VRTX Tokenomics
Defining the utility of the VRTX token within the Vertex Edge ecosystem.
Last updated
Defining the utility of the VRTX token within the Vertex Edge ecosystem.
Last updated
The VRTX token stands as the keystone of Vertex Edge’s synchronous network of decentralized exchanges (DEXs), built to unify spot trading, perpetual contracts, and money markets into a powerful synchronous orderbook.
Spanning multiple EVM-compatible chains, Vertex Edge combines the raw power of a high-performance matching engine with the transformative capability of unified cross-chain liquidity—all within a single orderbook.
But Vertex Edge doesn’t compete with monolithic blockchains; it transcends them, to forge liquidity highways that connect isolated blockchain silos into a vibrant and interconnected trading ecosystem.
In the relentless arena of DeFi, where user attention is as fleeting as market trends, Vertex Edge doesn’t just endure – it thrives. Always a step ahead, it positions itself to meet users on their home turf, ready to dominate as new, popular chains rise to prominence.
At its core lies VRTX, the engine powering a flourishing liquidity network that doesn’t just redefine how on-chain trading unfolds – it reshapes where the very boundaries of liquidity are drawn.
One Orderbook. Multiple Chains. Infinite Potential.
The refined VRTX tokenomics are crafted to drive sustainable growth, encourage widespread participation, and optimize the Vertex Edge ecosystem.
By curbing inflation through reduced emissions and redistributing rewards strategically, this framework caters to users with long-term commitments while fostering a collaborative ecosystem.
Participants, including liquidity providers, market makers, and stakers, benefit from equitable incentives. The re-engineered staking mechanisms balance flexibility with robust yield options, accommodating diverse user preferences—from instant rewards to long-term investments—thereby minimizing friction and boosting ecosystem engagement.
Rooted in forward-thinking incentives, the VRTX tokenomics blueprint ensures Vertex’s growth remains organic, sustainable, and competitive in a rapidly evolving DeFi landscape.
The Vertical Program introduced transformative changes to VRTX emissions and reward distribution, addressing critical areas while aligning the system with the protocol's broader goals and cross-chain expansion of Edge.
VRTX serves as a multi-functional asset designed to incentivize participation, deepen liquidity, and align stakeholder interests across the platform.
Vertex emits VRTX tokens as trading rewards to users on a regular basis. By actively participating, traders accumulate VRTX rewards simply by executing trades on Vertex spanning each chain supported by Edge.
The VRTX trading rewards are available to all Vertex users, including both makers and takers.
The Ongoing Incentives Phase is the active stage of Vertex’s Trade & Earn program, allocating 34% of the total VRTX token supply to reward both makers and takers on the platform.
With 340 million VRTX tokens distributed over 72+ Epochs, the Ongoing Incentives Phase represents a long-term commitment to rewarding traders.
Epoch Duration: 7 days
Total Rewards Pool: 340,000,000 VRTX tokens
A fixed pool of VRTX tokens are available to traders each epoch – weekly. VRTX rewards are allocated to users on a pro-rata basis relative to the total pool size of VRTX for that epoch of weekly trading.
The total pool of available VRTX trading rewards each epoch (weekly) are split between makers and takers as follows:
Makers = 75%
Takers = 25%
Weekly VRTX trading rewards are split between each chain supported by Vertex Edge based on cross-chain rewards calculations found here.
Under the revised VRTX framework, the distribution of rewards between market makers and takers has been optimized to prioritize liquidity between chains.
Market makers now receive 75% of rewards, a significant increase from the previous 50%, emphasizing their essential role in providing liquidity. The remaining 25% of rewards are allocated to takers, ensuring that trading activity remains incentivized but not at the expense of liquidity depth.
Overall, VRTX rewards emissions were reduced by 50% on September 11th, 2024.
Initially, the VRTX Rewards program was designed to boost liquidity and activity on the DEX. However, reduced emissions better align with the protocol's long-term strategy, redirecting token holdings to support broader growth initiatives beyond trading rewards.
Staking VRTX serves as a cornerstone for users to generate rewards and actively participate in the growth and sustainability of the Vertex Edge ecosystem.
The revised staking framework introduces a multi-tiered incentive system that rewards participants based on their contributions and commitments.
Immediate access to high-yield staking rewards that are auto-compounded for maximum returns. USDC from trading fees will be used to buy back VRTX.
The purchased VRTX is transferred to the staking pool to grow stakers’ participation in the protocol over time. This enhancement simplifies staking participation and boosts overall user engagement.
Stakers earn rewards from a diverse source of yields, including the Base APY (emissions), Fee APY (revenue buybacks), and Loyalty APY (penalties from unstaking). Each source of yield is further defined below:
Base APY: A portion of the VRTX emissions saved from reductions in trading incentives are allocated as additional yield for stakers. This yield starts at an annualized rate of 15% and gradually tapers to 1.5% over the course of three years.
Fee APY: Trading fees are used to buy back VRTX and add it to the staking pool. Initially, 50% of all protocol fees go toward these buybacks, gradually increasing to 100% of total protocol revenue.
Loyalty APY: Participants who bypass the 21-day cooldown period will incur a 10% early unstake penalty. The revenue from these penalties is redistributed as additional staking yield for long-term participants.
For users who prefer immediate access to their staked VRTX, there is an option to bypass the 21-day cooldown period by incurring a 10% early withdrawal penalty, reinforcing the program's focus on incentivizing patience and loyalty.
The penalties collected from immediate withdrawals will be redistributed to the following week’s yield pool, providing long-term stakers with enhanced rewards.
In any trading venue, especially decentralized exchanges like Vertex, market makers form the backbone of liquidity. Makers ensure traders can buy and sell assets with minimal slippage, even during periods of high volatility or subdued market activity.
VRTX is central to incentivizing market makers, who provide critical liquidity on the platform.
Maker rebates on Vertex are open to both users and firms seeking to perform market-making on Vertex. The program enhances the trading fee structure with a stratified rebate-based incentives design that rewards makers who actively support market liquidity.
Rebate rates are directly tied to the amount of VRTX staked by market makers. The more they stake, the higher the rebate. Market makers that stake VRTX can unlock significant fee rebates, scaling up to 0.75 basis points.
The stratified rebate model prioritizes the most committed participants, while still offering meaningful benefits to smaller players. By prioritizing liquidity provision, the protocol establishes a stable and vibrant trading venue that benefits all users while rewarding market makers for their essential contributions.
Vertex has revolutionized growth strategies for decentralized exchanges with Vertex Edge, a cross-chain liquidity solution designed to meet users exactly where they reside – their favorite chains.
Vertex Edge also builds strong synergies with each chain’s native projects, fostering collaboration and co-marketing opportunities that amplify the platform’s reach and credibility. The synchronous orderbook settles transactions locally to each chain plugged into Vertex Edge, increasing blockspace demand and attracting new chain-native incentive program opportunities for users.
For traders, this means a familiar and accessible experience without compromising on efficiency or depth of market. For developers and partners, Vertex Edge represents an enduring presence across chains, evolving alongside the broader ecosystem and avoiding the boom-bust cycles often associated with isolated app chains.
As trends shift and new chains rise to prominence, Vertex is already there, delivering a robust, interconnected network that thrives across diverse ecosystems.
VRTX underpins the protocol’s cross-chain strategy with Vertex Edge – expanding the token’s utility across diverse ecosystems, ensuring that users and liquidity providers remain engaged no matter what chain they choose for trading.
Vertex utilizes Chianlink’s CCIP product for cross-chain token transfers and messaging, enabling VRTX to be natively available on Arbitrum, Base, and Blast.
Ongoing plans to expand native VRTX token support to every chain plugged into Vertex Edge are underway.
The new VRTX tokenomics represent a transformative leap forward, reshaping the foundation of the Vertex Edge ecosystem to ensure sustainability, innovation, and long-term value creation. By systematically addressing inefficiencies in the prior model, this framework aligns the protocol’s growth with user-centric incentives, fostering active participation across stakeholders.
Trading rewards have been strategically restructured to promote liquidity depth and balance maker-taker dynamics, empowering market participants through equitable incentives.
Staking mechanisms have been redesigned to provide diverse, flexible options for users, encouraging both immediate engagement and sustained loyalty through tailored reward tiers and enhanced APY structures.
The Vertical Program’s phased approach, coupled with Vertex Edge’s cross-chain strategy, amplifies VRTX’s utility across diverse ecosystems. This ensures users and liquidity providers experience seamless integration, accessibility, and superior performance on their preferred chains.
By leveraging cutting-edge technology like Chainlink’s CCIP, Vertex positions itself as an adaptable and forward-looking DeFi platform, thriving across dynamic market conditions.
VRTX tokenomics embody a vision for an interconnected, multi-chain trading ecosystem that values inclusivity, sustainability, and innovation. With this robust framework, Vertex not only redefines the boundaries of decentralized finance but also establishes itself as a leading force in the ever-evolving DeFi landscape.
The VRTX token currently exists natively on multiple different chains with upcoming plans to expand to more chains supported by Vertex Edge.
VRTX Contract Address: 0xbbEE07B3e8121227AfCFe1E2B82772246226128e
VRTX Contract Address: 0x95146881b86B3ee99e63705eC87AfE29Fcc044D9
VRTX Contract Address: 0xFB0c734Fc3008683c5efF45bcf8128836C4D97D0
VRTX Contract Address: 0x6CD20f11470e9C9d1458a69c8f7B330B99577EF9
By using the Vertex Protocol of holding the VRTX token, users acknowledge that they have read, understand, and accept the risks described in both the Vertex Statement of Risk and Terms of Use.
VRTX does not in any way represent any shareholding, ownership, participation, right, title, or interest in Vertex Protocol or any of its affiliates, or any other company, enterprise or undertaking, nor will VRTX entitle token holders to any promise of fees, dividends, revenue, profits or investment returns, and are not intended to constitute securities in any jurisdiction.
VRTX may only be utilised on the Vertex Protocol, and ownership of the same carries no rights, express or implied, other than the right to use VRTX as a means to enable usage of and interaction within the Vertex protocol. The secondary market pricing of VRTX is not dependent on the effort of the Vertex team, and there is no token functionality or scheme designed to control or manipulate such secondary pricing.
VRTX is designed to be utilised, and it is highlighted that VRTX:
(A) does not have any tangible or physical manifestation, and does not have any intrinsic value (nor does any person make any representation or give any commitment as to its value);
(B) is non-refundable and cannot be exchanged for cash (or its equivalent value in any other digital asset) or any payment obligation by Vertex Protocol or any of its affiliates;
(C) does not represent or confer on the token holder any right of any form with respect to Vertex Protocol or any of its affiliates, or their revenues or assets, including without limitation any right to receive future dividends, revenue, shares, ownership right or stake, share or security, any voting, distribution, redemption, liquidation, proprietary (including all forms of intellectual property or licence rights), right to receive accounts, financial statements or other financial data, the right to requisition or participate in shareholder meetings, the right to nominate a director, or other financial or legal rights or equivalent rights, or intellectual property rights or any other form of participation in or relating to Vertex Protocol or any of its affiliates;
(D) is not intended to represent any rights under a contract for differences or under any other contract the purpose or intended purpose of which is to secure a profit or avoid a loss;
(E) is not intended to be a representation of money (including electronic money), payment instrument, security, commodity, bond, debt instrument, unit in a collective investment or managed investment scheme or any other kind of financial instrument or investment;
(F) is not a loan to Vertex Protocol or any of its affiliates, is not intended to represent a debt owed by Vertex Protocol or any of its affiliates, and there is no expectation of profit nor interest payment;
(G) and does not provide the token holder with any ownership or other interest in Vertex Protocol or any of its affiliates. Notwithstanding VRTX distribution or payment, users have no economic or legal right over or beneficial interest in the assets of Vertex Protocol or any of its affiliates.
01/31/2024: On occasion, the protocol team may elect to engage in open market or privately negotiated transactions in the VRTX token. These actions will be used to manage treasury needs or other strategic initiatives, including opportunistic purchases and sales based solely on the market price of VRTX. Such action will be considered on a forward-looking basis, and may include purchases or sales of VRTX tokens either through spot or derivative instruments. Purchases and sales may occur directly or through third-party intermediaries for the benefit of the Vertex Protocol.
Transactions in VRTX tokens by the protocol team may be designed to create economic incentives for third parties providing services to Vertex Protocol. VRTX tokens acquired in such transactions may be staked either by Vertex Protocol or other third parties with rewards accruing to either Vertex Protocol or to the third parties. Vertex Protocol may also stake VRTX tokens held in the Protocol Treasury directly. In this regard, any VRTX tokens staked for these purposes are expected to reduce the total amount of rewards available to the community as a whole. Periodic updates regarding our strategic initiatives will be provided to the community.
