Decentralized finance (DeFi) continues its upward trajectory in the third quarter of 2020.

1. Q2 2020
Quarterly Insights
Report

2. DISCLAIMER
Information provided here is general and is for informational purposes only, and should not be construed as a recommendation to engage in any transaction or be taken to suggest a strategy in respect of any digital assets or the developers thereof. We do not provide advisory
services regarding investment, tax, legal, financial, accounting, consulting, or any other related services. This content should not be the basis for making decisions or be interpreted as recommendations to buy, sell, use or hold any digital asset. We cannot guarantee the
accuracy or completeness of the information contained herein. This information may include opinions, estimates, projections and other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the
future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this publication. Please keep in mind
that we will not revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events.
IDEX Quarterly Insights Report
April-June 2020

3. “Despite the twists and turns of 2020, DeFi continues to exceed
expectations. With the launch of IDEX 2.0 API sandbox
imminent, we're excited to be a part of the momentum."
Alex Wearn
CEO/Co-Founder

4. Quarterly Insights
Report
Q2 2020
1
7
Key Takeaways
Market Dynamics
Global Market
IDEX Trading Volume
IDEX Listings
Tax Day 2020
Buzz
Next Steps to Consider
2
5
6

5. SPOTLIGHT ON DEFI
LENDING
Key
Takeaways
IDEX Quarterly Insights Report, Q2 2020 1
Exchanges are slowly blurring the lines that once separated
centralized and decentralized services. On one side,
decentralized exchanges have begun updating and integrating
services to offer more seamless trading, reminiscent of their
centralized counterparts (e.g. IDEX 2.0) On the other,
centralized exchanges are enabling access to decentralized
projects. Coinbase Wallet began offering users access to
Compound and dYdX (margin trading), while OKEx introduced
users to the Dai Savings Rate (DSR).
Q2 of 2020 revealed tremendous growth for DApps across multiple
ecosystems, led by major DeFi projects built on Ethereum. According
to data provider DeFiPulse, the cumulative value of tokens locked in
DeFi applications neared $1.65B at the close of the quarter, signaling
increased adoption for one of Ethereum’s most compelling use cases.
From a broader perspective, Ethereum may have even more good
news in the coming quarters. Ethereum 2.0 is slated for launch this
year and Reddit (430 million users) is testing a pilot Ethereum-based
reputation system.
.
DeFi continues to find promise, gaining traction and validating its use
cases. We’re thrilled to be a part of this movement and are excited to
take it even further with IDEX 2.0.
Decentralized lending protocols have been a big hit in the DeFi
space, offering users a straightforward process to lending—
borrowers put up crypto collateral via smart contracts for access
to a loan. Leading this category by a long shot is Compound.
At the close of the quarter, all eyes have been on Compound,
which showed the biggest surge in activity across DeFi DApps—
almost 45% of activity in the DeFi category. At the start of 2019,
the category saw barely 200 active wallets. By the end of Q1
2020, that number jumped to 1,500 active wallets. Then, by the
end of Q2 2020, it again jumped to 4,000. This growth
represents around 500% year-on-year and around 200%
quarter-on-quarter.
Decentralized finance, or “DeFi,” continues to generate buzz
well into Q2 of 2020. Here’s what we believe are noteworthy
topics to monitor.
EXCHANGES
CONTINUE TO EVOLVE
STABLECOIN VOLUME ATH
Trader appetites for stablecoins continue to grow. As reported
by The Block, the adjusted transaction volume for stablecoins hit
a new all-time high in June, totaling $54.9 billion—a 13.9%
increase over the previous month's $48.2 billion. This rise marks
the fourth consecutive month in which the figure was above $40
billion. Tether continues to dominate the charts, but Dai may
very well be giving competitors a run for their money when it
comes to velocity.
ETHEREUM
MAINTAINS THE LEAD

6. TOTAL MARKET CAP
Total market cap indicates the value of the entire cryptocurrency market. It is the sum of
the market cap of all coins that are in existence in the cryptocurrency space. There are
currently a total of 5695 coins and tokens, and total market cap measures the size of
this entire market. This value can help identify the strength and potential of the
cryptocurrency market at a given point in time. Currently, the total market cap stands
at nearly USD $269B.
GlobalMarket
Market Dynamics
2
TRADING VOLUME
Trade volume is the total amount of assets traded during a given period of time. Trading
volume can be a gauge for user trust, market stability, and liquidity.
Source: coinmarketcap.com
IDEX Quarterly Insights Report, Q2 2020

7. GlobalMarket
Market Dynamics
3
TRADING VOLUME
Volume can be used to gauge the liquidity of an exchange; higher liquidity means more market participants and trading activity. A larger group of participants can pull prices toward
equilibrium faster and match trades quicker.
Volume also indicates the size of the exchange and helps traders establish a ranking for the market.
IDEX Quarterly Insights Report, Q2 2020

8. THIS QUARTER, WE ADDED 21 NEW TOKEN LISTINGS.
NewIDEXListings
IDEX Quarterly Report, Q3 2019
Market Dynamics
4
04/03/2020 Reserve RSV
04/13/2020 Pylon Token PLYNT
04/30/2020 Universal Market Access UMA
05/01/2020 TNC Group Token TNC
05/06/2020 FreightTrust Token EDI
05/11/2020 Aragon Network Juror ANJ
05/17/2020 XIO Network XIO
05/27/2020 KardiaChain KAI
05/28/2020 DXdao DXD
05/29/2020 Chromia CHR
06/01/2020 Jarvis JRT
06/04/2020 Ghost by McAfee GHOST
06/05/2020 Tether USDT
06/10/2020 AZBI AZBI
06/16/2020 Compound COMP
06/23/2020 Balancer BAL
06/24/2020 DMMDAO DMG
07/01/2020 DEXTools DEXT
07/02/2020 Ternio TERN
07/03/2020 CurioInvest CUR
07/06/2020 Cartesi CTSI

9. IRS WARNING LETTERS
Tax Day
2020
5
The IRS laid out criteria to apply specific identification
accounting for trading crypto assets, allowing taxpayers to
choose which units of virtual currency are deemed to be sold,
exchanged, or otherwise disposed of if they can specifically
identify which unit or units of virtual currency are involved in the
transaction and substantiate their basis in those units.
Download our 2020 Cryptocurrency Tax Preparedness Guide for a
better understanding of your crypto tax obligations.
In July 2019, the IRS began sending warning letters to US
taxpayers who hold cryptocurrency. The IRS is now following up
with CP-2000 notices in cases of mismatched reporting between
tax returns and the taxpayer's 1099-K.
Tax day, like everything else this year, is different.
Early in 2020, the United States Internal Revenue
Service (IRS) rescheduled the usual April deadline to
July 15, leaving traders with some wiggle room for
filing and reviewing several new updates to crypto tax
guidance.
In 2014, the IRS issued Notice 2014-21, 2014-16
I.R.B. 938 (PDF), explaining that virtual currency is
treated as property for Federal income tax purposes
and providing examples of how longstanding tax
principles applicable to transactions involving
property apply to virtual currency. For 2020, the IRS
has expanded on the examples provided in Notice
2014-21 along with an extensive FAQ section. Here
are several noteworthy updates.
SPECIFIC
IDENTIFICATION
2019 SCHEDULE 1
Starting this year, US taxpayers will have to start answering
the question “At any time during 2019, did you receive, sell,
send, exchange, or otherwise acquire any financial interest in
any virtual currency?”
HARD FORKS AND
TAXABLE INCOME
New IRS guidance released in October 2019 will apply
retroactively. The update states that coins received from a hard
fork are taxable income, meaning that taxpayers are liable for
reporting and paying income tax upon receipt.
DOWNLOAD
IDEX Quarterly Insights Report, Q2 2020

10. 6
Buzz Crypto communities namely exist in the online sphere but that
has not deterred the rapid spread of news, debate, and hot
topics. Rather, it has fueled robust conversation and rapid
spread of controversial topics.
Here are several of this quarter’s buzzworthy topics.
The Chicago DeFi Alliance (Volt
Capital, TD Ameritrade, CMT
Digital, and more) to provide
select DeFi projects (e.g. IDEX)
with support and guidance.
Read More
DAOs
As more companies bet on
and adopt blockchain, the
topic of decentralized
autonomous organizations is
once again rising in
popularity.
The median transaction fees on
the Ethereum network are the
highest they have been in two
years.
Read More
Monthly volumes for DEXs soared
past $1.5B, hitting an ATH in June
Read More
Reddit has partnered with the
Ethereum Foundation to explore
scaling solutions for its crypto-
powered rewards system.
Read More
IDEX Quarterly Insights Report, Q2 2020

11. Make a Trade
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us.
Next Steps to Consider
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and get started for free.
ABOUT IDEX
IDEX is a leading DEX on Ethereum, providing retail and institutional customers with a secure, trustless, and real-time trading experience backed by transparent
blockchain settlement. By managing trade matching and Ethereum transaction dispatch off-chain, IDEX eliminates mining delays and enables continuous trading,
multiple simultaneous orders, and zero-fee cancellations.
7IDEX Quarterly Insights Report, Q2 2020