Blockchain News

Vertex Integrates with Arbitrum to Offer More Scalable Trading for Institutional Investors

Vertex beta testing began on March 8, with a select group of clients testing the order book and other components of the DEX. 

Crypto trading protocol Vertex announced deploying contracts on Arbitrum mainnet with a target to attract institutional traders. The protocol on March 8 began beta testing with a select group of institutional traders for spot and derivatives trading.

Participants can test the order book and other components of the DEX before the release of a front-end dApp later this year. 

Vertex is the latest player in Arbitrum's decentralized finance ecosystem (DeFi). Arbitrum has a Total Value Locked (TVL) of $3.2 billion, placing it in the fourth spot among other chains. Since the beginning of 2023, TVL in DeFi applications on Arbitrum has doubled.

As the largest DApp on Aribitrum, GMX represents 32.04% of the network's total TVL. Here traders and liquidity providers compete against each other on the perpetual swap trading platform. Further, the GMX platform offers yields to token holders without diluting the token supply, with stakers earning 30% of the protocol's fees.

Vertex aims to compete with GMX, which relies on user-supplied liquidity via automated market makers (AMMs) to facilitate trades. On the other hand, Vertex utilizes an order book, a traditional setup found on centralized exchanges.

According to the protocol, Vertex provides users with optimal price matching, trade execution, and access to opportunities.

“GMX may struggle to keep pace with future growth due to its reliance on a liquidity pool, which may not be scalable,” said Darius Tabatabai, co-founder of Vertex.

The second phase of Vertex's private beta will begin in a few weeks. The public launch will begin in phase three after the API-only and private beta testing phases.

Arbitrum's Growth Over the Last Few Months

Arbitrum is challenging other blockchain networks for market share. In addition to growth in TVL, the Layer 2 blockchain surpassed Ethereum in daily transactions for the first time on February 21.

Additionally, Arbitrum has seen a significant increase in stablecoin inflows in recent days, with the highest inflow across all blockchains. The influx of stablecoins indicates growing confidence in the Arbitrum ecosystem.

What is Vertex:

Vertex Protocol is an Arbitrum-based decentralised exchange that is developing a Vertically Integrated Exchange (VERT-EX) with an order book and advanced risk engine to facilitate cross-margined trading of spot and derivatives, as well as a money market to facilitate leverage and yield products. The team aims to improve the user experience by providing integrated solutions such as on and off-ramps, efficient bridging, Web2-style sign-up integrations with self-custody, and multiple user interfaces to accommodate different traders with varying needs.

Learn more about Vertex:

Website | Twitter | Discord | Telegram 

What is Arbitrum:

Arbitrum is an Ethereum layer-2 network that enables developers to build and deploy highly scalable smart contracts at low cost. You can use Arbitrum chains to do all the things you do on Ethereum — use Web3 apps, deploy smart contracts, etc., but your transactions will be cheaper and faster. The flagship product for the team, Arbitrum Rollup, is an Optimistic roll-up protocol that inherits Ethereum-level security.

Learn more about Arbitrum:

Website | Docs | Twitter | Blog |

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