Vertex Protocol

price
change

Discover Vertex Protocol's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Vertex Protocol?

Vertex Protocol (VRTX) is a decentralized exchange (DEX) operating on the Arbitrum network. It aims to bridge the gap between centralized exchange usability and decentralized platform self-custody and transparency. The platform features a unique hybrid order book and automated market maker system, ensuring fast order matching and low fees. The native token, VRTX, serves as a governance token, allowing holders to participate in decision-making processes and earn rewards through staking. The token also provides discounts on trading fees and incentivizes long-term participation in the ecosystem.

How is Vertex Protocol used?

The crypto Vertex Protocol (VRTX) is used in several ways within the Vertex ecosystem:

  1. Governance Facilitation: VRTX is the governance token of Vertex, allowing holders to participate in the decentralized governance model. This means that users have a say in the changes and updates made to the platform.

  2. Revenue Sharing: VRTX holders can earn a portion of the protocol's revenue, providing a financial incentive for users to engage with the platform.

  3. Discounts on Trading Fees: Holding VRTX also grants users discounts on trading fees, making transactions more cost-effective.

  1. Staking: The stakeable version of VRTX, xVRTX, can be used to back up the insurance fund on the DEX or locked for a period of two weeks in a staking contract, earning a passive yield for the holder.

  2. Voting: A platform-exclusive spinoff of VRTX, voVRTX, is used in the voting process of the governance model, ensuring that token holders have a voice in the platform's development.

These use cases provide a comprehensive framework for users to engage with and benefit from the Vertex Protocol.

How do I store Vertex Protocol?

You can store your Vertex Protocol (VRTX) tokens safely on your Bitget account or on the Bitget crypto wallet app, BG Wallet, which is a user-friendly and secure mobile wallet.

How to buy Vertex Protocol?

To buy Vertex Protocol (VRTX) tokens, follow these steps:

  1. Create an Account: Open an account on a cryptocurrency exchange that supports VRTX, such as Gate.io.

  2. Complete KYC & Security Verification: Complete the Know-Your-Customer (KYC) and security verification process to ensure your account is secure and compliant with regulatory requirements.

  3. Fund Your Account: Deposit fiat currency or other cryptocurrencies into your exchange account to use for purchasing VRTX.

  1. Navigate to VRTX Market: Go to the VRTX market on the exchange, such as the VRTX-USDC.e market on Vertex.

  2. Enter the Amount: Enter the amount of VRTX you wish to buy, either in terms of VRTX or the equivalent USDC.e value.

  3. Confirm the Transaction: Review the details and confirm the purchase. If you have One-Click Trading enabled, the transaction will be executed immediately. Otherwise, you will need to sign the transaction in your wallet.

  1. Store Your VRTX Safely: After purchasing, consider transferring your VRTX to a cold wallet, such as a hardware wallet or a paper wallet, for long-term storage and security.

By following these steps, you can successfully buy and manage your Vertex Protocol (VRTX) tokens.

Discover
Vertex Protocol
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

History of Vertex Protocol

The history of Vertex Protocol (VRTX) began with its inception on the Arbitrum network. The protocol was designed to provide an all-in-one decentralized exchange (DEX) experience, offering trading, earning, and borrowing capabilities powered by a high-performance trading engine. This engine aimed to outperform competitors by providing lightning-fast orderbooks, cross-chain liquidity, and competitive fees.

Vertex Protocol's utility token, VRTX, was launched in October 2023. The token plays a crucial role in the ecosystem, incentivizing long-term participation and rewarding users for their contributions to the protocol's growth and development. Users can stake VRTX to earn protocol rewards in USDC, and the token's utility extends to various aspects of the DEX, including staking, rewarding, and providing a user score known as voVRTX.

The protocol's journey was marked by significant milestones, including the Vertex Protocol liquidity bootstrapping auction (LBA) for the VRTX token, which took place from November 13th to 20th. This event marked a crucial step in the token's distribution and adoption.

The total supply of VRTX tokens is capped at 1 billion, with 90.85% of tokens distributed over a period of five years. The token's distribution is structured to incentivize long-term commitment and participation in the protocol, with allocations for the founding team, advisory services, and community rewards.

Overall, Vertex Protocol has positioned itself as a leading DEX on Arbitrum, offering a comprehensive trading experience and a robust token economy designed to foster growth and engagement within its community.

Discover
Vertex Protocol
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

How Vertex Protocol works

Vertex Protocol is a decentralized exchange (DEX) built on the Arbitrum network. It aims to bridge the gap between centralized exchange usability and decentralized platform self-custody and transparency. Here's how it works:

Hybrid Orderbook-AMM Design

Vertex combines the best of both worlds by integrating an on-chain trading venue and risk engine with an off-chain sequencer. This hybrid design ensures transparency and self-custody through on-chain components while providing lightning-fast order matching through the off-chain sequencer. The on-chain automated market maker (AMM) contributes to liquidity alongside an orderbook, ensuring trades are executed at the best available price. This design reduces gas fees compared to Ethereum L1 and offers lower slippage and higher transaction speeds.

Three Core Products

Vertex offers three core products:

  1. Spot Markets: Users can buy and sell crypto assets for immediate delivery and payment, retaining custody of their spot assets on-chain.
  2. Perpetual Markets: Perpetual futures contracts allow users to speculate on price movements without owning the assets, with leverage up to 10X.
  3. Money Market: Users can borrow and lend in a decentralized manner, earning interest on idle assets or borrowing against their portfolio margin.
VRTX Token and Governance

The native utility token, VRTX, incentivizes long-term commitment to the ecosystem. Users who stake VRTX, participate in marketing, use Vertex, or refer friends and family can receive rewards in VRTX tokens. The voVRTX token score enhances this incentive structure by multiplying rewards based on the duration of staking VRTX. This secondary token can be received by staking VRTX.

Tokenomics and Incentives

VRTX is designed to boost long-term engagement, promote active participation, and reward contributors. The tokenomics of VRTX promotes long-term involvement and growth, giving users clear incentives to contribute to and benefit from the ecosystem’s evolution.

Cross-Chain Liquidity and Layer 2 Solutions

Vertex utilizes Layer 2 solutions on the Arbitrum network to improve transaction efficiency, making it appealing to a wide range of users. The platform also integrates Chainlink Data Streams for fast, accurate, and secure price feeds, enhancing platform responsiveness and user experience.

Community Engagement and Development

Vertex has launched a "Buyback & Stake Program," committing to use a portion of its trading revenue to buy back and stake VRTX tokens. This program aims to strengthen community-led development and ensure financial stability by reinvesting staking rewards back into further staking efforts.

Overall, Vertex Protocol offers a unique blend of decentralized and centralized exchange features, providing users with a fast, secure, and user-centric trading experience.

Discover
Vertex Protocol
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

Vertex Protocol's strengths

The token Vertex Protocol (VRTX) has several strengths that contribute to its utility and value within the Vertex ecosystem:

  1. Incentivizing Long-term Commitment: VRTX rewards users for their long-term participation and contributions to the protocol, encouraging commitment to the health and development of the ecosystem.

  2. Staking and Security: Staking VRTX enhances the safety of the Vertex ecosystem, and users receive rewards based on their staking activities. This staking mechanism also generates a user score, known as voVRTX, which further incentivizes security and long-term commitment.

  3. Multi-Functional: VRTX serves multiple purposes, including staking, rewarding contributions, and facilitating transactions within the Vertex protocol. This multi-functionality makes it a versatile and valuable token.

  1. Fixed Supply: The total supply of VRTX tokens is capped at 1 billion, ensuring that no additional tokens will be introduced once the distribution is complete. This fixed supply can help maintain the token's value and prevent inflation.

  2. Decentralized Trading: Vertex Protocol combines the benefits of decentralized exchanges (DEX) and centralized exchanges (CEX), offering users a hybrid orderbook-AMM design that ensures transparency, self-custody, and fast order matching.

These strengths collectively contribute to the token's utility and value within the Vertex ecosystem, fostering a robust and sustainable environment for users.

Vertex Protocol's risks

Vertex Protocol (VRTX) carries several financial risks that users should be aware of:

  1. Staked Capital Risk: Up to 100% of holdings may be eligible for liquidation if the Insurance Fund is drained as a last resort.

  2. No Shareholding or Ownership: VRTX tokens do not represent any shareholding, ownership, or financial interest in Vertex Protocol or its affiliates. They are solely for use within the protocol and do not entitle holders to fees, dividends, or investment returns.

  3. No Refund or Exchange: VRTX tokens are non-refundable and cannot be exchanged for cash or other digital assets.

  1. Market Volatility: The secondary market pricing of VRTX is not dependent on the effort of the Vertex team, and there is no token functionality designed to control or manipulate such pricing.

  2. Regulatory Risks: Vertex Protocol is not authorized or regulated by financial authorities like the Financial Conduct Authority (FCA) or any other regulatory bodies.

  3. Insurance Fund Risks: Staking in the Vertex Insurance Fund carries risks, including the potential for socialized losses during periods of extreme volatility.

These risks highlight the importance of understanding the terms and conditions of using VRTX tokens and participating in the Vertex Protocol ecosystem.

Discover
Vertex Protocol
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

Did Vertex Protocol raise funds?

Discover
Vertex Protocol
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

Vertex Protocol’s team

  • Darius Tabatabai: Co-founder of Vertex Protocol, involved in building the on-chain forex market on the Terra blockchain before transitioning to Arbitrum.
  • Alwin Peng: Co-founder of Vertex Protocol, worked alongside Darius Tabatabai to develop the hybrid orderbook-AMM DEX.

Whalee AI

The fundamental analysis assistant for crypto value investors.

Vertex Protocol NEWS REPORT

Latest news

Want an analysis of Vertex Protocol? Tell us on discord.

Similar tokens

Help us improve!
Tell us what you think of this page and which features you would like to see next.
OPEN FORM