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While decentralized exchanges (DEXs) offer multiple benefits, such as not requiring KYC and a centralized intermediary, they’re often criticized for their complexities that can hinder user adoption. Many recently developed DEXs, such as ApeX Pro, have aimed to resolve this issue by marrying the best DEX and centralized exchange (CEX) features in various ways.
Vela Exchange is yet another decentralized trading exchange that offers a seamless and user-friendly trading experience (like a CEX) while enabling users to trade assets in a decentralized manner, without compromising on the speed or security of their transactions. Let's dive in to learn how Vela achieves this. Key Takeaways:
Vela Exchange is a next-generation decentralized exchange (DEX) that combines the best features of DEXs and CEXs, offering a seamless trading experience while maintaining the benefits of decentralized asset trading.
Vela Exchange introduces innovative features, such as One Click Trading (1CT) and on-chart trading, enhancing user convenience and risk management capabilities.
The VELA token powers the Vela Exchange ecosystem, providing utility and allowing users to earn fee discounts and rewards by staking and participating in the platform's activities.
Vela Exchange is an Arbitrum-based hybrid decentralized exchange for perpetual trading, with plans to expand into the spot market. Originally known on Ethereum as Dexpools (with the token ticker DXP), the exchange was designed as a decentralized over-the-counter (OTC) trading-only platform. In October 2022, it relaunched under the name Vela Exchange and renamed its token VELA, expanding to include perpetual trading.
Vela Exchange supports three transaction types: cryptocurrency, foreign exchange (forex) and precious metals. Users can take advantage of high-leverage trading of up to 250x to optimize their returns, and hold self-custody of all their assets traded on this platform.
Some of the features that give it superiority over typical DEXs include One Click Trading (1CT) wallet, which allows users to trade multiple transactions at once simply by funding the wallet, and on-chart trading, which enables traders to set their orders directly on the chart. It even eases the risk management process by allowing traders to set advanced positions, such as trailing stop and limit orders, through simple triggers and instantaneous implementations.
Another unique aspect of Vela Exchange is Multichain Deposit, which allows you to swap any type of supported tokens on seven EVM chains — Ethereum, Polygon, Optimism, Avalanche, BNB Chain, Fantom and Moonbeam.
The native utility token of the Vela Exchange is VELA, which can be purchased through major CEXs such as Bybit, as well as DEXs like Uniswap and Balancer. You can also earn VELA by providing liquidity and vesting esVELA, which is an escrow token that serves as a representation of staked VELA. The token is used to distribute VELA staking rewards, and cannot be exchanged or transferred. In addition, Vela Exchange has a stablecoin, VLP, which can be minted to act as collateral for leveraged trades on the platform.
Vela Exchange charges handling fees for crypto/metal transactions (0.08%), stablecoins (0.01%), VLP minting (0.3%) and forex (0.015%) transactions. The treasury receives 25% of the transaction collected fees. The remaining 75% is distributed to stakers (25%) and the VLP pool (50%). Furthermore, to ensure stability in the VELA token supply, up to 20% of the fees generated are occasionally used to buy back VELA on the open market.
If users stake VELA and esVELA, besides earning USDC in staking rewards, they’ll be able to earn fee discounts of up to 50%, depending upon the amount staked.
Vela has a maximum token supply of 50 million, with a total supply of 11.83 million and a circulating supply exceeding 11 million as of Jul 3, 2023. The token allocation is diverse, with 30% for community incentives and 19% for the growth fund. In addition, 18% is reserved for DXP bridging, and the core team receives 16%. Investors and partners have a 10% allocation. Marketing is allocated 5%, with the remaining 2% for advisors.
Vela Exchange recently completed a two-month beta launch and has officially launched on Arbitrum. During the beta period, the trading volume hit $5.5 billion, with over 60 million VLP minted. This trading volume activity is based on more than 50,000 unique wallets. The beta launch spurred improvements for its official launch, such as One Click Trading, advanced analytics, on-chart trading, flexible charting tools and enhanced price feeds ideal for volatile markets, such as crypto.
Vela Exchange supports next-generation perpetual trading with many trading pairs. It’s a robust platform, having gained a large following during the beta phase. With notable improvements planned for the platform in the near future, its popularity and usage may continue to grow. Note, however, that our opinion should not be deemed financial advice. Always do your own research (DYOR) when investing in altcoins, which tend to be volatile in nature.
VELA tokens are necessary in order to access many of the features on VELA Exchange. While you can earn VELA through staking, you can also buy VELA on Bybit. To make your purchase, you’ll need to create a new Bybit account if you don’t already have one. After signing up with Bybit and depositing USDT, you can quickly complete a trade for the VELA/USDT Spot pair.
Currently, Bybit is offering two special events that give users a chance to share in a prize pool of 18,000 VELA. These events run from Jun 27 through Jul 12, 2023. The first one, crafted for newcomers, allows participants to win a share of a 12,000 VELA prize pool. Simply register for your new Bybit account, verify your identity and deposit a cumulative amount of at least 35 VELA. Doing so will earn you 35 VELA out of a prize pool of 12,000 tokens.
The second event is for current Bybit users. As an existing user, you can deposit a minimum of 35 VELA to earn a reward from a prize pool of 6,000 VELA tokens. The larger the deposit you make, the larger your reward will be.
By leveraging the advantages of both DEXs and CEXs. Vela Exchange provides a seamless and user-friendly trading experience, akin to CEXs, while ensuring decentralized asset trading with speed and security. With unique features including a One Click Trading (1CT) wallet, on-chart trading and advanced risk management tools, Vela Exchange aims to bridge the gap between decentralized finance (DeFi) and centralized finance (CeFi). Supported by the VELA token and its robust tokenomics, Vela Exchange has gained traction during its beta phase, showcasing potential for growth and continued improvements in the future.
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