crypto-economy.com
Table of Contents
Vertex, a decentralized cryptocurrency exchange (DEX), went live on the Arbitrum (ARB) blockchain enabling market participants to trade seamlessly on the platform. The brand new exchange aims to offer high-speed spot and derivatives trading.
Following the spectacular collapse of FTX, decentralized exchanges have experienced a particular surge. Uniswap, PancakeSwap, dYdX and GMX among others have garnered massive traction over the recent few months. The meteoric growth can be attributed to a number of factors including security, transparency and lower fees, among others.
The skyrocketing popularity is also due to their ability to offer users a high degree of control over their assets, unlike centralized exchanges (CeFi). DEXs are transforming the landscape of cryptocurrency trading with improved liquidity, interoperability between chains and advanced tools to ensure compliance with increasing regulations without sacrificing decentralization.
New DEX Offers High Speed Trading
On April 26, Vertex took to Twitter to announce the launch of the DEX that uses a hybrid approach, by using on-chain automated market maker (AMM) with an off-chain orderbook. Initially, the exchange will offer trading only for Bitcoin (BTC) and Ethereum (ETH) but plans to expand to perpetuals, a type of derivatives futures contract, within the next three to six months. Vertex’s primary goal is to build a multi-currency trading platform with an efficient market trading structure.
1/ Vertex is now live on the @arbitrum mainnet 🚀
Start trading with lightning-fast speed & universal cross-margin across spot, perps & money markets!
Trade like a CEX, self-custody like a DEX.
Welcome to Vertex 🏔️https://t.co/vKQ9CGsEFJ pic.twitter.com/G5uQ7LEzBX
— Vertex 🏔 (@vertex_protocol) April 26, 2023
Furthermore, the exchange aims to bridge the liquidity gap that CEXs offer through a number of innovative solutions, such as cross-margining, near-instant order executions, no MEV, and vertically integrated products. It facilitates Application Programming Interface (API) to plug Vertex’s protocol into external exchanges to execute trades, in addition to checking asset prices, placing orders, and checking account balances.
With a self-custodial wallet access and underlying decentralized layers — Arbitrum and Ethereum — Vertex ensures the ownership of assets. Vertex Protocol cofounder Darius Tabatabai explained users can deposit whatever tokens they have that Vertex accepts as collateral, and then they can trade them, as well as use them for collateral to trade perpetual, enabling them to speculate on future price movements of tokens.
4/🏔️Lightning-Fast Performance
Trade with low-latency matching speeds via Vertex’s unique sequencer & hybrid orderbook-AMM design 🚄
🔹https://t.co/0jZMozcc2R
Check out the recent 🧵https://t.co/9rfoHJTP5A
— Vertex 🏔 (@vertex_protocol) April 26, 2023
DEXs Witness Enormous Traction
As the crypto landscape continues to evolve, it is becoming crucial to prioritize decentralization and the security of users’ assets. Decentralized finance (DeFi) platforms have the potential to offer a viable alternative to centralized exchanges providing users with greater control and security over their assets.
As per a recent report, decentralized exchanges have witnessed a 27.6% increase in average monthly volumes in the first quarter of this year, compared to 2022. By the end of March, monthly volumes for DEXs reached an average of $97.0 billion, a substantial increase from the $76.1 billion observed in Q4 2022 average.