Decentralized perpetual exchanges are getting ready to take the reins in the crypto trading niche especially with the distrust and uncertainty surrounding most centralized exchanges now.
And with the likes of GMX & dYdX in the forefront, another yet incredible decentralized perpetual exchange is about to join in (and may well be on its way to take the lead).
You’ll soon find out as we delve into what this DEX (Vela Exchange) is all about…
But first, what’s Vela Exchange?
Vela Exchange is a permissionless, self-custody driven perpetual and spot exchange combining the functionalities of both CEXs and DEXs providing the best of both worlds.
Vela initially existed as DexPools – a secure, scalable swapping platform built to facilitate token and NFT trades across multiple chains. It is currently launched on these networks – Optimism, Ethereum, Avalanche, Binance Smart Chain, Metis. The native token of Dexpools is $DXP which accrues multiple forms of utility for users starting with a unique rewards structure. The rebrand to Vela is as a result of the team’s intention to further expand their roadmap and further explore other trading tools and ideas (perpetual and spot trading for a start) to offer traders a secure, fast and seamless trading experience.
Here are some of the unique features offered by Vela Exchange :
- Perpetual and spot trading with up to 30x leverage.
- OTC P2P Application.
- 100% self custody.
- Fast and secure trading experience.
- Supports trading of major synthetic and novel assets.
- Combined functionalities of CEXs and DEXs providing traders with the best of both worlds.
$VELA is the native token for the Vela Exchange ecosystem. It can be obtained by:
- providing liquidity on supported DEXs.
- through obtaining and vesting eVELA.
- by purchasing via supported exchanges,
- or through specific platform rewards.
Owners of $VELA can stake the token to get rewards from platform fees. About 75% of the platform fees will be distributed to stakers of $VELA and $VLP ( a token that represents your position when you stake either $USDT, $USDC or $DAI on the Vela Exchange perpetual platform). It can still be redeemed for the actual stablecoin you staked on the platform.
Also, holders of Dexpools’ token ($DXP) will be able to swap their tokens 1:1 to the new $VELA tokens.
$eVELA (escrowed VELA) can be staked just like $VELA tokens and earn rewards from platform fees similar to $VELA’s reward structure. $eVELA is neither tradable nor transferable.
Pretty nuts, right?
Quite a ton of insane utilities accrued to the $VELA token. Totally worth keeping your eyes on but remember, this is not financial advice of any sort.
The team at Vela has announced their Public Beta testing to take place on January 18th, 2023, and they may reward participants so you might have to turn on your notifications and keep your eyes glued on their twitter page.
Judging by their tokenomics model, you can tell that 35% of the $VELA tokens will be used to incentivize the community. So, you might want to have yourself positioned for it.
It is pretty glaring that Vela Exchange will lead the new era of decentralized perpetual trading. And with their upcoming launch in the Arbitrum ecosystem, this only helps to put the Arbitrum ecosystem on the map as one of the leading DeFi networks. Vela Exchange intends to offer a self-custody driven perpetual and spot trading experience to traders combining both the functionalities of CEXs and DEXs. Plus all of this comes with an amazing reward structure to reward users. This is unlike what most centralized exchanges offer. This helps onboard a ton of traders and DeFi enthusiasts in the Arbitrum ecosystem and furthermore helps them gain exposure to other incredible DeFi protocols in the ecosystem.
However, Vela Exchange could bootstrap liquidity and create massive demand for their products by participating in the 3xcalibur’s Great Migration programme.
This program is designed to incentivize the migration of liquidity from other decentralized exchanges (DEXs) to 3xcalibur.
By having their liquidity pooled on 3xcalibur, VELA may receive $XCAL (native token of the 3xcalibur protocol) grants and continual support from the team. Airdrops in the form of $veXCAL NFTS will be given to migrators which will enable VELA to vote on gauges and direct emissions. Plus, VELA will also accrue 90% of the trading fees generated from the favorite pools they vote for which they can distribute back to the users of VELA Exchange/stakers of $VELA tokens.
And that’s barely scratching the surface because there are bribes waiting to be claimed from LPs who may want to vote for their pools.
But there’s a catch…
The airdrop will be distributed on December 31st and so migrators/intending projects willing to participate are required to have their LPs ready on 3xcalibur until December 31st.
More information regarding this program can be deduced by visiting this page…
If you’d like to learn more about VELA Exchange, here are your go-to places…
Discord server – http://discord.gg/vela
Telegram page – https://t.me/vela_exchange
Twitter page – https://twitter.com/vela_exchange
Whitepaper – https://www.vela.exchange/whitepaper.pdf
Ultimately, you can visit their website https://www.vela.exchange/ and sign up for the coming beta testing and weekly email updates.
Written by : Paschal Lawrence.