Vega Protocol Launches Perpetual Futures Markets on its Trading-Focused Blockchain
Vega Protocol introduces perpetual futures markets, a permissionless offering on its blockchain network, allowing community members to propose and vote on specific assets for trading.
Vega Protocol, a blockchain platform focused on trading, has unveiled perpetual futures markets on its network. These perpetuals, which do not have expiration dates, are an addition to Vega’s existing cash-settled futures markets since its mainnet release in March 2023. By introducing perpetual futures, Vega aims to differentiate itself by empowering its community through on-chain governance and expanding settlement options beyond stablecoins.
Perpetual Futures on Vega:
Vega Protocol’s perpetual futures markets will be permissionless, enabling community members to propose and vote on the assets for which perpetual futures will be created. This move places Vega in a competitive landscape that includes platforms like dYdX, GMX, Gains, Synthetix, and Perpetual Protocol. However, Vega’s unique approach of leveraging community-led governance for permissionless markets sets it apart from its counterparts.
Community-led Governance and Settlement Options:
Vega’s community-led governance will have the authority to approve any ERC-20 token for settlements, deviating from the industry norm of limiting settlements to stablecoins like USDC or equivalent. This flexibility allows for a broader range of assets to be used in trading, providing more options and opportunities for traders on the Vega network.
Barney Mannerings, co-founder of Vega Protocol, expressed excitement about the release, stating that it marks a significant step forward for Vega and next-generation decentralized finance (DeFi). He emphasized that bringing perpetual futures, one of the most popular crypto-settled derivatives products, to Vega’s open and permissionless network was a highly requested feature from the community.
The Vega Blockchain:
Since its alpha mainnet launch in March, Vega has witnessed over $850 million in trading volume from its futures markets alone. The platform’s whitepaper, released in 2018, outlined a performance-optimized blockchain with a Tendermint proof-of-stake consensus mechanism. Vega was specifically designed to meet the demanding requirements of crypto derivatives trading, offering low latency, high scalability, and featuring a decentralized limit order book (dCLOB) on its blockchain infrastructure.
Funding and Token Details:
Vega Protocol secured a $5 million seed funding round led by Pantera Capital in 2019. In 2021, the project raised an additional $43 million through a community token sale on CoinList. The Vega token, used for securing the network through validators’ staking, currently trades at a price of $1.2 with a market capitalization of $70 million.
Conclusion:
Vega Protocol’s of perpetual futures markets on its blockchain network demonstrates its commitment to innovation and community-driven governance. By allowing community members to propose and vote on assets and expanding settlement options beyond stablecoins, Vega aims to provide a unique and flexible trading experience. As Vega continues to attract traders and investors, its performance-optimized blockchain and decentralized limit order book position it as a formidable player in the crypto derivatives trading space.