VERTEX

Vertex Protocol

In 2022, the cryptocurrency market faced significant challenges due to centralization risks, leading to insolvencies and misaligned incentives between custodians and users.

Decentralized exchanges (DEXs) offer users control and autonomy, eliminating the need for trust in third parties. However, DEXs still encounter barriers to wider adoption compared to centralized exchanges (CEXs), which offer more features and better liquidity.

Despite these challenges, Vertex aims to bridge the gap between CEXs and DEXs by providing the performance and features of CEXs while preserving the benefits of self-custody and decentralization.

Vertex, is a decentralized exchange (DEX) protocol operating on Arbitrum ($ARB).

What does Vertex offer?

Vertex provides a comprehensive suite of three core products: buying and selling cryptocurrencies directly (spot trading), trading contracts that don't expire (perpetuals), and a way to earn interest on your crypto holdings (money market).

This integration within a single platform empowers users to seamlessly trade their preferred assets, engage in price speculation, and earn interest without the need to switch between different DeFi applications.

Spot Markets: In Vertex's Spot Markets, users can buy and sell crypto assets for immediate delivery and payment. Similar to a traditional exchange, Spot Markets operate 24/7, allowing users to trade their favorite assets at any time. Notably, users always maintain custody of their spot assets on-chain, ensuring maximum control and security.

Perpetual Markets: Perpetual Markets introduce an intriguing twist to Vertex's offerings. These markets feature perpetual futures contracts that enable users to speculate on the price movements of crypto assets without actually owning them. With leverage of up to 10X, users can amplify their exposure or hedge their risk effectively.

Money Market: Vertex's Money Market facilitates decentralized borrowing and lending activities. Users have the opportunity to earn interest on their idle assets or borrow against their portfolio margin in a secure and convenient manner. This money market is seamlessly integrated into the DEX, ensuring a smooth and reliable financial environment for all users.

FEATURES

What are the benefits of using Vertex?

• You have full control over your assets, meaning you don't need to rely on a company to hold your cryptocurrencies for you (non-custodial).

• Your trading account is cross-margined, which means you can use your entire portfolio as collateral for trades, making trading more efficient and reducing risk.

• Vertex is designed to be fast and easy to use, with a simple interface similar to popular trading apps.

• You can earn interest on your crypto holdings and borrow assets if you need them, all within the same platform.

You don't have to sacrifice control over your assets for the sake of performance, as Vertex offers both speed and security.

TOKENOMICS

Tokenomics

VRTX serves as the native utility token within the Vertex ecosystem, rewarding long-term engagement and support. Users who stake VRTX, promote the protocol, utilize Vertex, or refer others to the platform can earn rewards in VRTX tokens.

Vertex Protocol Token Distribution Chart

REVENUE

Revenue

Vertex Protocol generates revenue primarily through transaction fees incurred by users when they trade on the platform. These transaction fees are charged for various activities such as spot trading, perpetual contracts, and borrowing/lending within the money market. Additionally, Vertex may generate revenue through other avenues such as providing premium services, offering liquidity incentives, or participating in revenue-sharing arrangements with partners.

PRICE PREDICTION

Price analysis

Currently Vertex Is on a retracement. It is down approximately 46% from its all time high (ATH).

Daily action

The chart is hinting at a potential double bottom reversal pattern.

This is supported by several factors:

• Price retracement: The price has pulled back to a key zone between 61.8% and 78.6% of the previous move (Fibonacci retracement levels). This is a common area for price reversals.

• Point of Control (POC) test: The price is currently testing a level where there was the highest trading volume in the recent past (represented by the horizontal red line on the chart). This suggests strong support at this price point.

• Bifurcation algorithm: Represented by the pink line is also suggesting a possible reversal around this price level.

In simpler terms, the price has fallen back to a historically attractive buying zone, where there was previously strong buying pressure.

Momentum Indicators

VRTX's momentum suggests a potential weakening of the downtrend.

This is indicated by the formation of a "W" pattern on the Relative Strength Index (RSI). The RSI is a momentum indicator that helps identify overbought and oversold conditions.

When the RSI forms a "W" pattern during a downtrend, it can suggest that the selling pressure is starting to ease and a potential reversal might be on the horizon.

In addition, to this the Moving Average Convergence Divergence (MACD) is indicating potential divergence emerging. That is, the sell pressure is waning and a possible reversal is approaching.

Further, the Williams %R indicator for VRTX is currently embedded in the oversold region, which adds to the evidence for a potential reversal.

The Williams %R is a momentum indicator that helps identify overbought and oversold conditions.

When the Williams %R is embedded in oversold zones (typically below -80), it suggests that the recent price plunge may be losing momentum and a sharp reversal could be imminent.

This adds confluence to the signal from the RSI's "W" pattern as well as the MACD potential divergence, suggesting a potential weakening of the downtrend.

Optimal Entry and size allocation

This section explores how an investor might approach allocating a hypothetical portfolio to VRTX.

An appropriate allocation for new crypto protocols is defendant on the level of experience of the investor.

For newer investors an allocation of approximately 2% of their portfolio is optimal whilst a seasoned investor might allocate up to 5%.

As we are currently in a market retracement the concept of "averaging in" is the wisest approach.

Below is where we believed seasoned crypto whales are entering VRTX.

It is wise to follow trading strategies of these whales.