Vortex: A multi-chain liquidity aggregation DEX based on the ZK-SNARKs protocol, capturing value in layer two transactions
Vortex has opened OrderBook spot trading on the BSC chain, providing trading incentives, liquidity provision incentives, and burn incentives through the core governance token VTX, while sharing transaction fee revenue with node users. This article will delve into Vortex's product features and latest activities.1. About Vortex
Vortex is a multi-chain liquidity aggregation exchange based on the ZK-SNARKs protocol, dedicated to providing fully decentralized spot and perpetual contract order book trading. Currently, the daily trading volume on the BSC chain is approximately $8 million. In addition to basic trading products, Vortex will gradually launch RWA products and ERC 6551-based trading identity NFTs. Vortex incentivizes traders through trading mining, burn mining, liquidity provision, and invitation programs.
At the same time, the layer two scalable engine can achieve a transaction execution speed of 10ms. Vortex also encourages users to become liquidity providers for the Orderbook, allowing users to earn token rewards through trading and additional incentives by providing liquidity.
Vortex has currently opened spot trading on the BSC chain Orderbook, with trading incentives, liquidity provision incentives, and burn incentives conducted through the core governance token VTX, sharing transaction fee revenues with node users. This article will delve into the product features and latest activities of Vortex.
2. Introduction to Orderbook Trading Mechanism
On the Vortex platform, users can engage in OrderBook spot trading and perpetual contract trading. As an L2 exchange, users need to deposit funds from their L1 wallets (such as MetaMask) into the corresponding L2 account before trading, and then use the funds on L2 to trade on Vortex (buy, sell, open positions, close positions). Of course, users can complete deposits, withdrawals, and transfers of L1 assets and L2 assets under their user address at any time.
The Vortex account system is divided into spot accounts and perpetual contract accounts, which are independent of each other.
In Vortex's OrderBook spot trading, the system can real-time aggregate prices from leading CEXs and automatically perform hedging arbitrage. This means that regardless of market price fluctuations, users can trade at optimal prices. Additionally, users can choose between market orders or limit orders for trading.
In Vortex's OrderBook contract trading, Vortex adopts a funding rate model to balance the contract prices with the market prices of the underlying assets, thereby maintaining the stability of the trading market and the accuracy of contract pricing.
At the same time, Vortex's funding rate model provides traders with a more stable and predictable trading environment. However, traders need to be aware of the impact of funding rates on long-term positions and that deviations between contract prices and index prices may incur certain trading costs.
3. Encouraging Users to Become Orderbook Liquidity Providers
Vortex also encourages users to become market makers and share liquidity incentives. 16% of VTX token rewards will be used to incentivize users' liquidity provision. Vortex will reward users based on order volume, uptime, and bidirectional trading depth. Users can provide liquidity for the OrderBook by placing deep orders for trading pairs such as BTC/ETH/BNB/DOGE. Rewards for trading mining will be distributed uniformly after 30 days. It is important to note that this incentive reward only applies to deep orders within a ±0.2% price range of the corresponding token; orders outside the volatility range will not be eligible for rewards. Users are also required to ensure stable liquidity provision within the monthly cycle.
4. Trading Mining and Burn Mining
After the IDO, Vortex will launch trading mining (15% of token output) and burn mining (20% of token output). Users can earn VTX rewards by participating in trading on the Vortex platform; 15% of VTX tokens will be used for trading mining rewards (45 million VTX), generating 60,000 VTX daily, with this portion fully released over 25 months.
The trading mining rewards will be displayed on the day of the transaction; after 30 days, 50% of the daily trading mining output will be uniformly distributed, while the remaining 50% will automatically enter the burn mining pool of that account. After the launch of VTX, the APY for trading mining output is nearly 400%.
At the same time, burn mining is also an important output scenario for VTX. Users can indirectly complete token burns by purchasing VTX on the secondary market or through trading. Every 200,000 tokens burned triggers a reduction in output, with the burn mining head mine APR (compounded) exceeding 1000%. The total amount of tokens burned through burn mining is between 40 million and 50 million VTX, promoting positive growth in circulating market value.
5. Current Activities
Vortex has set up a dedicated activity interface on its official website to facilitate users' timely participation in activities related to Vortex. Currently, the official has launched three trading-related activities:
Complete spot trading of 1500 USDT + 100 trades to receive 600 points.
Complete 30 trades to receive 100 points.
Complete trading of 500 USDT to receive 150 points. Points will be exchanged for VTX at a ratio of 10:1 after the VTX IDO.
