Vexchange — a decentralized exchange, based on the VeChain blockchain. Vexchange allows all VeChain users to perform atomic swaps between VET, VTHO and all VIP180 tokens such as SHA, PLA and DBET. Support for OCE and TIK will appear soon.
Contents:
- Brief information about Vexchange
- Differences from other blockchain projects
- Security validation of the defi app
Brief information about Vexchange
Vexchange guarantees liquidity by introducing rates. The owner of the token has the ability to create a pool for each trading pair. In return, he receives a share of Vexchange's profits. Developers have come a long way, moving from a simple swap service to a fully functional DEX. The new exchange will allow users to connect, using a Web3 wallet (Arkane or Comet), to transact in a decentralized manner. Users can also run the interface locally if they so choose. The project does not have a White Paper document and a Roadmap. To get more detailed information and follow the latest news, subscribe to the community in the telegram.
Differences from other blockchain projects
Instead of using an order book, Vexchange uses liquidity pools to set prices between two currencies. Basically, a particular market (VTHO/VET) will contain two reserves (balances), one from VET and one from VTHO. These reserves are assumed to be equal in value, so price = reserve A / reserve B. Prices change with each trade as users add and remove assets from the reserves. To reduce price fluctuations, users can deposit additional funds to provide more liquidity for traders.
Platform advantages:
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Incentives for liquidity providers |
Since the DEX is dependent on liquidity from users, it is necessary to incentivize liquidity providers. To do this, a part of exchange fees is distributed among liquidity providers. |
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Preparation for active trading |
To encourage early liquidity distribution, the exchange will send additional tokens to various markets (which will be shared by liquidity providers) as well as take market action to help to keep the DEX price stable. |
| Tools for the job | The platform contains the financial instruments necessary to build an efficient and powerful ecosystem on VeChain. |
The developers have decided to launch liquidity analysis before enabling full trading functionality on the DEX. This will act as a grace period to build up an underlying level of liquidity before the DEX starts to see heavy usage from traders.
Security validation of the defi app
For regular traders, there is no need to deposit funds to the exchange before trading. On Vexchange, all your assets remain in your wallet until you complete a trade, after which they are immediately returned. This greatly reduces your risk exposure as you can keep your entire trading balance in your own wallet.
Since your assets are stored in our smart contracts for longer periods of time, the platform has been thoroughly audited by SmartDec, which passed without any critical vulnerabilities. All low and medium issues have been fixed. In addition, you can check the smart contract audit report on the site.