Etherex: Linea’s Decentralized Exchange Advancing Ethereum’s Vision

Etherex, launching on July 28, 2025, on Linea, Consensys’ Ethereum Layer-2 zkEVM network, in partnership with Nile Exchange, is a fully on-chain decentralized exchange (DEX) designed to realize Ethereum’s 2014 vision of permissionless, trustless trading. As an evolution of Nile Exchange, launched in early 2023, Etherex builds on the EtherX concept envisioned by Ethereum co-founders Vitalik Buterin and Joseph Lubin, aiming to eliminate centralized intermediaries through smart contract-based peer-to-peer token swaps. Utilizing Ramses v3 technology, which powered DEXs like Shadow (Sonic) and Pharaoh (Avalanche) to process $40 billion in trading volume and $60 million in fees, Etherex introduces a MetaDEX philosophy with REX tokenomics, distributing 100% of fees to xREX voters and 100% of emissions to liquidity providers. Secured by over $1 million in audits, Etherex enters a competitive $410 billion DEX spot trading market. This article provides a comprehensive overview of Etherex’s features, tokenomics, security, and market context.

Linea’s New DEX Etherex

Etherex is the next-generation evolution of Nile Exchange, a Layer-2-native DEX launched on Linea in early 2023. Branding itself as the “most decentralized exchange,” Etherex enables fully on-chain, permissionless spot trading of crypto assets on Linea’s zkEVM. Peer-to-peer token swaps are executed entirely via smart contracts, eliminating off-chain order books and custodial intermediaries.

Unlike Nile’s ve(3,3) framework, Etherex adopts Ramses v3, an advanced automated market maker (AMM) engine known for powering high-volume DEXs like Shadow (Sonic) and Pharaoh (Avalanche), which collectively processed $40 billion in trading volume and $60 million in fees. Etherex’s MetaDEX philosophy combines on-chain trading infrastructure with user-driven governance, focusing on sustainable liquidity pools aligned with stakeholder interests rather than yield farming exploits. Its native token, REX, is distributed immediately to liquidity providers as liquid rewards with no vesting delays, with Linea/Consensys holding 25% of the supply (80% in xREX, 20% in liquid REX).

 

Etherex: A Storied History

Etherex represents the culmination of months of building, testing, and exploring by the Linea and Nile teams to create a user-aligned decentralized exchange. It draws inspiration from a 2014 vision, before Ethereum’s mainnet launch, when founders like Vitalik Buterin and Joseph Lubin sought a decentralized exchange to counter centralized control over trading pairs, prices, and access. This vision birthed EtherEX, intended as Ethereum’s first DEX with the mantra: “A Decentralized Future Calls For A Decentralized Exchange.” Although EtherEX never launched due to unspecified challenges, Etherex builds on this legacy, enabling permissionless on-chain swaps without centralized entities.

About Etherex

Etherex evolves Nile Exchange on Linea, incorporating Ramses v3 technology known for its successful tokenomics and incentive structures, as seen in Shadow (Sonic). With 100% of fees and incentives distributed to token holders and no team unlocks, Etherex prioritizes user alignment. The Linea and Etherex partnership follows a MetaDEX methodology, scaling Linea’s ecosystem long-term by focusing on ETH and stablecoin liquidity. This approach directs incentives to host $LINEA liquidity and emissions to pools beneficial to the ecosystem. The native token, $REX, supports xREX and REX33 models, detailed below.

How Etherex Works

Etherex uses a locked token holder (xREX) directed emissions model with anti-dilution rebases to maximize holder revenue and provide effective liquidity. Token holders vote on pairs earning the most fees or incentives, rewarding those pools with $REX emissions. Unlike legacy DEXs that leak value, the $REX token (locked as xREX) captures and redistributes value to participants, offering higher, sustainable rewards. Liquidity providers earn liquid $REX tokens, competing to provide low-slippage trade routes, which increases fees for token holders, reinforcing a virtuous cycle.

Etherex differs from predecessors through:

• xTOKEN exit mechanics: Allowing instant exits from voting positions.
• Liquid emissions, no vesting: Rewards are available from day one, unlike 4-year lockups in other DEXs.
• Highest consistent yields: Maximizing returns for liquidity providers.
• REX33: A liquid staking solution for xREX, enabling instant voting power trades.

Why Etherex Stands Out in DeFi

Etherex distinguishes itself in the DEX landscape through its alignment with Ethereum’s vision, advanced technology, and user-centric tokenomics. Below are its core strengths:

• Realization of Ethereum’s 2014 Vision: Etherex fulfills the EtherEX concept from 2014, envisioned by Vitalik Buterin and Joseph Lubin to eliminate centralized exchanges’ control. By enabling fully on-chain, permissionless spot trading via smart contracts on Linea’s zkEVM, Etherex removes off-chain order books and custodial intermediaries, ensuring a trustless environment aligned with Ethereum’s decentralized ethos, unlike centralized platforms like Binance.
• Ramses v3 Technology for Scalability: Built on Ramses v3, a Uniswap v3-based AMM, Etherex leverages concentrated liquidity to minimize slippage and optimize efficiency. Having powered Shadow (Sonic) and Pharaoh (Avalanche) to process $40 billion in volume and $60 million in fees, Ramses v3 includes dynamic system fees and x(3,3) tokenomics, surpassing Nile’s ve(3,3) framework, ensuring low-cost trades and high yields.
• MetaDEX Philosophy for Sustainable Liquidity: Etherex’s MetaDEX methodology prioritizes long-term ecosystem health over yield farming exploits. By distributing 100% of fees to xREX voters and 100% of emissions to liquidity providers via REX tokens, it aligns incentives with stakeholders. For example, xREX holders can vote to boost ETH-LINEA pools, ensuring liquidity for Linea’s $LINEA TGE, unlike PancakeSwap’s less community-driven models.
• Liquid Rewards with No Vesting: Etherex offers liquid REX tokens from day one, eliminating vesting delays common in DEXs like Uniswap (e.g., 4-year lockups). The REX33 model allows conversion to xREX for instant voting power, enabling dynamic participation for traders, liquidity providers, and institutions.
• Community-Driven Governance: The xREX model empowers token holders to direct emissions to high-performing pools, ensuring sustainable liquidity. With no team unlocks, Etherex prioritizes user alignment, redistributing 100% of fees to voters, unlike legacy DEXs where value leaks to external parties.

Etherex Token Start State

The Linea and Nile teams designed Etherex’s token model to drive volume and value to loyal Linea users. veNILE holders receive a significant allocation to ensure community benefit, in partnership with Consensys and Linea. The launch allocation is:

• 25% to Linea/Consensys: 80% in xREX tokens (locked for voting), 20% in liquid $REX, balancing Consensys’ influence with community control.
• 25% to veNILE Migrators: 100% in xREX tokens, rewarding early Nile users with voting power.
• 15% to LP Treasury Support: Funds liquidity incentives for pools like ETH-LINEA.
• 5% to CEX Listings and Market Makers: Supports REX trading on centralized exchanges.
• 5% to Linea Ecosystem Investment Partners: Enhances integration with projects like Foxy and Efrogs.
• 25% to Etherex Treasury: Reserved for development, audits, and incentives.

Battle-Tested Technology

Etherex’s Ramses v3 Core, based on Uniswap v3, provides robust security with enhancements like dynamic system and protocol fee mechanisms and x(3,3) tokenomics. Ramses v3 DEXs, including Shadow (Sonic) and Pharaoh (Avalanche), have handled $40 billion in volume and earned $60 million in fees, demonstrating scalability and reliability for Etherex’s trading infrastructure.

Audits

Etherex’s Ramses v3 Core is secured by over $1 million in audits and competitions, highlighting its commitment to user security:

• Spearbit: Audited Shadow’s x(3,3) model cantina.xyz/portfolio/98695d75-ee7d-4e1c-aa96-6379f73c5b2c.
• Consensys Diligence: Audited Ramses v3 CLMM diligence.consensys.io/audits/2024/08/ramses-v3.
• Code4rena: Conducted Ramses v3 CLMM contest.
• 100Proof: Specialized testing via C4rena.
• Zenith Mitigation: Post-competition CL audit.
• yAudit: Private development review.
• Spearbit Researchers: Additional testing review.

DEX Market Trends

Decentralized exchanges (DEXs) account for 25% of global spot trading volume, totaling $410 billion, with $15.591 billion processed in the past 24 hours as of July 2025. PancakeSwap leads with $392.6 billion in volume, holding ~45% market share. Uniswap, a liquidity and innovation leader, processes $3.3 billion daily with 19–23% market share. Raydium and Solana-based DEXs have gained traction in memecoin trading, driven by Solana’s higher DEX volume in some weeks. In derivatives/perpetual DEXs, Hyperliquid dominates with over 80% market share. Etherex must innovate in this competitive landscape, leveraging Ramses v3 and Linea’s $LINEA TGE.

Launch Date

Etherex will launch on July 28, 2025, with its first epoch starting days later. This timing aligns with Linea’s $LINEA TGE and partnerships with SBET, the largest corporate ETH holder, maximizing incentive opportunities for protocols and users.

Getting Started with Etherex

• Configure Wallet: Set up MetaMask with Linea’s details: Network (Linea), RPC rpc.linea.build, Chain ID (59144), Currency (ETH).
• Bridge Assets: Use Linea’s Canonical Message Service to transfer ETH or stablecoins.
• Provide Liquidity: On etherex.build, deposit into pools (e.g., ETH-USDC) to earn liquid REX tokens.
• Trade Tokens: Execute permissionless spot trades via smart contracts.
• Govern: Convert REX to xREX to vote on pool emissions, earning 100% of fees.
• Monitor Rewards: Track REX and xREX via Etherex’s dashboard.

Conclusion

Etherex, launching on July 28, 2025, on Linea, fulfills Ethereum’s 2014 vision with permissionless spot trading via Ramses v3, processing $40 billion in proven volume. With $1 million+ in audits, REX33 tokenomics, and 100% fee distribution, Etherex competes in a $410 billion DEX market. Its MetaDEX philosophy and Linea integration position it to capture liquidity, leveraging $LINEA TGE and SBET partnerships.