Vega Protocol Launches On-Chain Trading Platform, Approves Use of USDC and USDT Stablecoins
Vega Protocol, a layer 1 blockchain focused on derivatives trading, has recently deployed its first on-chain trading platform after the mainnet launch in early May. The project’s community members have approved the decision to activate the trading platform, signaling a significant milestone for the Vega ecosystem. Additionally, the vote has given the green light for the utilization of stablecoins USDC and USDT for deposit and withdrawal activities through a bridge with Ethereum.
The Vega protocol aims to provide users with the ability to create decentralized and permissionless marketplaces. Initially, the network will support a derivatives platform with cash settlement functionality. However, the project plans to expand its offerings in the future to include spot markets, futures contracts, and other products.
gm! VMP-001 is currently on the verge of passing! We have approximately 3 hours left for voting! This decision will mark another significant milestone in the making of the Vega network 🔥
ICYMI VMP-004 & VMP-007 are also live on the Governance dApp 🗳
Take part in the action👇
— Vega Protocol (@vegaprotocol) May 23, 2023
Beyond trading purposes, the project team intends to introduce a browser-based electronic wallet, enabling users to connect with the Vega ecosystem through a web browser interface. Furthermore, the project incorporates a software component called Wendy, which provides on-chain traders with protection against MEV (Miner Extractable Value) exploitation.
Vega, as a layer 1 blockchain, launched its mainnet in October 2022 after five years of development. According to the whitepaper published in 2018, Vega aims to become a dedicated blockchain for applications, optimizing performance based on the proof-of-stake Tendermint consensus mechanism.
In 2019, the project successfully raised $5 million in a seed round led by Pantera Capital. Then, in 2021, Vega conducted a token sale of VEGA on the CoinList platform, generating $43 million in funding.
The deployment of the on-chain trading platform marks a significant milestone for Vega Protocol, showcasing its commitment to providing a decentralized and efficient marketplace for derivatives trading. By incorporating stablecoins such as USDC and USDT, Vega aims to enhance the liquidity and accessibility of its ecosystem, attracting a broader range of participants.
As the Vega ecosystem continues to develop and expand its offerings, it will be interesting to see how it competes with other blockchain-based derivatives platforms and how it addresses potential challenges such as scalability and regulatory compliance. Nevertheless, Vega’s focus on permissionless and decentralized trading has the potential to revolutionize the derivatives market, providing users with new opportunities and a more inclusive financial ecosystem.
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