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Why Arbitrum, not others?
Vaultka has been a supporter of Arbitrum since day one because of its development environment, investment readiness, innovation, market demand and end-user experience. These pillars collectively lay a strong foundation for various Perpetual Decentralized Exchanges (Perp DEX) to thrive upon this cutting-edge Layer-2 solution.
At Vaultka, our commitment to Arbitrum is rooted in our vision for a thriving decentralized ecosystem. We specialize in crafting leverage and delta neutral strategies for Perp DEX LPs, and Arbitrum provides an ideal environment for us to realize this mission. Our dedication to Arbitrum extends beyond mere support; we aim to unite all Perp DEX platforms on the Arbitrum network. By forging strong connections and collaborations within this ecosystem, we believe in creating a synergistic environment that fosters innovation, liquidity, and, ultimately, prosperity. We see Arbitrum as a pivotal piece in the puzzle, offering the scalability, efficiency, and user-friendliness necessary to bring decentralized finance to new heights, and we're excited to be part of this journey.
GMX is definitely the first and most popular Perpetual DEX on Arbitrum, offering spot swaps and futures trading with up to 50x leverage in BTC, ETH, and other popular cryptocurrencies directly from users’ crypto wallets. Transactions take place through its native multi-asset pool, GLP, which generates fees for liquidity providers.
Other Perpetual DEXs have followed in GMX’s footsteps, each offering unique features and benefits. Some prioritize market neutrality for LPs, while others expand their trading market to a wider coverage, provide high leverage to aggressive traders, or develop specific operational and rebalancing mechanisms to protect LPs’ capital and interests. Some are working on One-Click Trading to avoid multiple confirmations in wallets and streamline the trading experience, making it more akin to trading on a centralized exchange.
We see new technology and innovative ideas emerging every week on Arbitrum, with a development environment that attracts top crypto projects and teams to join the space. This creates a healthy competitive environment that drives innovation and sparks new ideas.
The revelation of unethical practices in FTX’s bankruptcy filing has caused investors to lose trust in centralized entities, resulting in historic high outflows of 106,000 BTC per month. As a result, many investors are turning to self-custody and decentralized finance platforms.
Perpetual trading is a significant market in crypto, with a median daily volume of $17.8b in 2020, $132.0b in 2021, and $101.9b in 2022. The Perpetual markets are consistently trading between 2x to 3.5x the spot volume in 2022.
Perpetual trading is a fundamental element of many investment activities, such as hedging tools for market-neutral crypto funds and on-chain strategies, and a crucial part of the existence of crypto hedge funds and short trading.
Despite the concrete demand for perpetual trade, the volume of TradFi derivatives is still 5000 times that of DeFi derivatives, indicating that there is plenty of potential market demand for decentralized derivatives trading. To meet the growing demand, it is imperative to seek out a place that offers a rich ecosystem of Perp DEX options, cutting-edge innovation, and powerful tools, and this is nowhere but Arbitrum.