Vest: v. confer or bestow (power, authority, property, etc.) on someone.
Welcome to Vest
Vest is a decentralized perpetual futures exchange built on zkSync, a zero-knowledge (ZK) rollup built on Ethereum.
Users can trade a wide range of digital assets on Vest while liquidity providers (LPs) can provide capital in the form of USDC to earn yield.
Vest was built on four fundamental beliefs of a proper exchange:
High Capital Efficiency: All trades should be priced optimally for traders and LPs. Liquidity should be utilized to its maximum potential without compromising risk and safety of users.
Fairness: Participants should only be charged / rewarded for what they deserve. Traders should not be charged arbitrary fees and slippage, and LPs should be compensated correctly for the liquidity they provide.
Robustness: Exchange solvency and safety of user funds should be guaranteed at all times.
Trustless: All pricing calculations, risk metrics, and exchange variables should be transparent, verifiable, and easily accessible at all times.
Vest uniquely allows for maximum capital efficiency, a lower cost of trading, a safer LP experience, and more assets when compared to most other perp DEXs. This is due to a quantitative risk engine that prices and accounts for risk as necessary, zkRisk. Transparency is ensured via zkSNARKs that is verifiable and accessible by anyone.
How does Vest work?
Vest is calculates the minimum amount of capital the exchange needs to guarantee solvency. When a trade or price movement increases the risk of insolvency (and therefore the minimum capital needed) the difference in required minimum capital is charged onto the trader in the form of premia or funding rate.
The same process is done for LPs. Vest calculates the minimum amount of capital needed to be given to LPs to set their expected profit and loss (PnL) to be zero. When a trade or price movement reduces LP expected PnL, the difference in capital is charged onto the trader in the form of premia or funding rate. This makes LPs risk-indifferent to trader behavior.
This process is called zkRisk. In the long run, zkRisk will be used to build an entirely composable ecosystem of DeFi products, with all products having comprehensive cross-margin capabilities and risk indifference.
Our end vision is to rebuild all traditional financial products into their trustless counterparts.
More on the Vest Team
We are a lean team of individuals from BlackRock, AQR, Point72, Palantir, Goldman, Robinhood, Amazon, and Meta on a mission to reinvent finance to be trustless and transparent.
Our advisors include computer scientists, cryptographers, successful DeFi founders, and physicists. We are backed by visionary venture capitalists, quantitative trading firms, and global financial institutions who share our vision for a fully democratized financial system.