Newly launched crypto trade Etherex goals to be dwelling to all of Linea’s Ethereum capital, constructing on the promise of Ethereum’s decentralized community by committing to a full incentive alignment with its customers.
Etherex—which will get its identify from the 2014 Ethereum decentralized trade, or DEX, thought known as “EtherEX”—soft-launched on Monday, previous the Tuesday announcement from its community and accomplice Linea that particulars the Ethereum layer-2’s token plans and alignment with Ethereum mainnet.
(Disclaimer: Linea is a product of Consensys, one in every of 22 buyers in an editorially unbiased Decrypt.)
“Etherex was first imagined in 2014—when decentralized exchanges have been nonetheless a dream. Since then, we’ve seen pioneers like Uniswap, Curve, and Aerodrome form the DeFi panorama,” pseudonymous Etherex co-founder North instructed Decrypt.
“However Etherex is constructed round Ethereum’s authentic, uncompromising imaginative and prescient: decentralized infrastructure with full person alignment and higher particular person flexibility. Solely now, with instruments like Linea and zkEVMs, can we lastly notice that imaginative and prescient with out compromise.”
In keeping with the Etherex co-founder, that alignment is constructed into the core construction of the platform, which differs barely from different DEXs, working as an alternative as a “metaDEX.”
“A metaDEX solves the DEX trilemma,” Head of Linea Declan Fox instructed Decrypt earlier than the Etherex launch, describing the misalignment current between liquidity suppliers, merchants, and token holders with another decentralized exchanges.
“Whenever you take a look at a Uniswap mannequin, for instance, there is no apparent worth to token holders. And so a metaDEX basically solves that DEX trilemma by buying and selling charges going to LPs, and clearly token holders as properly.”
For Etherex, 100% of charges and incentives go to token holders, and contributors solely obtain locked tokens.
“There are not any insider unlocks, no early exits, and no worth extraction,” mentioned North.
The alignment between customers, the protocol, and the community is essential to the success of Etherex shifting ahead, and is precisely how the platform intends to attract in capital as hopeful inflows arrive to Linea.
Linea will supply native yield on bridged capital whereas benefitting ETH and LINEA with deflationary burns in its try to lure funds to the community which has ambitions to develop into “the chain for ETH capital,” in keeping with Fox.
“The upcoming LINEA token technology occasion is among the most anticipated occasions in crypto,” mentioned North. “It’ll deliver a surge of liquidity and a spotlight to Linea as folks re-discover what drew them to Linea within the first place.”
If that surge comes, then North mentioned Etherex’s function will likely be to develop into “the rails” for that capital, providing “sticky, sustainable, and net-positive” yield together with “infrastructure that lets customers swap and earn—not simply speculate and exit.”
These advantages, North mentioned, might in the end result in Etherex turning into dwelling to capital for establishments like SharpLink Gaming—a number one Ethereum treasury firm and member of the Linea Consortium, which can steward distribution of LINEA tokens—who might make the most of Etherex liquidity swimming pools and lending markets to “generate superior returns for his or her stakeholders.”
“As ETH flows in, Etherex will stand on the middle—serving to flip liquidity into long-term financial worth,” they mentioned.
