Vertex Protocol Overview

1. Features

1. Hybrid CLOB/AMM Design:

   • Vertex combines a Central Limit Order Book (CLOB) and Automated Market Maker (AMM) design.
   • Most trades are matched via an off-chain sequencer, with a typical matching time of 10-30 milliseconds, providing a latency similar to centralized exchanges (CEXs).
   • Matched trades are passed to the on-chain risk engine along with deposit/withdrawal instructions, batching over 200 orders into a single transaction.
     • This approach makes trading cheaper, faster, and resistant to Miner Extractable Value (MEV).
     • Future plans include decentralizing this layer, essentially creating a "Layer 3" solution.
   • The AMM serves as a backup, and all liquidations are processed on-chain.

2. Cross-Portfolio Margin (Default Setting):

   • Margin is shared across all positions, including perpetuals, spot trades, and liquidity pools.
   • Creating liquidation events is challenging, even at 20x leverage, due to robust risk management.
     • Liquidation involves a step-by-step process across different products used for margin.
   • Automatic risk management transfers margin between open positions to maintain required levels.
   • Isolated Margin: Margin is based solely on the liability of an individual position, standard in most DeFi applications.

3. Edge Sequencer:

   • The sequencer matches orders across all chains where a Vertex instance is running.
   • How it Works:
     • If a long position is taken on one chain, it is matched with a short position on another chain. Edge pairs these trades and takes the opposite side of the matched orders.
     • Liquidity between chains is periodically aggregated and settled on the backend.

4. Integrated Money Market:

   • Earn yield on all deposits instantly, which ties into Vertex's liquidation process. In extreme cases, losses may be socialized across the platform.

2. Curation

Curation Levels

1. Core Tables: Include on-chain data essential to Vertex trading.
2. Curated Tables: Provide analytical and aggregate data, such as funding rates and market depth. Combines both on-chain data with API data.

Specific Curation for Blitz on Blast

Data Type	Description
EZ Core
Perp Trades	Includes USD amounts, wallet data, and order types.
Spot Trades	Details on spot market trades.
Products	Ensures all trading symbols are up-to-date via API.
Liquidations	Captures all liquidation events, with some binary decoding.
Clearinghouse	Tracks collateral deposits and withdrawals.
Curated Vertex
Market Stats	Combines on-chain data with API metrics like funding rates, trader counts, and open interest.
Market Depth	Displays the full order book, showing liquidity at each price level.
Staking Actions	Tracks VRTX staking, withdrawals, and rewards.
Account Aggregation	Provides aggregated metrics at the subaccount level.
Edge Specific	Pairs Edge trades with opposite trades to capture net trading activity.

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