Nov 2, 2022
VEGAPROTOCOL
Vega is a protocol for the decentralised trading and execution of financial products. It is designed for fully automated, end-to-end margin trading on open public networks, secured with proof of stake and built on tendermint.
Products on a Vega network can reference practically any underlying price or other data feed, allowing participants to define and trade a wide range of instruments across the full spectrum of global markets. Cross-chain settlement means that the protocol is blockchain agnostic and allows trades to settle in any crypto asset residing on a supported chain.
Background & Motivation
Traditionally, financial products are created and traded in markets consisting of various organisations and sometimes individuals connected by technology systems and contractual obligations that simultaneously facilitate trading and create barriers to entry. These vary in complexity, cost, and sophistication from extremely slow, manual, and error-prone paper-based operations to high-speed, high-liquidity electronic markets.
Regardless of the precise methods and systems in use, there are still certain problems here.
Traditional financial market key problems:
- The need to trust third parties.
- Rent-seeking intermediaries that drive up costs.
- The presence of organisations and structures that act as gatekeepers and censors for access to existing markets, and equally importantly, controlling the availability of products and creation of markets themselves.
A decentralised platform for financial products — in which no individual node or party being compromised would pose a risk to the ongoing operation of the network or availability of markets — could provide a genuine alternative, allowing everyone to trade on a more equal basis. Access would be available to all, and the creation of markets would no longer be dependent on central parties or organisations.
…The solution Vega is offering.
Real-world uses and adoption Of Vega
By definition, a permissionless platform places the development of new products and the launching of markets in the hands of participants, so it is not possible to predict which instruments would be made available or when, however, we have identified below a small subset of use cases with clear potential benefits to give an idea of the potential of this technology. Traders in the blockchain and cryptocurrency sector form an obvious starting point, given their technical familiarity with the concepts underpinning Vega. The existence of an active and informed trading community with significant (and growing) trade volume, and the increasing sophistication and institutional interest means there is already demonstrable demand for a decentralised platform for trading in various crypto-asset derivatives. Where the cost of creating products and operating markets has previously been prohibitive, and in situations where barriers to access exist, there is a clear demand for innovation that is not met by the current system.
Key Features Of Vegaprotocol
- Permissionless market creation: Propose a market on any underlying.
- Anti-front running: Fair access to the order book, preventing miner extractable value (MEV).
- Purpose-built blockchain: High-performing smart contracts for sophisticated trading.
- Pseudonymous trading: Keep control of your data, and protect your privacy.
- High capital efficiency: Lower capital costs and evaluate risk live with cross-margining.
- No gas fees on trading: Fees only on trades on a market in continuous trading.
- Native liquidity provision: Built-in liquidity incentives for bustling markets.
- Cross-chain support: Choose the digital asset for collateral or settlements.
Vegaprotocol Roadmap
Vega protocol is currently at the restricted Mainnet phase, while the Alpha Mainnet is expected to launch later this year.
Vega Ambassador Program
Vega first launched their ambassador program in February 2022. Currently, the application for ambassadors is now open and you are encouraged to apply to join the Content collective team(non-technical team), the Builders club(technical team) or the Multilingual league.
Vega Fairground
Fairground is the official testnet of Vega. Free from the risks of real trading, Fairground is a safe and fun place to try out Vega yourself. Use the powerful Vega Console app, or build on the protocol’s rich decentralised APIs. Try order book liquidity mining and permissionless market creation. Experience the speed and efficiency of Vega’s blockchain.
Participate in the incentives programme to earn rewards for helping to find bugs and battle harden Vega.
Click here to check out Vega fairground and join the testnet.
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Thanks for reading.
