Thread by @RiddlerDeFi

1/

Despite the events of 2022, #CEX still have the upper hand on #DEX

They still lead the market thanks to a more intuitive UI/UX and a wider range of products

There's a protocol on @arbitrum ready to fix this problem

A deep dive on @vertex_protocol 🔎

👇🧵

@arbitrum @vertex_protocol 2/

TL;DR 🎙️

@vertex_protocol is a VERTically organized decentralized EXchange

It has a unique AMM-Orderbook mix, great UI/UX, long-term sustainable tokenomics and is good for different kinds of traders

@arbitrum @vertex_protocol 3/

What I'll cover in this thread:

▶️ The problem of CEX vs DEX
▶️ The solution of Vertex Protocol
▶️ AMM and Orderbook
▶️ Tokenomics

@arbitrum @vertex_protocol 4/

▶️ The problem of #CEX vs #DEX

2022 made the cracks in centralized system obvious once more

Crypto should bring the solution to this, not perpetuate it

But DEXs have a hard time stealing centralized exchanges' volumes

Why is it so? 👇

@arbitrum @vertex_protocol 5/

The main reasons CEX still reign in this market are:

👑 A wide range of utility and products
👑 On-chain has limitations (like the Trilemma) leading to suboptimal solutions and fragmented liquidity
👑 Beginners to #DeFi prefer higher quality easier UX and UI from CEXs

@arbitrum @vertex_protocol 6/

Not everybody's here for the tech, and that's why many choose for less safe, but easier to use options ☺️

@vertex_protocol wants to build aall-in-one DEX to solve this problem

A great DEX can give the same goods of CEXs with self-custody as a plus 🔐

@arbitrum @vertex_protocol 7/

▶️ The solution of @vertex_protocol

Vertex is creating a full-ecosystem of products within their @arbitrum DEX that can challenge a CEX

✅ Permissionless
​✅ Transparent
✅ Self-custodied and trustless
✅ Tamper-proof and immutable
✅ Decentralized

@arbitrum @vertex_protocol 8/

First, there's a wide range of products:

▪️ Cross-margin spot and perps
▪️ Lending and Borrowing with integrated Money Market
▪️ Robust Risk Engine for risk management
▪️ Lite/Pro UI/UX for different levels of experience
▪️ On/Off FIAT ramps

@arbitrum @vertex_protocol 9/

On top of all of this Vertex developed their own SDK to push for integrations by other developer 🤝

Thanks to it, Vertex can reach a higher level of composability and it can be integrated with other #dApps easily

There's also an integrated bridge 🌐

@arbitrum @vertex_protocol 10/

To make all of this possible, Vertex chose @arbitrum's chain ⛓️

Arbitrum gets the best of $ETH liquidity while maintaining low fees and faster txs

Arbitrum also seems like the booming DEX market at the moment 🚀

@arbitrum @vertex_protocol 11/

The DEX also uses a unique order book and AMM hybrid that gives the exchange a better tech 💻

One of the best feature of it is being able to use the off-chain for faster txs, but more on that later ⛓️

@arbitrum @vertex_protocol 12/

There are 3 main types of users exchanges cater to:

Retail users, Automated traders, and the 'degens' in between 🃏

Retail needs a easier and comforting UI/UX and simplification with #DeFi

Vertex can conquer them with the on/off ramps and Vertex Lite ☺️

@arbitrum @vertex_protocol 13/

Automated traders like market makers and institutional need deep-liquidity and protection from front-running 🛡️

Good SDK for ease of connection is also fundamental 🧰

This #DEX has the tech necessary to achieve both

Degens will follow through

@arbitrum @vertex_protocol 14/

▶️ AMM and Orderbook

Vertex combines these two exchanges model to get the best of both 🤝

AMM is pretty much they key stone of DEXs while orderbook is the most common for CEXs

What are the practical advantages of this model?

@arbitrum @vertex_protocol 15/

This AMM-Orderbook hybrid is

🎯Open to everyone
🎯Fully on-chain
🎯Has a better market maker execution
🎯Safer thanks to a better Risk Engine

Thanks to off-chain servers aiding the whole system, the process gets even faster than just @arbitrum

@arbitrum @vertex_protocol 16/

▶️ Tokenomics

@vertex_protocol's main token is $VRTX, but it declines in 3 different versions:

$VRTX, xVRTX, and voVRTX

Let's see the differences

@arbitrum @vertex_protocol 17/

$VRTX is the base token

After buying it, you can participate with it in crypto basket auctions and get discounts on fees

Spent $VRTX gets converted into voVRTX 💱

If you want to take part in Vertex Ecostystem you can stake it to get xVRTX 🔒

@arbitrum @vertex_protocol 18/

xVRTX has a 2-weeks minimum unlock

It gives access to voting and Vertex's fees sharing 🌽

voVRTX on the other hand is untradable and can be seen as some type of user score

voVRTX is only obtainable by being active within Vertex Ecosystem and has boosting perks 🚀

@arbitrum @vertex_protocol 19/

Before closing the thread, remember that the public testnet is live on @arbitrum 🛰️

if you want to get a feel yourself of how @vertex_protocol works, you can find everything here 👇

https://twitter.com/vertex_protocol/status/1594837186335088642

@arbitrum @vertex_protocol 20/

Links for DYOR 🌐

Twitter: @vertex_protocol
Linktree: linktr.ee/vertex_protocol
Site: vertexprotocol.io

@arbitrum @vertex_protocol That was it for this thread 🧵

You know the drill 🫡

Follow me @RiddlerDeFi for more alpha 🧠 

Best way to support is to simply drop a RT + LIKE on the #1 tweet of this thread 🖤

https://twitter.com/RiddlerDeFi/status/1617922190615220225