Vega Protocol, a trading-focused blockchain platform, has unveiled decentralized perpetuals markets, a form of futures product without expiration dates. This addition supplements the existing offerings available since the mainnet launch in March 2023, including cash-settled futures markets.
In a departure from conventional practices, Vega introduces a unique approach to perpetuals. These perpetuals on Vega will be permissionless, allowing community members to actively propose and vote on specific assets.
This process determines which assets will serve as the basis for the establishment of perpetual futures. This move places Vega in a competitive landscape alongside platforms such as dYdX, GMX, Gains, Synthetix, and Perpetual Protocol.
Vega Protocol: Decentralized Perpetuals Empowering the Community in DeFi Evolution
Vega aims to distinguish its perpetual offering by empowering the community through on-chain governance to introduce permissionless markets. The governance mechanism will enable the approval of any ERC-20 token for settlements, deviating from the prevailing norm of limiting settlements to stablecoins like USDC.
Barney Mannerings, co-founder of Vega Protocol, expressed the significance of this release, stating,
“This is a substantial stride for Vega and the next era of DeFi. It introduces perpetual futures, the crypto-settled derivatives product most in demand within the community, to Vega’s open and permissionless network.”
Since the alpha mainnet launch in March, Vega has witnessed substantial trading activity. The platform has amassed over $850 million in trading volume. This figure is derived solely from its futures markets, as indicated by data provided by the team.
Vega Protocol Innovations, Funding Success, and Security Measures
The project’s whitepaper, revealed in 2018, delineates a performance-optimized blockchain with a Tendermint proof-of-stake consensus mechanism.
Specifically crafted to address the exacting demands of crypto derivatives trading, it provides attributes such as low latency and high scalability. Additionally, it incorporates a decentralized limit order book (dCLOB) as a fundamental component of its blockchain infrastructure.
In terms of funding, Vega secured a $5 million seed funding round in 2019, with Pantera Capital taking the lead. Subsequently, the project raised an additional $43 million through a community token sale on CoinList in 2021.
The security of Vega Protocol relies on validators participating in staking the Vega token. Presently, the token is trading at $1.2, and its market capitalization stands at $70 million, according to The Block’s price data.