Tonight #Blast the mainnet is online, and a total of 1.68 billion has been locked! After looking at the ecological projects, there is a#Dextrack project that is quite interesting. It was one of the winners of Blast’s Big Bang Competition (ratio of 46 out of 3,000). The layout is also good. All the $BLAST allocated by Blast to developers will be distributed to the community. After careful study, Blitz @tradeonblitz is the first spot/perpetual contract Dex built on Vertex Edge. Vertex Edge is the latest cross-chain synchronized order book liquidity layer launched by Vertex.
Let’s start with Vertex, a vertically integrated DEX on Arbitrum with spot, perpetual and comprehensive currency markets. The biggest highlight is speed. This relies on its innovative architecture that combines a unified central limit order book (CLOB) and an integrated automated market maker (AMM), also called hybrid orderbook-AMM. See the diagram in the white paper, as follows:
Vertex's off-chain sequencer acts as a high-performance central limit order book (CLOB) and can reduce MEV. As an independent node, the V2 version is decentralized through Vertex governance. The Central Limit Order Book (CLOB) allows users to have a CEX-like trading experience. The off-chain sequencer is connected to the on-chain integrated AMM, and the sequencer will automatically obtain the best available liquidity, allowing users to trade based on the on-chain integrated liquidity source. Due to the use of integrated AMM, liquidity will be more abundant, and Vertex V2 has launched multi-chain liquidity.
Some people may be worried about the reliability of the off-chain sequencer. Vertex has also designed a risk engine on the chain. When the off-chain sequencer is under maintenance, shutdown or other unforeseen circumstances, the AMM chain upper layer will act as the backing of the protocol, so that Users can trade only for AMM without an order book, but the speed is relatively slow, so it is called the "Slo-mo" mode.
In terms of asset security, the off-chain sequencer only matches orders. The user’s assets are still in their own hands and require the user’s signature to perform on-chain operations.
For speed reasons, the oracle used by Vertex is Stork, which ensures that Vertex’s reference prices are provided at the millisecond level, comparable to the data speeds used by CEX and TradFi exchanges.
After talking about the technical architecture, let’s look at the design of the trading mechanism:
Vertex uses universal cross margin by default, and the user's trading account will consolidate liabilities to offset the margin between positions, which means that all of the user's portfolio can serve as collateral for multiple open positions. This design can reduce the risk of margin calls and forced liquidation of a single position, and is more flexible and convenient. Especially when multiple positions are opened at the same time, the overall leverage ratio can be easily evaluated.
In terms of liquidation, Vertex will charge 25% of the liquidator’s profits and deposit these fees into an insurance fund, which is used to cover the system’s bad debts. According to data from defillama, Vertex transactions have become active since the launch of incentive activities in November last year, with daily transaction volume once reaching 1.6 billion+.
Having said so much about Vertex, what exactly is the synchronized order book liquidity layer Vertex Edge? In fact, it is the V2 version of the cross-chain shared order book just mentioned, focusing on matching orders and liquidity across chains. Developers can build their own front-end applications based on it.
Blitz is the first DEX application built based on Vertex Edge, and can also be called an instance of Edge.
If Edge wants to perform cross-chain liquidity matching, what should we do if the efficiency is reduced? The Edge solution is to use a variety of optimization methods to achieve high TPS, such as modeling the EVM into a tree structure to achieve parallelization. This is also a major upgrade of Edge's Vertex sorter. Co-founder AlwinPeng once tweeted about it Detailed introduction: https://twitter.com/AlwinPeng/status/1737471187465211979
The sequencer's state is simultaneously sharded across multiple supported chains, receiving and cloning inbound orders from each chain; independent orders from one chain are then matched against liquidity from multiple chains. After a successful transaction, Edge automatically hedges and rebalances liquidity on the interchain backend.
Therefore, Edge can also be regarded as an Omni layer, effectively aggregating multi-chain liquidity. In addition to greatly enhancing liquidity, it also increases user experience. There is no need to go back and forth across chains for liquidity, and it can increase long-term stability. Tail asset support.
It is worth mentioning that Edge’s cross-chain liquidity aggregation does not require complex and lengthy asset cross-chains, but only matching. For example, the perpetual contract example in the official documentation:
Alice wants to go long ETH-PERP at price X on Blast's Blitz.
After checking the aggregated orders on the Vertex instance, the sorter (Edge) discovered that the best quote came from John who was going short on Arbitrum. So Edge immediately went short on Blast and long on Arbitrum.
In this way, Edge will continue to establish long and short positions on the local chain over time. It only needs to regularly aggregate the liquidity between chains and perform settlement on the backend. This asynchronous processing is also one of the reasons for its high efficiency.
In addition, to achieve this smooth aggregation of multi-chain liquidity requires consistent pricing in both funding rates and asset rates, so Edge adopts a unified funding rate and a unified money market interest rate.
In short, liquidity and efficiency are both DEX trading experiences that users attach great importance to, and Edge solves them in one fell swoop.
The Blitz experience is very similar to Vertex and is on Vertex Edge, so Blitz users can immediately take advantage of Vertex liquidity on Arbitrum. Currently, Blitz has also announced liquidity integration plans with multiple leading DeFi projects: Juice Finance will integrate with Blitz to provide a leveraged liquidity vault with a customized Elixir pool to increase the rate of return on Blitz order book pairs; Range Protocol also To integrate with Blitz, bringing perpetual vaults and automated liquidity strategies to it.
With the launch of Blast, Blitz's independent points plan will be announced soon, so you can pay attention to it. In addition, you can complete the tasks on Galxe, after all, the official recommendation also mentioned it.