Vega, a blockchain project that is building a decentralized protocol to run infrastructure for programmable financial markets, today announced its Markets and Liquidity Programme, which will grant liquidity providers exclusive access to the Vega Protocol ahead of its public Testnet launch.
Following the launch of its private testnet, Vega has designed the Markets and Liquidity Programme for organizations to evaluate Vega Protocol commercially and technically. The programme joins stakeholders in a collaborative effort to ensure a successful mainnet launch – one that meets the needs of traders, market makers, and the other participants in the ecosystem.
“We anticipate market makers could earn 10 to 20 times higher returns by deploying collateral on Vega Protocol as opposed to traditional exchanges,” said Vega co-founder Tamlyn Rudolph. “We have disintermediated the typical expenses incurred by exchanges, with the preserved profit largely redirected to the market makers on Vega. They are rewarded for the high value activity of incubating and growing healthy markets and can expect to receive 50 to 70 percent of fee revenue from trading on Vega.”
Vega aims to close the gap between niche crypto speculating and professional market making with its protocol for commercially attractive, professional quality derivatives trading that makes the process of market creation simple and open to all participants. It sees the Markets and Liquidity Programme as a critical first step.
Founding members of the Liquidity and Market Marker Programme include:
- FRACTAL (Los Angeles)
- E-Frontier (San Francisco & Tel Aviv)
- flovtec (Zurich)
- QCP (Singapore)
- Hummingbot (San Francisco)
- Proxima (Sydney)
- Luxor (New York)
“We are excited to break ground on this initiative with Vega,” said Carson Cook, FRACTAL founder. “Decentralized exchanges offer a new and innovative landscape, and Vega’s focus on professional traders and excellent built-in incentives for market makers make it one of the most interesting new protocols out there.”
What are the benefits of joining Vega’s Markets and Liquidity Programme?
- Access to Vegaʼs protocol design, technical teams and modelling tools to enable the development of strategies and business models
- Early onboarding to Vegaʼs testnet and access to engineering team to support with integration
- Input into features and roadmap discussions
“Market infrastructure benefits from fantastic economies of scale, which currently help to line the pockets of exchanges and other rent-seekers while traders are charged excessively for services that should be cheap or free,” said Barney Mannerings, Vega co-founder. “Liquidity providers, particularly, see little or no reward when they take the risk to nurture and support a new market. Vega is different. We recognise the essential value provided by market makers and innovators, so the protocol strongly rewards the value they add with a share of each market’s overall revenue. The high level of interest we’ve already received for this programme and the potential to be part of Vega at launch is a testament to the attractiveness of this new model, with members considering creating markets for equity futures, single stock options, crypto options, and mining and hash rate derivatives, among others.”
Participants in the Markets and Liquidity Programme are under no obligation or commitment to market making. However, those who most contribute early to the network stand to most benefit.
Interested parties should contact Tamlyn Rudolph at Vega on email@example.com.
ABOUT THE PROGRAMME
The Markets and Liquidity Programme aims to provide the necessary information for market and trading professionals to evaluate Vega commercially and technically, and collaborate to refine the protocol and progress towards launch.
Phase 1 (May – July):
- Onboarding to Vega Testnet and education on the protocol and mechanism design
- Opportunity for dialogue and collaboration with Vega and other participants around risk mitigation and incentives in the protocol
Phase 2 (Aug – Oct):
- Exploration with Vega engineering and quant team of market ideas and how to create successful markets at launch
- Access to tools and workshops for detailed market, revenue and risk analysis of the protocol and launch market ideas
Phase 3 (Nov – Dec):
- Collaboration on specific market ideas
- Information sharing and access to Vega team and validators ahead of launch
Vega is building tools that guarantee the freedom to trade and make capital markets available to everyone. This vision will be realized through a protocol for creating and trading derivatives on a fully decentralized network. Traders can use Vega Protocol pseudonymously and be rewarded by other participants for creating new products and providing liquidity.
The Vega team held a seed round fundraising, led by Pantera Capital, where the team raised $5 million to support project development.
Follow along on Twitter to see the latest updates, including news and details about the concepts underpinning Vega. This communication is issued by Vega Holdings Limited.