# The vertical-integrated Dex Vertex Protocol

By [Brillian Research](https://paragraph.com/@brillian-research) · 2023-06-30

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**_Risk Warning: This report is an internal analysis by Brillian Research and is not intended as investment advice. The cryptocurrency market is a high-risk investment and investment assets are subject to various possibilities of loss and return to zero, so please be aware of the risks!_**

The vertical-integrated Dex @vertex\_protocol, built on Arbitrum, has shown impressive performance:

*   2b accumulated trading volume.
    
*   40m average daily trading volume in the past 2 weeks.
    

Let's discuss the features of this DEX that combines spot, perpetual, and money market.

1/ Intergrading different markets
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*   In Vertex, one can trade spot, go long or short assets (10x max), and earn passive income by providing liquidity.
    
*   Users can conveniently monitor all their positions in a unified interface, enabling easy capital control and risk management.
    

2/ Hybrid Orderbook AMM Design
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*   Vertex integrates a fully on-chain trading venue and risk engine at the protocol level, with an off-chain sequencer layered on top, creating a hybrid orderbook-AMM DEX.
    
*   This design enables orders to be matched with ultra-low latency (10-30 milliseconds), while automatically obtaining the best available price from limit orders and LP positions, effectively reducing transaction costs for users.
    

![Image credit: Vertex](https://storage.googleapis.com/papyrus_images/97d07df5521889fe1ba791d97a3397ba5efb52cd42eebb55081062cc4f23373e.jpg)

Image credit: Vertex

3/ Universal Cross Margin
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*   Universal cross margin allows users' portfolio to serve as collateral for multiple open positions, which can: 🌠Reduced margin requirements 🌠Improved risk management 🌠Increased capital flexibility
    
*   One can create sub-accounts to isolate margin.
    

4/ Low transaction fees
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*   Vertex offers competitive trading fees comparable to CEXs, providing fees as low as 1 bps for price takers, and zero fees for price makers.
    
*   The low transaction fees play a vital role in attracting a high volume of transactions to Vertex.
    

![Image credit: Vertex. May be adjusted by official announcement of Vertex program.](https://storage.googleapis.com/papyrus_images/bfc15fd851460b86fc7861d1004af8cd0e96673a885f96f26cfa13029f59cb9f.jpg)

Image credit: Vertex. May be adjusted by official announcement of Vertex program.

5/ Opportunity of trade to earn
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*   To attract more users, the project will allocate 9% of $VRTX as airdrop rewards during its Initial Token Phase.
    
*   In the Ongoing Emissions Phase, 37% of the token supply will be distributed as rewards.
    
    More reward details: [https://vertex-protocol.gitbook.io/docs/community-token-and-dao/trade-and-earn-program](https://vertex-protocol.gitbook.io/docs/community-token-and-dao/trade-and-earn-program)
    

6/ Tokenomics
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*   $VRTX is the governance token that can be used to pay for fees and purchase assets.
    
*   By staking $VRTX, users can receive the transferable liquid staking token $xVRTX. Holders of $xVRTX can participate in governance and share the protocol revenues.
    
*   To obtain the protocol's non-transferable voting token $voTRTX, users need to pledge $xVRTX or deposit $xVRTX into the insurance fund. $voVRTX increases voting power and enhances holders' share of fees and emissions.
    

In conclusion, Vertex offers lightning-fast trading, universal cross-margining, and a customizable user-friendly interface. Vertex merges the advantages of DEX and CEX, providing self-custody and fast trading. It is driving DEX towards higher development.

References
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*   Vertex Official Website:
    

[https://vertexprotocol.com/](https://vertexprotocol.com/)

*   Vertex Official Twitter: @vertex\_protocol
    
    [https://twitter.com/vertex\_protocol](https://twitter.com/vertex_protocol)
    

Thanks to Vertex for the images data of _Covering Page_, _Orderbook AMM_, and _Trading Fees_ from its official website and Twitter. Other data information above are also from the official website and the Twitter.

**❗_Risk Warning: This report is an internal analysis by Brillian Research and is not intended as investment advice. The cryptocurrency market is a high-risk investment and investment assets are subject to various possibilities of loss and return to zero, so please be aware of the risks!_**

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*Originally published on [Brillian Research](https://paragraph.com/@brillian-research/the-vertical-integrated-dex-vertex-protocol)*