Vega Protocol unveils decentralized perpetuals on Layer 1 blockchain

Quick Take

  • Vega Protocol has rolled out perpetual futures on its derivatives-focused trading blockchain.
  • The community members can decide specific assets for which perpetual markets will be created.

Trading-focused blockchain Vega Protocol today rolled out perpetual futures markets, a type of futures product with no expiration dates, on the network.

These perpetuals on Vega come in addition existing offerings provided since Vega’s mainnet release in March 2023, including cash-settled futures markets

They will be permissionless, meaning community members will propose and vote to decide specific assets for which perpetual futures will be created. With this development, Vega is wading into a crowded field that includes dYdX, GMX, Gains, Synthetix, Perpetual Protocol and several others.

Vega wants to differentiate its perpetual offering by granting the community the power to leverage on-chain governance for the introduction of permissionless markets.

Furthermore, the project's community-led governance will have the option to approve any ERC-20 token for settlements via its governance mechanism, diverging from the norm of limiting settlements to USDC or equivalent stablecoins.

“This release is a huge step forward for Vega and next generation DeFi. It brings perpetual futures, the most popular crypto-settled derivatives product — and one of the community’s most requested features — to Vega’s open and permissionless network," said Barney Mannerings, co-founder of Vega Protocol VEGA -3.23% .


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The Vega blockchain

Since its alpha mainnet launch in March, Vega has seen over $850 million in trading volume from its futures markets alone, according to data provided by the team.

The project released its whitepaper in 2018, detailing a performance-optimized blockchain with a Tendermint proof-of-stake consensus mechanism. Vega was designed to meet the intense requirements of crypto derivatives trading, offering low latency and high scalability, and features a decentralized limit order book (dCLOB) on its blockchain infrastructure.

In 2019, Vega secured a $5 million seed funding round led by Pantera Capital and raised an additional $43 million through a community token sale on CoinList in 2021.

Vega Protocol is secured by validators who participate by staking the Vega token. This token currently trades at a price of $1.2 with a market capitalization of $70 million, according to The Block's price data.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Vishal Chawla is The Block’s crypto ecosystems editor and has spent over six years covering tech protocols, cybersecurity, artificial intelligence and cloud computing. Vishal likes to delve deep into blockchain intricacies to ensure readers are well-informed about the continuously evolving crypto landscape. He is also a staunch advocate for rigorous security practices in the space. Before joining The Block, Vishal held positions at IDG ComputerWorld, CIO, and Crypto Briefing. He can be reached on Twitter at @vishal4c and via email at [email protected]