Vest Exchange

Why use Vest Exchange?

Despite the prevalence of perpetual futures markets, there are many issues yet to be addresed, including
  1. 1.
    High barriers for market listing: Current exchanges are reluctant to list long-tail markets because their mechanisms cannot adapt to extreme market conditions. As a result, the same markets get listed repeatedly in decentralized exchanges (DEXs) with no new exposure to long-tail assets.
  2. 2.
    Lack of risk management: In 2022 alone, DeFi saw millions of dollars lost and multiple protocols shut down due to market manipulation and oracle attacks.
  3. 3.
    Unclear risk/returns for liquidity providers (LPs): LPs are exposed to many types of risk including insolvency and adverse selection. Exchanges attempt to compensate by imposing high trading fees.
Vest Exchange solves these pain points through the use of risk-adjusted automated market maker (AMM).