Since the Arbitrum airdrop, its ecosystem projects have attracted significant market attention. Among them, Vela Exchange, an emerging decentralized perpetual trading platform on the Arbitrum chain, has delivered exceptionally impressive results during its two-month public beta. Therefore, this article will share what makes this platform, officially launching on June 26, particularly special.
What is Vela Exchange? Vela Exchange is a decentralized exchange (DEX) on the Arbitrum chain, designed to provide traders with an experience comparable to centralized exchanges (CEX) while addressing common DEX trading issues such as front-running, slippage, asset restrictions, and a lack of risk management features. Currently, Vela Exchange focuses on perpetual contract trading as its core product, with plans to gradually support spot and OTC markets in the future. The OTC market is about to open. Why do decentralized derivative products deserve attention? In the cryptocurrency market, derivative trading is one of the preferred choices for investors. In this regard, most users primarily rely on centralized exchanges (CEX). However, since the FTX collapse last year, users have gradually shifted toward DEXs — decentralized exchanges — for trading, with decentralized perpetual contracts playing a key role in this transition. What are the features of Vela Exchange? Although Vela Exchange and GMX are both decentralized derivative exchanges on Arbitrum, Vela has drawn inspiration from GMX’s model, where depositors supply funds to generate VLP. VLP is a liquidity pool (denominated in USDC) provided by general investors. Traders can use VLP for leveraged trading, while general investors receive a share of platform revenue and profit from traders’ losses. Additionally, unlike GMX, Vela’s asset pricing mechanism is more decentralized, as only certain contract addresses hold admin privileges, relatively reducing the risk of malicious manipulation. Vela Exchange’s public beta achieves notable results During Vela Exchange’s public beta phase of over two months, it demonstrated the strength of its community and trading platform, attracting traders and investors from around the world and achieving the following impressive milestones:A Massive Trading Volume of $5.5 Billion
Source: @purif Vela Exchange launched its Beta in February this year. Surprisingly, during the Beta testing period, Vela’s daily trading volume once reached as high as $300 million! In total, it accumulated $5.5 billion in overall trading volume. This is an exceptionally remarkable figure, especially considering that this was only a Beta version. It demonstrates the success of Vela Exchange during its public testing phase and lays a solid foundation for its official launch. The Highest Daily Trading Volume Far Exceeding Other Perpetual Decentralized Exchanges Leveraging the advantages of the Arbitrum chain, Vela Exchange provides users with the benefits of high efficiency and low transaction fees, while ensuring transaction speed and security. As a result, during the Beta testing phase, Vela Exchange attracted numerous traders. Its peak daily trading volume far surpassed that of other perpetual decentralized exchanges, greatly satisfying the needs of traders. Over 50,000 Actively Used Wallets Source: @purif As mentioned earlier, Vela Exchange achieved remarkable trading volume during its Beta testing phase and attracted more than 50,000 active wallets (users). This data reflects the popularity of Vela Exchange in perpetual contract trading, as well as its continuous community expansion and the development of a more prosperous trading ecosystem. VLP Locked Value Exceeding $50 Million in USDC Source: @purif VLP, the primary liquidity provider of Vela Exchange, saw its locked value exceed $50 million in USDC within just two months. As the VLP locked value increased, the liquidity of Vela Exchange was effectively enhanced. This helps ensure trading depth and smoothness on the platform, breaking the previous inefficiency issues of DEXs and providing users with a better trading experience. In summary, considering the limitations faced during the Beta testing phase, including low open interest limits, increased fees, prevention of front-running, and reduced leverage to 20x, these achievements are truly beyond imagination. (Note: The primary purpose of VLP is to provide liquidity for Vela Exchange.)Anyone can stake USDC to mint VLP and earn fees based on the trading volume generated on the platform. Meanwhile, users can redeem VLP back to USDC at any time. Enhancing the User Experience: Optimizations and Adjustments to the Platform With the conclusion of the Beta public test, Vela Exchange collected data and user feedback during this period, leading to significant platform improvements, including: – Updated smart contracts to ensure accurate price display – Increased decentralization, reducing the possibility of front-running – Improved fee structure and adjusted $VLP calculations – Industry-leading features: one-click trading, flexible charting tools, social trading, and advanced analytics – Multi-language support From these newly added or modified features, it is evident that the project team has been continuously paying attention to the community and traders’ experience and feedback, aiming to build a more refined and user-friendly DEX before the official release. These features will be rolled out during the early access period. Those who participate may even have the opportunity to receive potential airdrop rewards in the future. One-Click Trading Flexible Charting Tools The Next Phase of Vela Exchange: Reward Mechanisms and Partner Support In addition to the features already added and adjusted during the early access period, Vela Exchange will introduce the following rewards after its official launch on 6/26, including the airdrop information that users have been most anticipating: – Red Pill/Blue Pill mechanism for Beta test users (immediate/delayed rewards) – Additional rewards for VLP minters – Hyper VLP 2.0 – Official airdrop announcement To date, Vela Exchange has established partnerships with many partners to promote the development of the entire project ecosystem, including cross-chain bridges, oracle price feeds, VLP lending and staking functions, building a more comprehensive service system. The current ecosystem partners are listed below: – Axelar: Provides multi-chain bridging for direct access to the Vela ecosystem – Squid: Provides multi-chain routing (built on Axelar) – Pyth: Provides real-time price oracle – Graph Protocol: Used for indexing and querying blockchain data – GND: Provides Uniswap liquidity rewards – Ramses: Provides an additional source of liquidity and rewards
Camelot: Providing concentrated liquidity → VELA/ETH pool
Bitkeep: Providing alternative wallet support FactorDAO: Building multi-strategy insurance vaults, including VELA and VLP. Silo Finance: Providing a VELA lending market Twister Finance: Providing a VLP lending market Dolomite: Providing a VLP lending market OpenOcean: Providing trading functionality for Vela ecosystem tokens Vaultka: Providing leveraged VLP minting Seashell: Providing leveraged VLP minting Pendle: Allowing VLP to be minted at a discount Rodeo: Providing VLP yield farming Grenade Early Access Program is now live! Vela Exchange has officially announced that it will launch on June 26. Prior to that, the platform will offer an early access program for users to participate. The general user application period for the early access program has ended, but Grenade has specially secured a partnership with the Vela team to exclusively extend the application deadline for community users until June 21. Simply click the button below to get the final exclusive testing opportunity! (Experience Now) Conclusion Since the emergence of the decentralized perpetual contract platform dYdX, perpetual contract trading in the cryptocurrency market has been evolving toward greater sophistication. Subsequent platforms such as Perpetual Protocol and GMX have shown that more competition leads to better products. Although Vela Exchange shares some similarities with GMX in terms of features during its public testing phase, its impressive trading and user performance during the beta period suggests that once more features are introduced in the official version, it holds significant potential to attract market attention. Disclaimer: This article is intended solely to provide market information. All content and viewpoints are for reference only and do not constitute investment advice. They do not represent the views or positions of this platform. Investors should make their own decisions and trades. The author and this platform shall not bear any liability for direct or indirect losses arising from investors’ trading activities. Disclaimer: This article is intended solely to provide market information. All content and viewpoints are for reference only and do not constitute investment advice, and do not represent the views or positions of this platform.Investors should make their own decisions and execute transactions at their own discretion. The author and this website shall not be held liable for any direct or indirect losses arising from investors’ trading activities.
