Vertex Is Now Live On Layer 2 Arbitrum Mainnet

Key Points:

• Vertex, a decentralized exchange for trading digital assets in spot and derivatives, has launched on Arbitrum.
• On a decentralized, self-custodial exchange, the DEX combines an off-chain order book layered on top of an on-chain automated market maker.

Vertex Protocol, a DEX built on Ethereum layer 2 Arbitrum, will launch on Wednesday to offer high-speed spot and derivatives trading.

Vertex is a decentralized, self-custodial exchange that combines an off-chain order book layered on top of an on-chain automated market maker. While the exchange will cater to both retail and institutional traders, Vertex is backed by a number of well-known market-making and proprietary trading firms, including Jane Street, Dexterity Capital, Hudson River Trading, and GSR.

Vertex employs a hybrid of an off-chain orderbook and an on-chain automated market maker, allowing it to combine the best features of both decentralized and centralized exchanges with trading speeds that outperform both decentralized and centralized platforms.

Last year’s collapse of FTX and other centralized trading platforms fueled a shift toward decentralized exchanges and self-custody. Arbitrum, an Ethereum layer 2 system, is now the fastest-growing blockchain in terms of total value locked and has surpassed Ethereum in terms of daily transaction volume.

The prevalence of retail traders embracing complex derivatives is a distinct feature of a cryptocurrency, and inexperienced users have been exposed to increased risks, particularly during the prolonged bear market. This creates specific dynamics that can drive exchanges like Vertex, which is attempting to achieve parity in the breakdown of retail and institutional traders.

Building Vertex on Arbitrum and using an off-chain sequencer for the order book has allowed the venue to process between 10,000 and 15,000 transactions per second, with the ability to match orders in 10 to 30 milliseconds, a speed that rivals and exceeds that of leading centralized venues. With the release of Vertex from private beta today, it will begin to offer users an incentive program in which they will receive a native token called VRTX for trading, which will be available in October.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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