Claim $500Vertex Protocol: A Next-Generation DEX with a Unique Token Launch
As more and more projects vie for the interest and liquidity of the cryptocurrency community, the decentralized exchange market is growing more and more congested and competitive. But not every DEX is made equal, and some have greater benefits than others. We are discussing the Vertex Protocol, a brand-new DEX that seeks to give every trader, regardless of size or skill level, the greatest possible trading experience.
We will also explain how Vertex is launching its native token, VRTX, through a novel mechanism called the Liquidity Bootstrapping Auction (LBA), which ensures a fair and transparent distribution of the token. Let’s begin!
What is the Vertex Protocol ?
Vertex Protocol is a cross-margin DEX that offers spot, perpetuals, and an integrated money market bundled into one vertically integrated application on Arbitrum, a leading layer-2 scaling solution for Ethereum. Vertex combines the best features of both orderbook and automated market maker (AMM) models, offering traders the flexibility and efficiency of universal cross margin accounts, the speed and accuracy of a lightning-fast order matching engine, and the liquidity and convenience of an AMM pool.
The performance, security, and usefulness of Vertex are intended to surpass those of its competitors. Vertex’s salient characteristics include a few of these:
⦁ Lowest fees on the market: Vertex charges only 0.02% – 0.04% for takers and 0% for makers on both spot and perp markets, making it the most affordable crypto exchange for traders.
⦁ Lightning-fast execution: Vertex boasts an order matching speed of ~30 milliseconds, which is comparable to centralized exchanges (CEXs) and much faster than other DEXs.
⦁ No MEV: Vertex eliminates the risk of miner extractable value (MEV), which is a form of front-running that exploits the ordering of transactions on blockchains. Vertex achieves this by using Arbitrum’s sequencer, which batches transactions into blocks and submits them to Ethereum in a deterministic order.
⦁ Customizable interface: Vertex offers a user-friendly and intuitive interface that can be customized to suit different trading preferences and styles. Users can choose from various layouts, notifications, risk management signals, and more.
How can I obtain VRTX and what does it involve?
VRTX is the utility token of Vertex Protocol. There will only be 1 billion total VRTX.
Staking VRTX generates voVRTX, a non-transferable user metric which signals long-term commitment and participation in the exchange. voVRTX scores will be used to determine rewards to users. Over extended durations, users who demonstrate a long-term commitment to the protocol, measured by the voVRTX score, are eligible to receive rewards derived from a percentage of the protocol’s revenue.
Up to 50% of all trading fee revenue generated by Vertex in a single epoch, excluding sequencer fees, will be allocated to the Protocol Treasury and used as rewards. Users may also get rewards for supporting the insurance fund by staking their USDC.e to earn a portion of liquidation revenue. In either case, rewards are disbursed to users based on their long-term participation and commitment to Vertex, as determined by their voVRTX score.
Introducing the VRTX Liquidity Bootstrapping Auction (LBA)
VRTX is launching soon through Vertex’s Liquidity Bootstrapping Auction (LBA), which bootstraps the liquidity and initial price discovery of VRTX. The LBA allows users to bid for VRTX using USDC.e (USDC bridged into Arbitrum) over a 7-day period beginning November 13.
With an LBA, the price is determined more naturally over a certain length of time. In contrast, traditional pool-based launches tend to establish the token price at launch, which heavily favors traders who are using bots.
The LBA differs from more conventional pool-based token releases in the following ways:
- There is an extended time frame for price discovery.
- 2 Liquidity Pools (VRTX pool and USDC.e pool) Are merged into a single conventional pool after at the conclusion of the LBA
- During the LBA, liquidity providers for the USDC.e side may freely withdraw or deposit more liquidity
Everyone has the chance to participate in this launch process and receive incentives through the Vertex LBA. While only traders who have earned VRTX rewards for trading on Vertex are eligible to deposit VRTX liquidity, anyone can deposit or withdraw their USDC.e liquidity. Liquidity providers earn a share of protocol rewards along with the LP fees from the pool.
How to participate in the LBA
The LBA is scheduled to start on November 13, 2023, and end on November 20, 2023.
- In order to facilitate more gradual price discovery and assist in determining a reasonable market price for the VRTX token, the LBA will operate for seven days.
- Up to Day 5 of the auction, users may contribute $USDC.e and/or $VRTX trading incentives.
- The original Vertex VRTX-USDC.e pool will be seeded with LP money from the LBA.
- Ten million VRTX, or 1% of the total token supply, will be distributed as LP incentives to auction participants.
- The 120-day lock-and-vest period for the LP capital provided to the LBA will be linear. Participating LPs will get dual benefits in the form of VRTX incentives and pool fees in exchange.
The Vertex LBA will take place in two main phases. Every level has a distinct function and workings.
Phase 1: The Seven-Day Bid
Phase 2: Launch of the VRTX Token and Liquid Claiming
Phase 3: VRTX Tokenomics & Post-LBA Vesting
For more details on getting involved in the Vertex LBA, please see: https://blog.vertexprotocol.com/how-to-participate-in-the-vertex-lba/
Conclusion
Vertex Protocol is a next-generation DEX that offers a superior decentralized trading experience. It has the lowest fees and the best capital efficiency out of any crypto exchange. Vertex is the first DEX that successfully combines spot, perpetual, and money markets into a single platform. By participating in the Vertex LBA, users have the unique opportunity to get involved with this exciting new DEX that is pushing the boundaries of DeFi.
Please see Vertex Protocol’s Statement of Risks to understand the risks of crypto trading: https://vertex-protocol.gitbook.io/docs/more/statement-of-risk
