💰Trade & Earn

Vertex users can earn trading rewards via simply trading on the DEX.

The Trade & Earn program is designed to align long-term incentives between users and the future growth of Vertex by rewarding users for their activity. The program comprises token incentives allocated to users pro-rata based on their trading activity over the course of each program epoch.

Dual trading rewards are currently available to Vertex users in both:

1. VRTX

2. ARB

You can find a breakdown of the trading rewards for both tokens on Vertex in the sections below.

Trade more, earn more.

$VRTX Trading Rewards Program

Vertex’s native rewards program incentivizes users via the VRTX token to perform various actions within the Vertex app. VRTX rewards are available to anyone interacting with the protocol based on several qualifying conditions and parameters iterated in this section.

Known as the Trade & Earn program, rewards in the VRTX token are allocated to users pro-rata relative to the total pool size of VRTX tokens earmarked for each epoch of the rewards program.

The Trade & Earn program is designed to align long-term incentives between users and the future growth of the Vertex protocol by rewarding users for their activity with VRTX tokens.

Please refer to the section here for details about the VRTX Tokenomics.

The VRTX token rewards program comprises the VRTX tokens earmarked for the Ongoing Incentives Phase and Initial Token Phase portions of the VRTX token supply distribution, reflecting the following percentage allocations of the 1 billion total VRTX tokens.

• Ongoing Incentives = 34.0%

• Initial Token Phase = 10.0%

• Total Available VRTX (Trade & Earn Program) = 44%

It’s important to clarify the difference between the two phases of the Vertex Trade & Earn program where VRTX rewards are distributed to users:

1. Initial Token Phase

2. Ongoing Incentives Phase

Both phases are enumerated in detail in the sections below.

Initial Token Phase

The first phase of the Trade & Earn program was the Initial Token Phase, comprising 10.0% of the total VRTX supply. The Initial Token Phase ran for 7 months from the Vertex mainnet launch on Arbitrum in April 2023 until November 8th, 2023.

The Initial Token Phase was primarily a trading incentive program with the principal objectives to:

• Incentivize traders to use various aspects of the Vertex application.

• Augment market liquidity on Vertex.

• Offer users an avenue to share in protocol growth by contributing to the DEX.

The 10.0% of the VRTX supply in the Initial Token Phase consisted of a pool of VRTX tokens that were earned per user -- pro-rata every epoch.

Summary of Parameters defining the Initial Token Phase include:

• 1 Epoch = 28 Days

• Total VRTX Tokens in Pool = 100,000,000

• Total Epochs = 7

Ongoing Incentives Phase (Active)

The second part of the Trade & Earn program is the Ongoing Incentives Phase, comprising 34.0% of the total VRTX token supply. VRTX trading rewards are available to both takers and makers on Vertex.

11/08/2023: The Ongoing Incentives phase is currently active, which began with Trade & Earn Epoch #8.

• Any VRTX trading rewards accrued via the Ongoing Incentives Phase are claimable 3 days after an Epoch concludes.

• Any VRTX rewards that remain unclaimed for the subsequent 30 days will be returned to the Protocol Treasury.

The Ongoing Incentives Phase represents the Trade & Earn rewards portion of Vertex's ongoing emissions schedule for the next 6+ years.

There are no restrictions on token rewards, meaning there is no vesting period nor is there a cap on the value of rewards.

Monthly VRTX Token Allocation Emissions Breakdown:

• https://docs.google.com/spreadsheets/d/1iLKBY7uoiYpa7lVzYuCK6HRCOJw-u4mnUR1CcD_OW3s/edit?gid=639807660#gid=639807660

Ongoing Incentives Phase Parameters:

• 1 Epoch = 28 Days

• Total VRTX Tokens in Pool = 340,000,000

• Total Epochs = 72+

VRTX Rewards Breakdown

The percentages of VRTX Trading Rewards allocated to each listed market on Vertex are defined below and updated in the Market Specifications section consistently to reflect any changes.

Taker Rewards

Users can earn VRTX by trading as a taker on Vertex throughout the Ongoing Incentives Phase of the Trade & Earn program.

Trading rewards for takers are distributed in VRTX. The pool of incentives is split and distributed proportionally to traders based on their taker fees paid. Please refer to the section here for more details on the calculations.

The VRTX rewards for users are displayed on the Rewards Page of the Vertex app.

The following changes for Taker Rewards are actively in effect moving forward:

• Spot Markets: The ARB, ETH, and BTC spot markets will have their own allocation for VRTX token rewards -- meaning they will no longer be combined with corresponding perpetual markets.

• USDT Taker Rewards: The USDT taker rewards will be capped at a maximum of 5%. In other words, a minimum of 95% of a given epoch's taker rewards will be calculated across all markets excluding stable-pairs.

You can find further details on the cross-chain fee structure via Vertex Edge in the fee section of the Vertex docs.

Trading Fees

Maker Rewards

Makers qualifying for the Vertex Maker Program can earn VRTX rewards. The market specifications table below displays reward percentages per market.

The table explicitly refers to Maker rewards. It does NOT reflect Taker rewards.

The Maker reward percentages allocated to each market below are subject to change following new listings and will be updated accordingly.

The Ongoing Incentives Phase separate reward functions into different categories of users across Vertex’s core products. For more details on user types on Vertex, please refer to the fees section covering the subject here.

VRTX Rewards Distribution Cross-Chain -- Edge

Each of the Arbitrum and Mantle instances for Vertex Edge have their own market specs and maker reward weights to support each blockchain’s native economy.

• Total Reward Pool: There is a total amount of VRTX tokens allocated for rewards for each epoch (~28 days), which is then split between the two chains (Arbitrum & Mantle).

• Dynamic Reward Allocation: The distribution of rewards is dynamically adjusted based on the activity and performance metrics of each chain.

• Incentivization: This method aims to balance incentives across both chains, encouraging active participation and liquidity provision where it is most needed.

Examples:

• More maker activity on Arbitrum via Edge = More VRTX maker rewards on Arbitrum.

• More taker activity on Mantle via Edge = More VRTX taker rewards on Mantle.

The Rewards Page on Vertex (Arbitrum) will show Arbitrum-only VRTX rewards but will be the single location for users to claim rewards across all chains supported by Edge.

The Rewards Page on Mantle will display VRTX rewards specific to that chain.

Maker & Taker Reward Calculations

VRTX Maker Rewards:

• X VRTX will be given to makers on Arbitrum.

• Total / 2 - X VRTX will be given to makers on Mantle.

Maker Rewards Calculations:

• X / (Total / 2 - X) = sum(q_score, across products on Arbitrum) / sum(q_score, across products on Mantle)

VRTX Taker Rewards:

• Y VRTX will be given to takers on Arbitrum.

• Total / 2 - Y VRTX will be given to takers on Mantle.

Taker Rewards Calculations:

• Y / (Total / 2 - Y) = Total Taker Fees on Arbitrum / Total Taker Fees on Mantle

Vertex Maker Program

Vertex’s trading fee structure is supplemented by the Vertex Maker Program, a rebate-based trading fee incentive program for price makers that contribute in excess of 0.25% of maker volume in a given epoch.

• 1 Epoch = 28 Days

Maker Rebates

Additionally, the Maker Program offers VRTX token incentives allocated to a scoring function that prioritizes:

• Market Support

• Uptime

• Fees

The scoring function is as follows:

The minimum depth and maximum spreads per market are as follows:

Depth:

• $25K for stables.

• $5K for core markets (BTC & ETH).

• $2.5K for alt markets (non-BTC & non-ETH).

Spreads:

• 10 bps for stable.

• 30 bps for core markets (BTC & ETH).

• 50 bps for alt markets (non-BTC & non-ETH).

Any future VRTX earned by users during the Trade & Earn program's Ongoing Incentives Phase are viewable on the Rewards Page of the Vertex app.

Sequencer Fees are not included in the Trading Rewards calculations for either makers or takers -- meaning they do not generate VRTX rewards.

$ARB Trading Rewards

Users can immediately begin earning ARB rewards by trading on Vertex.

The Arbitrum token (ARB) incentives available to Vertex users are sourced from Vertex’s recently successful STIP-Bridge proposal to the Arbitrum DAO.

• Total ARB Rewards Available = 1.5 million ARB

• Duration = 12 Weeks

• Start Date = Monday, June 24th @ 13:00 UTC

• End Date = Monday, September 16th @ 13:00 UTC

The first ARB rewards will be claimable directly on the Rewards Page of the Vertex app on Wednesday, July 3rd 2024.

ARB Rewards Mechanism & Distribution

Compared to Vertex’s original STIP proposal to the Arbitrum DAO, the current ARB rewards from the STIP-Bridge are distributed via a similar mechanism that was highly successful with the original ARB rewards program.

Users can earn a portion of the available ARB trading rewards on Vertex based on:

1. Trading Activity = 1.2 million ARB

2. Elixir LPs = 150K ARB

3. Skate LPs = 150K ARB

A breakdown of each category's ARB rewards allocation and mechanism are listed below.

Trading Activity (Taker)

• Total ARB Available = 1.2 million

• Duration = 12 Weeks

The ARB rewards based on trading activity comprise the bulk of the available token incentives and are awarded to takers.

Rewards are calculated based on the trading fees paid by participants, with a maximum of 75% of the taker fee paid being returned as rewards.

Each week is considered an independent epoch (12 total), and rewards are distributed based on the activity within that epoch.

• Total ARB Rewards Available per Epoch (1-Week) = 100,000 ARB

• Trading Rewards = Min [USD Volume * Trading fees * 75%, 100K ARB per epoch]

For example, if a trader pays $100 in taker fees in a given 1-week epoch, they can earn up to $75 in ARB rewards before the next epoch begins.

→ Claim Your ARB Rewards: https://app.vertexprotocol.com/rewards

Elixir LPs

• Total ARB Available = 150,000 ARB

• Duration = 12 Weeks

Similar to the original Vertex STIP proposal, Elixir LPs can earn ARB rewards. Elixir’s Fusion Pools allow retail users to LP orderbook pairs on Vertex and accumulate both ARB and VRTX trading rewards.

Elixir Fusion Pools on Vertex have a baseline APR of 15% in ARB on their assets depending on the vault size. If the total value locked (TVL) in Elixir pools does not reach the maximum capacity at any time, the remaining ARB incentives will be carried over to the next epoch (e.g., week).

You can access Elixir’s pools by navigating to the [Earn] tab of the Vertex app and clicking on [Elixir Vaults].

Skate LPs

• Total ARB Available = 150,000 ARB

• Duration = 12 Weeks

Vertex and Skate (formerly Range Protocol) recently partnered to introduce Skate's orderbook LP vaults on top of major perpetual markets listed on Vertex.

Skate LPs can earn a portion of the available ARB rewards by depositing USDC into "The Majors" vault on the Vertex app. The vault deploys an advanced market-making strategy on the back-end with delta-neutral exposure across both maker and taker side flows.

LP yields are boosted by funding rate arbitrage using Skate’s RFQ-based spot leg infrastructure. Yields are further supported by both $VRTX and $ARB incentives.

Skate’s vault on the Vertex app currently encompasses the BTC-PERP & ETH-PERP markets.

Deposit USDC into the Skate Vault -> https://app.vertexprotocol.com/vaults

Announcement: https://x.com/vertex_protocol/status/1808555892901883942

Rewards Page

The Rewards Page is located on the Vertex app and contains all of the relevant information for users related to their current VRTX and ARB reward distributions.

The Rewards Page serves as a hub for users to track their trading rewards for:

1. The Ongoing Incentives Phase for the remainder of the VRTX token emissions schedule.

2. ARB Trading Rewards (STIP-Bridge Program)