Vertex is a decentralized exchange on Arbitrum offering multiple functionalities including spot trading, perpetual contracts, and money markets, with trading speeds comparable to centralized exchanges. Its vertically integrated architecture and high-speed execution combine unique features such as universal cross-margining, making it an appealing decentralized exchange for both retail and institutional investors.

As a result, Vertex combines the performance and functionality of centralized exchanges with on-chain transparency and user self-custody, positioning itself to compete with both decentralized and centralized platforms.

Similar to top-tier centralized exchanges, Vertex offers a vertically integrated suite of core crypto trading products: spot, perpetuals, lending, and more. This vertical integration enables them to implement advanced features like universal cross-margining—a capability even Binance lacks.

But Vertex doesn't stop there; a key issue in DeFi is slow speed, making time-sensitive trading nearly impossible, which is another reason institutions and large traders still rely on centralized exchanges. To solve this speed challenge, Vertex built an off-chain order book within its Edge sequencer that operates in parallel with an on-chain AMM, achieving trade execution times under 30 milliseconds—competitive with the leading exchanges in the crypto industry.

The Edge sequencer automatically selects the best price between the order book and the AMM, with the AMM effectively acting as another market maker. The order book not only delivers centralized-exchange-level execution speed and optimal pricing but also addresses another major DEX problem: price impact.

The AMM also allows Vertex to list low-liquidity assets that might be difficult to support using an order book alone.

TechFlow Insights

Researches

Project Updates