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One of the biggest debates in the crypto world right now is decentralized exchanges (DEX) versus centralized ones (CEX). While a decentralized exchange theoretically offers more users' rights and individual flexibility, many customers prefer the security and convenience of a centralized exchange. An exciting new project called Vertex hopes to combine the two concepts and provide the best of both worlds. Can Vertex really create a secure, high-performance system that avoids centralization? Keep reading to find out.
Key Takeaways:
Vertex is a decentralized exchange that focuses on providing an efficient, high-quality user experience.
As a vertically integrated exchange, Vertex bundles together multiple crypto exchange services into one accessible front end.
Looking to trade Vertex tokens? Bybit now offers the VRTX/USDT Spot trading pair. To celebrate this listing, Bybit is holding three exclusive events for you to grab a share of the 745,000 VRTX prize pool.
Vertex is a decentralized exchange that focuses on providing an efficient, high-quality user experience. As a vertically integrated exchange, Vertex bundles together multiple crypto exchange services into one accessible front end.
Vertex is a Singapore-based company founded in 2021. The project was created byDarius Tabatabai and Alwin Peng. Before creating the company, Tabatabai was the head of trading at JST Capital. During his time in investment management, Tabatabai noticed there was a huge demand for a decentralized exchange that actually worked well.
The Vertex team was inspired by the success of both the Uniswap decentralized exchange and the Binance centralized exchange. After witnessing user responses to both of these projects, Tabatabai and Peng started thinking of a way to combine the best features of both projects.
Vertex hopes to simultaneously provide users with the convenience of a centralized exchange and the freedom of a decentralized one. In order to achieve this plan, Vertex decided to focus on a few specific goals:
Create a fair set of rules for all users and stick to it
Provide users with self-custody over all assets
Offer a broad range of product features
Improve trading speeds and prevent slippage
Boost liquidity to back all crypto trades
Design an easy UI
Vertex is a decentralized app (DApp) that’s currently built on Arbitrum, with plans to transition to the Ethereum virtual machine (EVM) in the near future. Its structure consists of multiple blockchain technology layers that are governed by a complex set of smart contracts. A smart contract layer, alsocalled Slo-Mo Mode, handles all the base protocols, such as processing liquidity and storing user accounts. An off-chain trading engine rapidly matches inbound and outbound orders, and then uses optimistic rollups to send batched transactions on-chain for verification.
In addition to enabling lightning-fast trading, Vertex also features vertical integration, a strategy that offers several related products through the same system. For example, users can both borrow money through the integrated money market and earn money with an automated market maker (AMM). All of these products work together in the Vertex system, which offers capital efficiency and an excellent trading experience. The vertical integration also helps to bundle gas fees, so people save money on transactions.
Vertex is all about providing capital efficiency and an unparalleled trading experience. Following are some of the many features it provides to users.
The site's main service is a DEX through which both institutional traders and retail users can buy and sell digital assets. Its trading engine supports basic cryptos and a variety of derivatives trading markets. An integrated AMM rapidly fulfills orders. Vertex's integrated money market also lets people borrow assets to make investments via the exchange.
Unlike many other DEXs, Vertex provides both AMMs and central-limit order books. The AMMs allow users to buy tokens from liquidity pools, while the central-limit order books let them trade directly with each other.
When working with the integrated money market, you can use your existing trading portfolio as collateral for your margin trading. Having one universal margin account makes it fast and easy to get the funds you need for creative trading plans. Your assets hedge risk, while still giving you the chance to earn money.
To avoid excessive financial losses from Vertex's integrated money market, the site automatically liquidates investors' one universal margin account if a trade becomes too risky. It also has an insurance fund to help hedge risk by paying off any major insolvencies.
One-click trading lets users enter a secure private key and finalize all trades with a single click. This makes trading fast and straightforward, especially when used with the integrated automated market maker. Institutional traders can handle everything from liquidity provision to derivatives trading without having to waste time signing each transaction.
Vertex's fee model charges gas fees for transactions, but it also provides valuable rewards. For example, each AMM receives compensation from the funds collected with Vertex's fee model. People also earn rewards for activities such as trading on Vertex, or referring others to the protocol. The Trading Rewards Program includes thousands of dollars worth of rewards.
In 2022, the Vertex road map focused on releasing the DApp's testnet. After successfully testing the system with a smaller set of users, Vertex then opened the mainnet in late 2023 and began to focus on long-term next steps.
Vertex’s recent prioritization is its token launch. The aim is to create a token and distribute it in a way that raises funds for the project and rewards early adopters. After solidifying its token, Vertex hopes to spend 2024 further expanding its system. As the network continues to attract users, it aspires to become a user-led community that can add new projects as people request them.
VRTX is an ERC-20 token that’s mainly used for growing the Vertex community. Users can stake the token to get rewards, increase token prices and help fund the system. It’s also a governance token that may eventually be used for voting on new system features.
VRTX has a total supply of 1 billion tokens that will slowly be distributed over the course of five years, to be allocated as follows:
Ongoing community incentives: 34%
Founding team rewards: 20%
Treasury: 11.7%
Ecosystem: 9%
Future contributors: 5%
Liquidity bootstrapping auction: 1%
Advisory: 0.5%
Early investor rewards: 8.8%
Initial token phase: 10%
VRTX is currently retailing for around $0.40. Since its release, the coin's price has climbed from around $0.23 to as high as $0.52. This rapid growth without any drastic dips in price suggests that VRTX’s price may continue to rise. CoinMarketCap reports a bullish outlook on VRTX, with the likelihood of more price increases in the future.
How high will VRTX go? CoinCodex's data analysis suggests that, if things go well, it may reach $0.59 in 2024 and possibly exceed $1 in value by 2025. However, there's also a slight possibility of a downturn in the future. If the coin performs poorly, it might struggle to surpass $0.90.
Looking to trade Vertex tokens? Get started by signing up for a Bybit account, funding it with cryptocurrency and navigating to the VRTX/USDT Spot trading page.
To celebrate this listing, Bybit is holding three exclusive events for you to grab a share of the 745,000 VRTX prize pool.
The first event, Deposit to Earn, runs from Nov 21, 2023, 10AM UTC through Dec 4, 2023, 11:59PM UTC. The first 3,000 new users who complete the following two steps during the event period will receive 100 VRTX each:
Sign up for a Bybit account and complete Identity Verification.
Accumulate a deposit volume of at least 250 VRTX, or deposit 100 USDT and use your Bybit account to purchase any amount of VRTX via your first trade.
If you’re already a Bybit user (prior to Nov 21, 2023, 10AM UTC), no worries — because you can still earn 50 VRTX! Simply accumulate a deposit volume of at least 250 VRTX, or deposit 100 USDT and buy 100 USDT worth of VRTX using your Bybit account. Please note that rewards will be distributed on a first come, first served basis to the first 1,000 users.
The second event, Stake to Earn, is being held from Nov 21, 2023, 10AM UTC through Dec 12, 2023, 11:59PM UTC. Simply stake VRTX and earn up to 99% APY.
Please note that only users who sign up for a Bybit account after this event starts are eligible.
The third event, Trade to Earn, will be held from Nov 21, 2023, 10AM UTC through Dec 12, 2023, 11:59PM UTC. Simply trade the VRTX/USDT Spot trading pair and accumulate a Spot trading volume worth at least 200 USDT during the event period to earn a share of the prize pool.
Please note that your ranking will be determined by your trading volume. If you rank higher, you’ll receive more rewards in return.
VRTX has experienced robust growth in the past few weeks, so it's a great choice for investors who want a short-term investment and are comfortable with higher-risk cryptos. Its promise of enabling lightning-fast trading could potentially attract a lot of users. If this occurs, VRTX prices are likely to keep rising in the future.
However, keep in mind that some crypto experts have a more cautious outlook. Vertex sounds exciting in theory, but it hasn't actually released many products yet that differentiate it from its competitors. The Twitter/X community has users spreading rumors that VRTX may be a rug pull. Modern crypto investors are becoming increasingly cautious about startups, so if Vertex fails to deliver on its promises in the next year, prices may eventually begin to drop.
Vertex’a DEX offers users many exciting features and helpful services. They're still rolling out their mainnet and releasing all of their new products, so it might take some time for this DApp to find success. However, even though it’s still in its early stages, the VRTX crypto is already picking up steam. Investors who like up-and-coming projects should definitely check out Vertex's system.
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