Content on this page was provided by the Vega team
This information on this page was last updated June 2021. For more up-to-date information, visit vega.xyz
Content on this page was provided by the Vega team
Vega is a proof-of-stake blockchain, built on top of Tendermint, which makes it possible to trade derivatives on a decentralised network with comparable experience to centralised exchanges.
By using a blockchain optimised for capital efficient trading alongside Ethereum and other general purpose chains, Vega is able to fairly process and manage risk on thousands of trades per second settled in assets like Ether, BTC, and standard ERC20 tokens. Fees are only charged when trades are executed, and it is free to submit, cancel and amend limit orders.
Vega’s mission is to create software that gives everyone fair access to high quality derivatives markets, regardless of who they are or where they are from. We believe that nobody should be able to cheat or gain an unfair advantage as a result of wealth, status, or technical capabilities. We design Vega so that all participants benefit equally from competitive fees, and rewards are proportionate to the value added.
Sale participants may choose to purchase VEGA tokens under the three different options below. Options may be combined. The allocations available will be as follows:
| Option 1 | Option 2 | Option 3 | |
| Sale Dates | June 2, 2021 00:00 UTC |
June 2, 2021 17:00 UTC |
June 3, 2021 00:00 UTC |
| Lockup & Release | 12-month lock up with a 12-month release period thereafter | 6-month lock up with a 6-month release period thereafter | Freely trading after a 90-day lock up |
| Purchase Limits | $100 - $1,000 | $100 - $2,500 | $100 - $10,000 |
| % of the Total Supply | 2.5% | 2.5% | 2.5% |
| Num of Tokens | 1,625,000 VEGA | 1,625,000 VEGA | 1,625,000 VEGA |
| Price per Token | $5 | $10 | $15 |
A small number (<100) of long term supporters of Vega have access to a private option at a price of $2. Additionally, up to 3000 community members will receive whitelisted access to option 1 with an increased cap of $2,000. Neither of these options affect the number of tokens available to other participants through the main sale.
Excluded Participants: Residents of the US, Canada, China, and CoinList’s unsupported jurisdictions
Prior to the VEGA token sale, tokens have been allocated to early investors and team members. All of these allocations are subject to lockups, and a small number of early investor tokens begin vesting from four months following the public sale.
VEGA has a fixed supply of 64,999,723 tokens, of which 7.5% will be available in the token sale. The charts below show the projected distribution of VEGA tokens, both in terms of how much is owned by each group, as well as the period over which tokens become vested.
After the token sale the remaining tokens will be used for community incentives to bootstrap the growth of the network, as well as future fundraising.
Note, whitelisted community members will receive tokens from the community allocation
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THE ABILITY TO APPROVE NEW MARKETS Active markets on Vega are determined by token holders through governance voting. Proposals to create, alter, or remove markets can be submitted to the network by anybody in the world. The community of token holders will collectively exercise control over whether proposals are approved or not. Designing safe and secure markets requires careful analysis, as well as collaboration with liquidity providers. Vega gives the power to network stakeholders to ensure the markets they need are prioritised and created. |
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GOVERNANCE OVER THE NETWORK Important network functionality is controlled by governance voting. For example, the number of block confirmations before deposits are credited, or participation thresholds to vote for new markets. Token holders play a crucial role in ensuring the Vega network operates a safe and secure environment for decentralised trading at all times. |
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STAKING VALIDATORS The Vega blockchain implements delegated proof-of-stake to achieve consensus. The network is comprised of validator nodes, which collectively operate markets by running the Vega software. The network is secured through staking, where token holders choose the validators they want to operate the network by delegating tokens to them. Fees are distributed to validators, token holders and liquidity providers as a reward for securing and operating the network. |
August 2018
Prior to raising funds from VCs, a small round of fundraising from family, friends and founders made the launch of Vega possible.
October 2019
$0.36 per VEGA
$5.5M Raised
Vega’s seed round was led by Pantera Capital, with additional backing from KR1, Ripple’s Xpring, Rockaway, Eden Block, and others.
November 2020
$0.77 per VEGA
$5.5M Raised
The most recent round of funding was led by Arrington Capital and Cumberland DRW. It also included investment from Coinbase Ventures.
PAUL VERADITTAKIT
Partner, Pantera Capital
“I’m extremely excited to see the dedication and hard work of this team come to fruition, and I look forward to the launch of the first Vega Mainnet later this year. Vega delivers the capabilities to move significant volumes of derivatives trading on-chain, which is a vital development in the growth of the DeFi ecosystem. I’m proud that Pantera has the privilege of making this possible.”
MICHAEL ARRINGTON
Partner, Arrington Capital
“Vega is to derivatives what Uniswap was to spot markets. It's an entirely new operating system for financial markets, one that empowers anyone to seed open and transparent markets. Vega will transform not just crypto derivatives, but spawn new financial products that were never possible before. I'm incredibly excited to be backing this team.”
DO KWON
Founder and CEO of Terraform Labs
“The interchain future is about to become a lot more expressive with Vega Protocol.”
SIMON KIM
CEO and Managing Partner, Hashed
“We are excited about Vega's purpose built chain that will allow for new level scale and diversity of derivatives trading in DeFi.”
ATOMIC MARGIN CALCULATIONS
The Vega trading engine uses industry standard risk models, which optimise margin requirements for markets based on their expected volatility and open interest. Every time a new block is created the network recalculates margin levels to ensure traders receive the most competitive leverage without compromising the safety of markets.
BUILT-IN LIQUIDITY INCENTIVES
Vega implements a novel liquidity mining mechanism, where liquidity providers (LPs) bid against each other to set the trading fee on each market. This leads to low fees on markets with a lot of competition, as well as sufficiently incentivising liquidity on new markets with lower volume.
LOW LATENCY & HIGH THROUGHPUT
The Vega blockchain is optimised for trading by design. It operates with a block-time of approximately one second, and is capable of processing thousands of transactions per second. There are no fees to create, cancel or modify an order. Instead, traders only pay a fee when their order is matched with a buyer or seller, or to make deposits and withdrawals, for example from the Ethereum bridge smart contract.
PROTECTIVE AUCTIONS & PRICE MONITORING
The Vega network has built in circuit breakers to ensure that trading happens within safe bounds. For parties that are highly leveraged, large price moves may lead to insufficient margin to cover their open positions. The network implements price monitoring, which triggers an auction in the event of spurious price moves to protect market participants from the risk of loss as a result of manipulation or black swan events.
PERMISSIONLESS MARKET CREATION
The Vega network enables users to propose, modify and approve markets for any asset they wish to trade with each other, without seeking permission to do so. By aligning the interests of liquidity providers, traders and token holders, Vega will enable rapid creation of new markets and unlock a wealth of new opportunities on the decentralised web.
PSEUDONYMOUS TRADING & GOVERNANCE
Trading and governance on Vega is performed by pseudonymous users. Traders do not need to know the identity of each other to trade together in a safe environment. Sophisticated incentive mechanisms and strong protocol governance ensure that markets serve the best interests of all traders equally at all times.
RICH USER-FRIENDLY APIS
The network exposes market data and access to trading via modern, user-friendly APIs. Access to markets is available via REST, RPC and GraphQL. Developers can build synchronous interactions using HTTP, or take advantage of streaming via web sockets to build sophisticated real-time applications.
