Vertex Protocol launches high speed spot/derivatives trading venue on Arbitrum
Vertex Protocol (Vertex), a decentralized exchange for digital asset spot and derivatives trading, announced earlier today that it has launched to the public, enabling market participants of all types and sizes to trade on an Arbitrum-based DEX.
Vertex’s unique offering brings together multiple market structures into one. The combination of a performant off-chain orderbook layered on top of an on-chain automated market maker (AMM) on a decentralized, self-custodial exchange delivers the benefits of a centralized exchange (CEX) without the drawbacks.
All users can take advantage of Vertex’s integrated money market, borrowing, and lending wBTC and ETH with a spot margin that enables efficient capital deployment across cross-margined accounts.
“When setting out to build Vertex, we put together a team of traders and other financial industry veterans to create a robust, best-in-class venue,” said Vertex Protocol co-founder Darius Tabatabai.
“Vertex is the realization of more than a year’s worth of market research and development work, and we couldn’t be more excited to bring it to life at such an important time in the growth cycle of the digital asset industry.”
An evolving marketplace
This launch comes as CEXs face increasing scrutiny from users that have become wary of centralized custody, and not long after research found that non-custodial wallet users grew significantly last year, and are expected to continue growing through the rest of the decade to reach nearly $50 billion in total assets by 2030.
As users increasingly use decentralized finance (DeFi) protocols, a market expected to grow more than 40 percent each year through the end of the decade to reach more than $230 billion in revenue by 2030, Vertex hopes to play an increasingly important role in the financial system of the future.
“Individuals and businesses are increasingly looking at DeFi as an alternative to the flawed centralized exchange model,” Tabatabai added. “ We believe Vertex offers a viable alternative with similar liquidity and speed, along with better capital efficiencies than incumbent options currently available.”
Setting a new bar
Arbitrum, a Layer 2 solution for the Ethereum network, is currently the fastest-growing blockchain in Total Value Locked (TVL). This launch comes at a time when adoption has hit an all-time high, with Arbitrum recently surpassing Ethereum in terms of daily transaction volumes.
“Vertex has quickly established itself as a leader in the DeFi landscape,” said AJ Warner, chief strategy officer at Offchain Labs. “Bringing the exchange onto Arbitrum allows Vertex access to our world-class technology and will hopefully see the exchange scale in size very quickly. We’re excited for our community to explore their platform and look forward to supporting Vertex as they scale.”
Building Vertex on Arbitrum and using an off-chain sequencer for the order book has enabled the venue to achieve between 10,000 – 15,000 transactions per second at an order-matching latency of 10-30 milliseconds, a speed that rivals leading centralized venues and surpasses any currently available DEX.
Vertex counts Jane Street, Dexterity Capital, Hudson River Trading, GSR, Collab+Currency, JST Capital, Big Brain, and Lunatic Capital among its early backers, and is primed to fast become a leader in the DeFi category through the rest of this year and beyond.
About Vertex Protocol
Vertex Protocol was established by a team of traders and engineers with a track record of business building in both TradFi and DeFi markets. They saw the latent market need for users to interact with DeFi in a more flexible way and decided to leverage the growing ecosystem on the Arbirtrum blockchain to bring a trading protocol to market.
Today, they are excited to be at the forefront of smart contract and market innovation for Arbitrum and to help partner with some of the most exciting names in crypto to build a DeFi protocol that works for all users.
To learn more about Vertex Protocol, please visit www.vertexprotocol.com and/or go to the following:
Discord community: https://discord.gg/xRdut3NyG3
Public docs: https://vertex-protocol.gitbook.io/vertex-protocol/getting-started/vertex-overview
Principal, Gorman Strategies
Disclaimer: This is a paid post and should not be treated as news/advice.