Stake VRTX
Tutorial on how to generate voVRTX & earn rewards.
Last updated
Tutorial on how to generate voVRTX & earn rewards.
Last updated
Staking VRTX will be enabled shortly after the LBA concludes and the VRTX Token Launches on November 20th. The section below contains:
An Overview of Staking VRTX.
How to Stake VRTX.
How to Withdraw Staking Rewards.
How to Unstake VRTX.
How to Claim Unlocked VRTX.
For the full overview of the VRTX Tokenomics, including voVRTX, please refer to the section here.
The utility of VRTX orients around providing an incentive structure that encourages long-term participation in the health and development of the ecosystem.
The utility of VRTX within the scope of the DEX includes:
Staking VRTX as means to contribute to the safety of the Vertex ecosystem.
Rewarding variable levels of contributions and commitments to the protocol over the long-term. Rewards are designed to incentivize ongoing participation by contributors who either transact or trade on the protocol, perform off-chain marketing, or provide referral activities.
Staked VRTX is required to participate in the protocol's incentive program as both an indicator of a user’s commitment and assurance of standards. Beyond this requirement, staking VRTX generates a user score, known as voVRTX, that also plays a significant role in incentivizing security and long-term commitment to the protocol.
Users that stake VRTX also generate the voVRTX token score – a non-transferable sub-type of the VRTX token with an explicit role. Primarily, voVRTX is an incentive lever that mediates a multiplier effect on incentives for VRTX stakers -- proportional to the amount of time their VRTX is staked.
Users can view voVRTX as analogous to a “User Score,” where the amount generated increases proportionally to the longer duration a user's sub-account consistently stakes VRTX.
Users that stake VRTX longer than others display more dedication to the long-term success and security of the protocol by means of the opportunity cost in the potential utilization of that capital elsewhere.
voVRTX boosting is primarily intended to achieve several goals:
Encourage long-term staking of VRTX.
Increase active user participation in the protocol.
Benefit Vertex contributors with long-term perspectives.
Generating voVRTX is also not strictly correlated to the duration that VRTX is staked on Vertex either.
For example, a user’s voVRTX, which generally represents the user's contributions and associated incentives earned, would increase concurrently with other net-positive contributions to the protocol, including but not limited to:
Level of Activity
Length of Commitment
Insurance Fund Staking
NOTE: Insurance Fund Staking will not be available until Q2 2024, and is not covered here. Staking VRTX in this section refers specifically to the functionality available to users with VRTX shortly after the LBA.
Vertex, like any exchange venue, derives its primary revenue source from trading fees. Denominated in basis points (BPs), a percentage of the notional position size when filled, trading fee revenue scales proportional to the demand for trading on a given exchange venue.
Over extended durations, users demonstrating a long-term commitment to the protocol through various contributions and efforts to participate in the ecosystem (measured based by their voVRTX score) are eligible to receive rewards – derived from a percentage of the protocol revenue.
Up to 50% of all trading fee revenue generated by Vertex in a single epoch, excluding sequencer fees, will be allocated to the Protocol Treasury and used as rewards. Rewards are subsequently disbursed to users based on their long-term participation and commitment to the protocol.
The specific percentage of trading fee revenue allocated to the Protocol Treasury and used as rewards will be determined on an epoch-by-epoch basis to reflect the changing needs of the protocol.
Protocol Rewards from Staking VRTX are distributed to users as USDC.e rewards on a weekly basis. Weekly distributions of USDC.e will continue throughout every Epoch of the Trade & Earn program and are claimable on the Vertex app.
11/09/2023: Epoch #8 is currently active. It is the first Epoch of the Ongoing Incentives Phase of the Trade & Earn program.
VRTX Stakers: First USDC.e Rewards Distribution = 1 Week After the LBA
Step 1. Go to "Staking" on the VRTX Token Page.
-> Click on the VRTX in the navigation bar.
-> Select VRTX Token page.
-> The first tab will be the staking page.
Step 2. Press on the [Stake] button. A pop-up will appear.
Step 3. Enter the amount of VRTX you want to stake. Staking is done from your wallet so you will need to approve the use of VRTX.
Step 4. Press on [Approve] and sign the transaction in your wallet.
Step 5. Expand the summary to see full details. After the approval, the button will change to stake.
Step 6. Press [Stake] if everything looks good.
Step 7. Sign the transaction in your wallet.
Step 8. You have successfully staked VRTX!
You can view your updated stats on the Staking Page.
You can withdraw staking rewards on the same VRTX Token Page's Staking tab as detailed above.
If you have available Rewards to Withdraw, follow these steps:
Step 1. Click on the [Withdraw Earnings] button.
Step 2. Sign the transaction in your wallet.
Step 3. You have successfully withdrawn your rewards from staking VRTX! You will receive the USDC.e directly into your wallet -- NOT your Vertex account.
Step 1. Press on the [Unstake] button on the VRTX Token Staking page.
Step 2. A pop-up will appear. Enter the amount of VRTX you wish to Unstake.
Step 3. Open the summary to view the full details of the Unstake action you wish to perform.
Step 4. Once ready, press the [Unstake VRTX] button, and sign the transaction in your wallet.
Step 5. You have successfully Unstaked VRTX!
Unstaked VRTX takes 14 days to unlock before it becomes claimable in your wallet.
Your Unstaked VRTX will be reflected in your "Unstaked Details" on the VRTX Token page.
Unstaked VRTX takes 14 days to unlock, at which point you can claim the VRTX directly to your wallet.
To claim Unlocked VRTX:
Step 1. Press on the [Claim Unstaked] button on the VRTX Token page's "Staking" tab.
Step 2. Sign the transaction in your wallet.
Step 3. You have successfully claimed the Unlocked VRTX tokens! You will receive the VRTX in your wallet -- NOT your Vertex account.
For more details on the VRTX Tokenomics, please refer to the section here.
For more details on the VRTX Supply Distribution & Emissions, please refer to the section here.
If you have any questions regarding the VRTX Token Launch after the LBA, please open a ticket in Discord.
As always, follow the Vertex journey on Twitter to be the first to know about updates.
Vertex provides a decentralized protocol for trading spot digital currencies and perpetual contracts. Vertex is not authorised or regulated by the Financial Conduct Authority (FCA) or any other regulator. Since cryptocurrency markets are decentralised and non-regulated, our cryptocurrencies trading services are unregulated services which are not governed by any specific UK, European or other regulatory framework (including MIFID or MiCA). Therefore, when Vertex customers use our cryptocurrencies trading service, they will not benefit from the protections available to clients receiving regulated investment services.
Vertex customers using the cryptocurrencies trading service will not benefit from the protections available to clients receiving regulated investment services such as access to the Financial Services Compensation Scheme (FSCS) and the Financial Ombudsman Service for dispute resolution. All of our products carry a high degree of risk and are not suitable for many investors. It is important that you fully understand the risks involved before deciding to trade with Vertex, that you have adequate financial resources to bear such risks and that you monitor your positions carefully. Trading involves risk to your capital. You should not invest money that you cannot afford to lose. You should seek professional advice if you do not fully understand and accept the risks of investing in the products offered by Vertex. You should review our Statement of Risk before investing.
