VEAX: THE NEXT-GENERATION DEX FUSING DEFI WITH TRADITIONAL FINANCE
Built on NEAR and developed by Tacans Labs, Veax has its eyes set on becoming one of the key players to revolutionise the DeFi landscape.
As the collapse of centralised finance (CeFi) giants continues to make headlines, demand for trustlessness in DeFi is growing rapidly. Enter Veax, the latest promising decentralised exchange (DEX) to launch on NEAR Protocol.
Veax has already raised $1.2M in pre-seed funding, which will be used to develop its platform and bring its DEX to market. This funding, together with the expertise of Tacans Labs and its backers, places Veax in the prime position to deliver on its vision to disrupt the current DeFi space.
Veax’s architecture has been designed to be highly efficient and user-friendly, as the platform provides an extensive suite of traditional finance functionalities within a decentralised infrastructure. The DEX offers adaptable liquidity pools, a unique fee structure, and concentrated liquidity to minimize impermanent loss and provide the best prices for traders.
Want to stay ahead of the curve in DeFi? Here is why Veax should be on your radar:
TL;DR:
- Backed by Proximity Labs, Veax comes at a critical time for Web3. The DeFi project aims to establish itself as crucial infrastructure on NEAR, and is poised to become one of the leading DEXs in the NEAR ecosystem.
- Veax’s cutting-edge approach to fee structure allows liquidity providers (LPs) and traders to optimise capital deployment. The DEX offers adaptable liquidity pools, concentrated liquidity, and multiple fee levels, which minimise impermanent loss and provides users with the best prices.
- You’re now able to try out Veax on testnet! Veax’s newly launched Points Program features a variety of ways users can become eligible to receive rewards in $VEAX tokens from the 100,000 USD prize pool that the team has set aside for the community.
Veax DEX Architecture
From the ground up, the architecture underlying Veax is designed to offer a highly efficient and user-friendly experience for traders. The DEX’s unique approach to fee structure allows liquidity providers to optimise capital deployment and maximise returns in the long-run. In essence, Veax’s cutting-edge adaptable liquidity pools offer users greater flexibility and control over assets, allowing both investors and traders to adjust their liquidity levels based on market conditions.
Veax has successfully implemented concentrated liquidity and multiple fee levels, which aim to minimise the impact of impermanent loss and provide the best prices for swaps. Concentrated liquidity is an automated market maker model that allocates liquidity within a custom price range, allowing LPs to earn more fees for fewer tokens deposited. Traders can experience less slippage due to liquidity differences, and trade execution is faster since a large amount of capital is provided by fewer LPs.
That said, concentrated liquidity increases potential impermanent loss, despite making the whole process more capital-efficient. In order to counteract this, Veax has adopted multiple fee levels, which allows LPs to choose the fairest fee level. This approach works for both traders and LPs because traders get the best swap conditions, and LPs can choose the fee level that is the fairest.
It is worth noting that Veax’s concentrated liquidity model is essentially similar to Uniswap v3’s approach. However, Uniswap doesn’t offer their LPs multiple fee levels. Instead, what Uniswap does is provide multiple pools per liquidity pair with different fee levels. Veax actually offers multiple fee levels, and is therefore considered to be a lot more advantageous to LPs, as the platform is able to guarantee the best possible swap price, regardless of the situation.
Tokenomics
The VEAX token lies at the heart of the Veax platform and is integral to its functioning. It offers a range of benefits to users, including governance and fee reduction.
In terms of governance, VEAX token holders will be able to vote on important platform decisions and proposals via the Veax DAO. This will enable users to have a say in the development of the platform and ensure that it remains aligned with their interests.
VEAX token holders will also benefit from fee reductions when using the Veax platform. Liquidity providers who stake VEAX tokens will receive a reduced fee rate, as well as additional rewards from the distribution of transaction fees. Liquidity providers are able to set the rate at the point of contribution, and when users perform swaps, the fee is redistributed. This is designed to incentivize liquidity providers to contribute to the platform and to ensure that the liquidity pools remain deep and stable.
The remaining fees are split between stakers, the lock wallet, and the treasury, with expected splits of 45/45/10 respectively. Veax also reserves the right to burn lock wallet tokens if necessary to maintain token price stability. This will be controlled by the Veax DAO. You can find out more on the tokenomics by reading the Veax litepaper.
Backed by Key Industry Players
Veax has garnered support from a number of prominent Web3 investors, demonstrating the confidence and trust in the project. Circle Ventures, Proximity Labs, Outlier Ventures, Tacans Labs, Qredo, Skynet Trading, Seier Capital, and Widjaja Family have all commited to backing Veax. Their support demonstrates a strong confidence in Veax’s approach to solving some of the many bottlenecks that have plagued the DeFi landscape.
“The need for robust decentralised exchanges has never been more apparent. VEAX aims to deliver a unique solution to the liquidity problem, and its launch will establish itself and NEAR as crucial DeFi infrastructure at a critical time.”
- Kendall Cole, Director of Proximity Labs
In addition to the backing of these key industry players, Veax also benefits from the guidance and expertise of industry veterans serving on its advisory board. For instance, the Founder of Saxo Bank and Concordium Blockchain, ex-COO of Skype, and Professors in Blockchain Research and Computer Science, all sit on the Veax advisory board. Their insights help to shape and steer the development of the Veax platform, and with the support of such a diverse field of expertise, Veax is well-positioned to deliver on its mission.
Veax Points Program
At the time of publication, Veax’s generous points program is still ongoing. A total of 100,000 USD has been set aside in native tokens to reward the NEAR community for using the Veax testnet.
In the points program, rewards are split equally between two categories—the Builder Pool and the First Mover Pool. Each pool features a variety of ways to earn rewards that will eventually earn participants $VEAX tokens from the fund set aside. For instance, a recent quest in the Builder Pool has allowed users to earn 200 Veax Points each day for inviting a friend to participate in the Veax Points program. Be sure to check-out the Veax testnet to secure yourself a portion of the 100,000 USD prize pool!
The Road Ahead
Veax’s potential impact on the DeFi scene cannot be overstated. Its highly advanced and efficient architecture, low-fee structure, and adaptable liquidity pools make it stand out from all other DEXs, not only on NEAR, but also in the wider Web3 space.
We eagerly anticipate the upcoming Veax mainnet launch, which will mark a significant milestone in the platform’s development, and look forward to witnessing the impact that Veax will have on the DeFi landscape in the months and years to come.
After all, Veax’s groundbreaking approach to DeFi may be the move that finally pushes NEAR to outshine competition and rise as the next dominant Layer-1 blockchain for all things DeFi-related.
About Veax
Veax is an advanced single-sided liquidity management DEX natively on the NEAR blockchain with pioneering TradFi-empowered features. Invested by Circle Ventures, Tacans Labs, and various capitals, the project’s core members incl. award-winning entrepreneur, Mathias Lundoe Nielsen, and industry veterans, James Davies, Ivan Ivaschenko, and Marie Tatibouet.
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Veax: The Next-Generation DEX Fusing DeFi with Traditional Finance was originally published in NEAR Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.