XCHAIN - Arbitrum Orbit L2

An IDEX specific settlement network

IDEX settles to XCHAIN, an Arbitrum Orbit layer 2 that checkpoints directly into Ethereum mainnet. XCHAIN is specific to IDEX, ensuring that IDEX is able to operate at maximum capacity without encountering congestion or volatile gas prices.

The IDEX design uses an offchain trading engine for trade matching and execution. This provides a real-time trading experience by insulating traders from the high-latency and inconsistent execution times of blockchains.

While trade execution is instantaneous, trade settlement is not, and must still be done onchain. In a shared blockspace environment, like a public layer 1/layer 2, this can mean settlement backlogs (long withdrawal times) and high settlement costs.

XCHAIN fixes this.

  1. As an IDEX specific layer 2, XCHAIN ensures that there is never competition for trade settlement, and that all transactions process quickly.

  2. As a layer 2 with offchain data, XCHAIN provides sub-penny settlement costs and allows the protocol to offer a gas-free trading experience.

Learn more about Arbitrum Orbit here.

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