TechFlow Insights
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Better liquidity matching
Unlike typical DEXs that solely adopt the AMM model, Vertex combines two liquidity matching methods—unified centralized limit order book (CLOB) and integrated automated market maker (AMM).
A significant advantage of this hybrid model is that the platform maintains two types of concurrent liquidity: one provided by market makers via API-based order books, and the other supplied by LP funds through smart contracts.
AMM liquidity resides on-chain, while order book liquidity operates off-chain. These two liquidity sources are combined through a sequencer, presenting traders with a unified liquidity pool on the frontend, enabling trade settlement at the best available price. By combining on-chain and off-chain liquidity, trading efficiency is significantly improved.
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Improved capital efficiency:
Vertex has designed a global margin system where all funds (deposits, positions, and investment gains/losses) can be used as margin, including open positions in spot, perpetual contracts, and money markets.
The benefit of this approach is that unrealized profits can be used to offset unrealized losses or serve as margin for existing or new positions, maximizing the utilization of traders' capital.
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Lower fees:
Against the backdrop where on-chain Degen users frequently suffer from slippage, MEV, and network congestion, Vertex leverages Arbitrum L2's batch transactions and Rollup technology, resulting in significantly lower gas costs compared to Ethereum mainnet.
