Vela Exchange, formerly known as Dexpools, was initially focused on providing an over-the-counter (OTC) trading protocol. In order to pursue a brighter future, the team rebranded the platform as Vela Exchange in October 2022. While still maintaining its OTC trading functionality, the protocol shifted its focus to the development of spot and derivatives trading.
Vela Exchange's three main features are as follows:
- Perp: This feature allows users to leverage their trades with up to x30 for cryptocurrencies and x100 for Forex.
- Spot: The platform offers fast spot trading with low slippage.
- OTC P2P: This feature is used for trading tokens on various EVM chains with minimal slippage around 0.
The $VLP token serves as liquidity provider (LP) tokens for Vela Exchange. It is minted using USDC sent by users. Users can withdraw their USDC after a 3-day lock-up period. By minting $VLP, users can stake them to earn profits from the protocol's revenue, profit from the price differential of $VLP if traders experience losses, and receive $eVela rewards. You can think of LPs as similar to bookmakers, where traders are betting against the LP. If traders win, the LP loses, and vice versa.
Notable features of Vela Exchange include:
- LPs are backed by 100% USDC, reducing price volatility risk.
- Advanced features like linked orders and multiple take profits for a single position (similar to centralized exchanges, a feature that is less common among DEXs).
- Real-time notifications.
- The overall transaction fees are reportedly cheaper than major competitors like GMX and GNS.
- The platform is developed by a team with prior experience in building dApps, and the team members are publicly known.
To stand out, Vela Exchange needs distinct advantages such as allowing trading of a wider range of assets, lower transaction fees, expanding to multiple chains, implementing marketing campaigns similar to the Hyper event, and forming partnerships for farming $Vela with competitive APY rates.
Regarding tokenomics, the design appears well thought out. A significant portion of the tokens are allocated for community activities and the protocol. The percentage of tokens allocated to the team and advisors is reasonable, and they are subject to vesting with appropriate quantities. Show Less
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