine, fill multiple orders at once, and cancel orders immediately without any gas costs.
The Problem and Comparison
On current decentralized exchanges, such as Ethderdelta, 0x and Oasis, the security benefits of decentralization come at the cost of user experience. Trade speeds are limited by block times and order books update slowly and are often out of sync with the interface. Trades are not matched automatically, forcing users to manually select trades and opening them up to substantial user error. Filling multiple orders, or market orders, is impossible, and canceling or even placing limit orders costs gas. In giving up the ability to manage user’s cryptocurrency, these exchanges also abdicate control of the user experience.
Our Unique Solution
All of these issues arise from the fact that market takers are responsible for broadcasting the completed transaction to the blockchain.
IDEX takes a different approach. By controlling the transaction sequence, IDEX provides the speed and user experience of a centralized exchange combined with the security and auditability of a decentralized exchange.
IDEX consists of a smart contract, a trading engine, and a transaction processing arbiter. The smart contract is responsible for trustlessly storing all assets and executing trade settlement, and all trades must be authorized by the user’s private keys.
Unlike other decentralized exchanges, the IDEX smart contract is designed such that only the exchange is authorized to submit signed trades to Ethereum. This enables IDEX to control the order in which transactions are processed, separating the act of trading from final settlement. As users trade their exchange balances update in real-time, while their private keys are simultaneously used to authorize the trade in the contract. This authorization prevents users from rescinding any completed trades and prevents IDEX from initiating any unauthorized trades.
Authorized transactions are then passed to the arbiter which manages the queue of pending transactions. The arbiter dispatches them in sequence ensuring that each trade is mined in the correct order and that the smart contract balances stay in sync with the exchange balances.
Exchange Protocol: Snowglobe
IDEX is the first iteration of a decentralized exchange using the state hop approach to achieve real time trades. After launch on the mainnet, IDEX will be upgraded to operate on the Snowglobe decentralized exchange protocol. Snowglobe is a protocol for high-performance, EVM-compatible, decentralized childchain exchanges. Snowglobe allows for all exchanges on the network to share liquidity in one orderbook while maintaining their high-performance characteristics. Snowglobe consists of five main components working together:
Snowglobe childchain blockchain
Snowglobe Ethereum contract
Distributed off-chain orderbook
Local transaction arbiter(s)
Global transaction arbiter
The integrity of Snowglobe will be enforced by a network of operators. Security is ensured through a deposit in AURA, the staking-currency of the protocol, which ties platform security to the economic interests of those running it.
October 2017
IDEX launch on the mainnet. Semi-decentralized architecture consists of Ethereum smart contract plus central trading engine and transaction arbiter.
API integration. Opening the platform via API access will enable the development of trading bots, increasing liquidity and improving market efficiency.
December 4th 2017
Token sale for DVIP starts. DVIP will give discounted fees immediately.
A few weeks (or earlier) after the IDEX mainnet launch, Aurora (AURA) will become available and DVIP memberships will be redeemable for both AURA and a new membership.
Q4 2017 — Boreals go live with market making to stabilize the price
Q3 2018 — Deploy Snowglobe childchain architecture, allowing IDEX to increase transaction throughput.
Q4 2018 — Decentralization of the orderbook and transaction arbiter. This completes the transition of the current IDEX product to a decentralized childchain exchange.
Q1 2019 — Margin trading support. Including this functionality in the protocol will put the UX on par with existing centralized exchanges.
TBD — Once sharding is production ready we will launch the Snowglobe MVP, other exchanges are now able to build on the protocol.
TBD — Fully decentralized Aurora mvp with Decentralized Capital boreal loans.
The protocol will continue to evolve and incorporate new blockchain developments, for example zk-snarks or other privacy systems that enable private trades. These improvements are heavily dependent on further development of the Ethereum network.
Our Tokens
Aurora has two tokens: the network utility token (AURA) and the membership token (DVIP).
Aurora Token (AURA)
Similar to other blockchain networks, Snowglobe requires a well-designed incentive structure to ensure that the integrity of the order book and transaction sequence are not compromised. Aurora has its own native network token, AURA, that aligns the interests of Aurora and the Snowglobe operators. All of the revenue from Aurora is used to compensate those who stake their AURA and provide security for the Snowglobe network. AURA staking links the economic interests of the operators with the health of the network, and makes it extremely costly for any would be attacker to disrupt operations.
In addition to acquiring AURA during our membership token sale, Aurora tokens can be earned through our Market Making program. Please see below for more information, or reference our whitepaper for complete details.
AURA Details
Supply: 1,000,000,000 AURA
50% will be used to help accelerate adoption of the Aurora network. Of the total amount of AURA tokens, 40% will be used to help subsidize the growth of Aurora by distributing AURA to users and community members through programs such as market maker rewards, marketing campaigns, and air drops. The remaining 10% will be given out proportionally to individuals who purchase IDEX memberships.
The remaining 50% of AURA will be used as follows:
20% founding team
10% future employee token pool
10% future use
5% initial investors
5% businesses expenses
Market Making Rewards on IDEX
20% of the total AURA token supply will be initially dedicated to the Market Maker rewards program, the first of our community distribution initiatives. AURA in the program will be granted at a rate of 1% of the total remaining Market Maker rewards AURA per month, i.e. 0.2% of the total AURA supply, or 2 million AURA, will be distributed in the first month. This program will extend through at least the end of 2019. Market makers who place and execute limit orders on any IDEX market will receive AURA token grants proportional to the fees spent on their limit orders.
The earned amounts can be augmented by up to 2x by owning membership tokens (DVIP, see below).
DVIP Token
DVIP is the token for sale during our token sale. A total of 2000 DVIP will ever be created and we are selling 1600 DVIP in our token sale. The remaining tokens have been reserved for marketing efforts or have been previously sold during our presale.
DVIP is a membership token that provides 3 main benefits:
Free or discounted trades on IDEX through 2019
Up to 2x Market Making rewards multiple on IDEX through 2019 or for as long as the Market Making program runs, whichever is longer.
DVIP is redeemable for Aurora tokens (AURA) in the future. DVIP is redeemable at a rate of 50,000 AURA per 1 DVIP.
DVIP Membership Benefits on IDEX
Users with DVIP memberships are able to chose from the following IDEX benefits:
Free trades on IDEX and no market making rewards (rewards are based on fees paid). Note users must still pay Ethereum network (gas) fees.
Full trade fees on IDEX and 2x Market Making rewards
A proportional mix of both. The higher the fees paid, the higher the Market Making rewards, and vice versa.
Membership benefits are a function of both the amount of DVIP held by the member and the choice of rewards. Membership benefits do not increase for holdings above one full membership (1 DVIP), and amounts less than 1 DVIP will generate reduced benefits proportional to the amount of DVIP held.
For a complete breakdown of the benefits of DVIP membership, please visit the whitepaper.
Token Sale
Aurora IDEX is selling DVIP tokens during our token sale.
Start date: December 4th, 2017 at 4pm UTC
End date: January 4th, 2018 at 4pm UTC
Price: $3000 USD per DVIP, equivalent in ETH (price updated dynamically)
Accepted currencies: ETH
Token Details
Total Supply: 2000 DVIP
Token sale total: 1600 DVIP
Marketing: 30 DVIP
Bounty: 50 DVIP
Bug Bounty: 20 DVIP
Previously sold during our presale: 300 DVIP
Distribution details
DVIP tokens will be issued on the Ethereum platform as an ERC20 smart contract token. DVIP memberships will be distributed immediately upon purchase through our Ethereum smart contract. Within 2 weeks from the start of the sale, DVIP holders will be able to send their DVIP to the contract and get back AURA plus a new membership token. The DVIP sent will be burned by the contract after the conversion. The benefits of the new membership token are the same as DVIP minus being redeemable for AURA.
Funds distribution
https://auroradao.com/
https://idex.market/
https://auroradao.com/whitepaper
https://t.me/joinchat/FT1IVA8AWHiyUkU3adehxA
https://medium.com/aurora-dao
https://www.reddit.com/r/auroradao/
https://twitter.com/aurora_dao
http://eepurl.com/c3mZKj