All users can take advantage of Vertex’s integrated money market, borrow and lend BTC and ETH on a spot margin, enabling efficient capital deployment in cross-margined accounts.
The Vertex Protocol (Vertex), a decentralized exchange for spot and derivatives trading of digital assets, announced today that it has gone public, allowing 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. Combining a high-performance off-chain order book overlaid with an on-chain automated market maker (AMM) on a self-custodial, decentralized exchange offers the benefits of a centralized exchange (CEX) without the drawbacks.
“When we set out to build Vertex, we brought together a team of merchants and other financial industry veterans to create a robust, best-in-class venue.” said Vertex Protocol co-founder Darius Tabatabai.
He added that “Vertex is the completion of over a year 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 Market
Said launch comes as CEXs face increasing scrutiny from users wary of centralized custody, and not long after research found 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 decentralized finance (DeFi) protocols are increasingly used by users, a market is 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 expects to play an increasingly important role in the financial system of the future.
“Individuals and businesses increasingly view DeFi as an alternative to the flawed centralized exchange model.” Tabatabai added. “We believe that Vertex offers a viable alternative with similar liquidity and velocity, along with better capital efficiencies than existing 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 reached 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 to Arbitrum allows Vertex access to our world-class technology and will hopefully see the scale exchange in size very quickly. We are 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 10,000-15,000 transactions per second with an order-matching latency of 10-30 milliseconds, a speed that rivals major centralized locations and beats any DEX currently available.
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 poised to quickly become a leader in the DeFi category for the rest of this year and beyond.
Today at Vertex Protocol 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.
By Audy Castaneda
