vertex

Preface According to the #DeFiLlama data platform, since November 23, the transaction volume and TVL of #Vertex have increased dramatically. The transaction volume once became the second-ranked on-chain perpetual contract platform (the first is dYdX), and it is quite possible to catch up with dYdX. potential. Why has Vertex grown so rapidly in terms of transaction volume and TVL in a short period of time? What is so innovative and attractive about Vertex? Let's take a look. 1. Project introduction: Vertex is a decentralized derivatives protocol on #Arbitrum , with spot, perpetual and comprehensive currency markets. The vision is to trade like a CEX and self-custody like a DEX. It was once a decentralized foreign exchange platform on the Terra chain. After the collapse of Terra in May 2022, it was migrated to Arbitrum as a DEX and developed three types of products: spot trading, futures trading and lending market. Agreement profit model: collecting transaction fees to generate agreement income. Financial incentives to provide liquidity to market makers. Moderate speculation and manipulation on specific trading pairs. Official website: https://vertexprotocol.com/ 2. Products and innovation: Products: Spot trading market: All spot assets are quoted in USDC. On Vertex, users always retain ownership of spot assets on the chain. Perpetual contracts market: Traders can go long or short crypto assets with up to 10x leverage, using USDC as primary collateral, and a cross-margin system can leverage other spot assets to support perpetual positions. Lending Market: Users can automatically borrow spot assets using their portfolio margin to obtain loans. Smart contracts for the lending market are on-chain (for example, on Arbitrum). Innovation: Hybrid design of order book + AMM: At the protocol level, the exchange and risk engine on the chain are integrated, and an off-chain sequencer is configured to form a hybrid order book + AMM DEX. Includes spot, perpetual contracts and currency markets – controlled by Vertex Protocol smart contracts on the Arbitrum layer. Three key elements: A fully on-chain exchange (constant product AMM) – protocol level. A risk engine entirely on-chain — at the protocol level. Off-chain sequencer for order matching. Cross Margin Mode: By default, Vertex is fully margined, and the user’s portfolio will be used as collateral for multiple open positions.Vertex V1 does not currently support isolated margin, and Vertex V2 will add the isolated margin function of perpetual contracts for users to choose. Subaccounts: Traders can isolate the risks associated with individual positions by opening new subaccounts. Use multiple oracles to feed prices: Currently, the Stork oracle is mainly used. Going forward, Chainlink’s high-fidelity sub-second market data will work with Stork to help support market-enabled clearing, funding rates, and profit and loss calculations. Stork is an ultra-low-latency, decentralized hybrid oracle network for EMV-compliant quotes. Powering Vertex through its hybrid on-chain/off-chain architecture unlocks the ability to perform initial processing off-chain. Competitive trading fees: Offers cheap trading fees (0.02%) for taker users, and zero fees for place orders for spot and perpetual contracts on major currency pairs such as BTC/USDC and ETH/USDC. Compared with DYDX and GMX, Vertex has lower handling fees and is more competitive. One-Click Transaction 1CT: Enables users to sign an approval transaction at the beginning without the need for subsequent approval signatures, an experience similar to CEX where users can log in (sign the approval transaction) and start trading without having to sign every transaction they make. More innovations will be launched in V2! 3. Community and data: Social media: Twitter: https://twitter.com/vertex_protocol, 84.3K followers Discord: https://discord.com/invite/berachain, 28.8k members, 2.2k online protocol data: total transaction volume : $45.21b, of which the perpetual contract is $41.21bTVL: $45.3M24h trading volume: $242.87M users: 20,61524h trading fees: $49.26k Average daily user volume in the past month: 500–600 Data source: https://stats .vertexprotocol.com/ You can currently participate in the 6+ year continuous incentive plan of the protocol itself and the short-term incentive plan (STIP) of 3 million ARB tokens provided by Arbitrum DAO. 4. Economic model: VRTX total supply: 1B, no additional issuance. 90.85% of these tokens will be released within 5+ years. Distribution: Ongoing Incentives: 34.0% (340 million VRTX) Initial Token Phase: 10.0% (100 million VRTX) Initial Token Phase includes the first 7 periods of the Vertex Trade & Earn rewards program, which launches in April 2023 , and ends on November 8, 2023.10.0% of the VRTX supply designated for the initial token phase is a one-time distribution of VRTX tokens – which early Vertex users can accrue as trading rewards. Early Investors: 8.8% (88 million VRTX) Early investors include participants in Vertex’s $8.5 million seed round raised starting in 2022. Initial VRTX Liquidity (LBA): 1.0% (10 million VRTX) Initial VRTX liquidity is 1.0% of the VRTX token supply unlocked at Genesis and is designated as a reward for Vertex LBA participants. Future contributors: 5.0% (50 million VRTX) Future contributor allocation is a reserve for future team growth. Once vested, it will be placed into the protocol vault for potential use, but will not necessarily enter circulation. VRTX tokens allocated to the Future Contributor category do not begin to vest until Year 2. Ecosystem: 9.0% (90 million VRTX) Ecosystem development allocation includes a reserve of VRTX tokens that support Vertex’s long-term ecosystem growth. On Genesis, 1% of the VRTX allocation for ecosystem development is unlocked (10 million VRTX). The remaining 8% of VRTX tokens are earmarked for ecosystem development, with a linear release of 2.67% per year from Year 1 to Year 3. Advisor: 0.5% (5 million VRTX) 0.5% of the total VRTX supply, and will be released starting in year 1. Will be used for third-party services that provide long-term benefits to the growth, security, and sustainability of the Vertex protocol — including but not limited to code audits and bug bounties. Protocol Vault: 11.7% (117 million VRTX) 5% of the total VRTX supply (50 million VRTX) will be unlocked to the protocol treasury, with the remainder released linearly from year 1 to year 3. Founding Team: 20.0% (200 million VRTX) The schedule for team allocation is roughly to be released within 2–3 years after the mainnet launch in April 2023. Monthly release details can be seen here: https://docs.google.com/spreadsheets/d/1iLKBY7uoiYpa7lVzYuCK6HRCOJw-u4mnUR1CcD_OW3s/edit#gid=639807660VRTX staking voVRTX User Score: Multiple incentive mechanisms will be introduced to allow active participants Get rewarded with VRTX tokens. Increasing the voVRTX score increases the number of incentives. USDC rewards: USDC is awarded based on the user’s voVRTX score, and USDC comes from the protocol revenue. The insurance fund pledge (USDC) rewards the liquidation profits of the insurance fund pool (if there is a surplus) to further increase the voVRTX user score, thereby obtaining more VRTX pledge rewards 5. Financing and team: Financing: 2022–4: Vertex Protocol completes US$8.5 million Seed round financing, investors include Hack VC, Dexterity Capital, Jane Street, Hudson River Trading, etc.2023-6-22: Received strategic investment from Wintermute Ventures, the specific amount has not yet been disclosed. Team: Alwin Peng: Co-founder, former Software Engineer at Jump Trading Darius Tabatabai: Co-founder, former Head of Trading at JST Capital with 20 years of trading experience in options, commodities and FX. BSc Government and Economics from the London School of Economics and Political Science. Conor McNamee: Head of Product, former Business Development and Operations Manager at Eterna Capital. Graduated from the University of Western Ontario, Canada and City University of Hong Kong. SJ Park: Head of Strategy. He has 10 years of trading experience in rates and credit and was a former Goldman Sachs portfolio manager. Jeff Blockinger: General Counsel with 25 years of experience specializing in securities, investment funds, fintech, blockchain, cryptocurrency and regulatory matters. Also currently General Counsel of Quadrata. 6. Summary: Vertex is a vertically integrated DEX that aggregates spot, perpetual contracts and currency markets into a unified trading platform. Trade with lightning speeds, universal cross margins and a user-friendly trading interface. Vertex integrates the advantages of DEX and CEX, enabling both self-custody of DEX and fast transactions like CEX. Different from dYdX (off-chain order book) and GMX (on-chain liquidity pool solution), Vertex uses a hybrid order book + AMM to implement spot and perpetual contract transactions. With products with CEX and DEX advantages and an ongoing trading incentive program (340 million VRTX), Vertex's trading volume and TVL have been steadily rising. In the field of derivatives, there is currently no monopoly overlord, and Vertex is expected to compete for a place among them. Currently, dYdX, GMX, and APEX, which has surged tenfold recently, each have their own advantages. Only protocols that provide safe, reliable, smooth transaction experience and low slippage and low transaction fees are likely to gain users for a long time, and allocating protocol income to token pledgers is an important aspect that can firmly attract users. From the perspective of market value, DYDX has a market value of $990M, GMX has a market value of $385M, and Vertex has a market value of $44M. Based on the transaction volume, they are underestimated. From a profit perspective, the transaction volume is high, but the transaction fee rate is very low, the daily fee income is relatively low (about $50K), and the income distributed to currency holders is also relatively small.Fortunately, the official incentive activities can make up for this. In addition, according to official disclosures, the Vertex V2 version will have more optimizations and innovations. We look forward to Vertex bringing us more surprises! #内容挖矿 SANYUAN Labs is a DAO-driven venture capital institution focused on investing in Web3.0, DeFi and AI. Twitter: https://twitter.com/SanyuanCapitalTelegram: https://t.me/TernaryCapital