Key Points:
- The decentralized derivatives platform Vest Exchange announced the completion of a seed round of financing.
- Investors include Jane Street and QCP Capital.
- It is reported that Vest Exchange is a decentralized perpetual contract platform based on Arbitrum.
Vest Exchange, a decentralized perpetual futures exchange (DEX) on Arbitrum, announced the completion of a seed round of financing from Jane Street, QCP Capital, Big Brain Holdings, Ascendex, Builder Capital, Infinity Ventures Crypto, etc.,
Although perpetual futures are the most widely used crypto primitive, the following issues have not yet been addressed by current exchanges:
- High obstacles to listing on the market. Because their procedures can’t adjust to difficult market situations, current exchanges are hesitant to list long-tail markets. As a result, there is no fresh exposure to long-tail assets, and the same markets are continually included in DEXs.
- Insufficient risk management. Multiple protocols were shut down, and DeFi lost millions of dollars in 2022 alone as a result of market manipulation and oracle assaults.
- Risk/returns for liquidity providers are unclear (LPs). LPs are subject to a variety of risks, including adverse selection and bankruptcy. Exchanges try to make up for this by charging large trading commissions.
Vest Exchange hopes to solve the problems of high listing threshold, lack of risk management, and unclear risk/reward of LP. The exchange will soon announce a testnet.
Vest is a risk-first, non-custodial protocol that empowers users to trade perpetual futures on almost any asset. It unlocks new illiquid markets quicker than any other centralized or decentralized exchange by combining coherent risk metrics with the microstructure of perpetual future markets.
Vest Labs is a crypto research firm building useful primitives to enable a fairer system for all traders. The team aims to do just that for traders. They will make the first stride by building a decentralized perpetual futures exchange (Vest Exchange) where traders can speculate on almost any asset.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
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