Trading Rewards - Detailed Mechanism
Earn VRTX by trading on Vertex.
Vertex’s rewards program incentivizes users via the VRTX token to perform various actions within the Vertex app. VRTX rewards are available to anyone interacting with the protocol based on several qualifying conditions and parameters iterated in this section.
Known as the Vertex Trading Incentive Program (VTIP), rewards in the VRTX token are allocated to users pro-rata relative to the total pool size of VRTX tokens earmarked for the rewards program.
Trade more, earn more VRTX.
Tokens from the VTIP are expected to be distributed and claimable within six months of the Vertex mainnet launch to support decentralized governance by participants who have contributed the most to Vertex’s ecosystem development. The 6-month period will coincide with the scheduled launch of the Vertex DAO and its VRTX token-based governance model.
VTIP is designed to align long-term incentives between users and the future growth of the Vertex protocol by rewarding users for their activity with tokens conveying ownership over a percentage of the protocol’s revenue.
The VRTX token rewards contain the VRTX tokens earmarked for the Ongoing Incentives and Initial Token Phase portions of the VRTX token supply distribution, reflecting the following percentage allocations of the 1 billion total VRTX tokens.
- Ongoing Incentives = 37.0%
- Initial Token Phase = 9.0%
- Total VRTX tokens for VTIP = 46%
VRTX Token Supply Distribution
It’s important to clarify that VTIP rewards will be separated into two phases:
- 1.Initial Token Phase
- 2.Token Emissions Phase
Both phases are enumerated in detail in the sections below.
Please refer to the Vertex Terms of Service and the disclaimer at the bottom of this page for details concerning the explicit ban of wash trading on Vertex, including the resulting consequences for violating the terms relevant to the Trading Rewards.
The first phase of VTIP will be the Initial Token Phase, comprising 9.0% of the total VRTX supply. The initial token phase will go live commensurate with the launch of the public mainnet Vertex application.
The initial token phase is primarily a trading incentive program with the principal objectives:
- Incentivize traders to use various aspects of the Vertex application.
- Augment market liquidity on Vertex.
- Offer users an avenue to share in protocol revenue.
The 9.0% of the VRTX supply in the initial token phase will consist of a pool of VRTX tokens, accruable per user pro-rata every epoch.
The pool is known as the Asset Reward Pool (ARP), and it functions dynamically to determine the VRTX incentive distribution across non-core assets, as displayed in the calculations below.
Asset Reward Pool (ARP) Calculations
Further parameters defining the initial token phase and ARP include:
- 1 Epoch = 28 Days
- Total VRTX Tokens in Pool = 90,000,000
- Total Epochs = 6
- VRTX Tokens Average Over 6 Months = 15,000,000
Rewards breakdown per market (subject to change following new listings):
The initial token phase and later token emissions phase separate reward functions into different categories of users across Vertex’s core products. For more details on user types on Vertex, please refer to the fees section covering the subject here.
These user types include:
- 1.Makers/Liquidity Providers (LPs)
The VRTX token emissions split and distribution per user category are displayed in the table below.
VRTX token emissions, splits, and weighting per user category.
Maker/Taker Trading Fee Structure
Maker Program Rebates Weighting
The minimum depth and maximum spreads per market are as follows:
- $25K for stables.
- $5K for core markets (BTC & ETH).
- $2.5K for alt markets (non-BTC & non-ETH).
- 10 bps for stable.
- 20 bps for core markets (BTC & ETH).
- 40 bps for alt markets (non-BTC & non-ETH).
Rewards will be claimable within six months of the Vertex mainnet launch and the Vertex DAO’s token-based governance release. This means that during the Initial Token Phase, accrued VRTX tokens for users are vested over six months until VRTX token governance is enacted.
In the meantime, VRTX trading incentive rewards are trackable on the Rewards Page of the Vertex app, which is described in further detail toward the bottom of this section.
The second part of the VTIP is the Token Emissions Phase, comprising 37.0% of the VRTX token supply earmarked as Ongoing Incentives.
The Token Emissions Phase differs from the Initial Token Phase in three primary ways:
- 1.The Token Emissions Phase does NOT begin until six months after the Vertex mainnet launch, whereas the Initial Token Phase begins immediately upon mainnet launch.
- 2.VRTX tokens accrued via the Token Emissions Phase can be vested/claimed immediately at a 50% discount, with the surrendered amount being burned. Otherwise, tokens will vest continuously over three months.
- 3.VRTX token emissions during the Token Emissions Phase are ongoing for 6+ years until all 37.0% of the Ongoing Emissions allocation is exhausted.
The Ongoing Incentives represent the protocol’s emissions as part of the Vertex Trading Rewards program (i.e., VTIP). The emissions are capped at a maximum monthly value of $10M USD, with any remaining tokens to be burned – determined according to the average price over the past month.
VRTX Ongoing Incentives emissions will taper throughout the monthly emissions schedule above.
Display of the emissions and vesting model for the Ongoing Incentives allocation of the Token Emissions Phase.
Token Emissions Split & Distribution Table
The VRTX Token Emissions Phase is an ongoing trading incentives program utilizing the same Asset Reward Pool (ARP) function and Fee Structure, Rebates, and Maker/LP Weighting described above in the Initial Token Phase.
The ARP calculations are displayed again below for context.
Asset Reward Pool (ARP) Calculations
The ARP calculates the reward allocations for non-core markets (i.e., non-BTC-USDC and ETH-USDC markets). It determines how much of the epoch’s rewards are allocated for each asset.
Until markets beyond BTC and ETH are supported on Vertex, the ARP’s scope is limited since the rewards are split equally across the two markets.
Parameters defining the Token Emissions Phase and ARP include:
- 1 Epoch = 28 Days
- Total VRTX Tokens in Pool = 370,000,000
- Total Epochs = 72+
- VRTX Tokens Available Per Epoch = Minimum of 5,138,888
More details regarding the initiation of VRTX token-based DAO governance will be released following the Vertex mainnet. Please stay tuned to Vertex’s social media and community channels for relevant updates.
The Rewards Page on the Vertex app contains all of the relevant information for users on their current VRTX reward distributions from the VTIP. The Rewards Page will be available during the Vertex public mainnet launch.
During the first epoch of the Initial Token Phase, users’ VRTX rewards will still follow the ARP calculations above and will be added to the Rewards Page dashboard once live on the application.
The Rewards Page will be the hub for users to track trading incentive rewards for the Ongoing Emissions for the remainder of the VRTX token emissions schedule. After the VRTX token goes live, users can claim their accrued VRTX from their trading activity directly from the Rewards Page.
Rewards Page figures displayed update roughly every 5 minutes.
Disclaimer – Vertex and its affiliates intend to offer a token rewards program to distribute governance tokens to a decentralized community in connection with the anticipated launch of the Vertex DAO. Terms and conditions of the token rewards program are subject to change. There can be no assurance that the token distribution program or the DAO will be launched or that rewards will be available related to participation on Vertex Protocol or otherwise. Vertex will consider legal, regulatory, and any other matters deemed relevant in connection with its decision to launch a token distribution program and a DAO.
Attempts to wash trade on Vertex in any capacity, whether to manipulate the VRTX Trading Rewards or for any other reason, will be dealt with swiftly and appropriately.
Wash trading typically involves two accounts trading directly against each other to induce artificial market activity with specific intent. The trading usually comprises the vast majority of their volume and is trivial to detect. It is difficult to accidentally wash trade, and suspected cases of wash trading will be flagged rapidly as evidence emerges.
Addresses involved in wash trading on Vertex will be excluded from all Trading Rewards epochs. Complicit accounts will also have their addresses published as part of an ongoing list of excluded wallets from the Vertex Trading Rewards. Further actions deemed necessary may also be taken against wash trading accounts based on the circumstances.
Any impact across relevant exchange data (e.g., volume, trading fees, etc.) from wash trading on the Trading Rewards for a given epoch will be vacated, meaning regular users' VRTX rewards will NOT be diluted by wash trading activity.