Vexchange

The live Vexchange price today is $1,66 USD with a 24-hour trading volume of not available. We update our VEX to USD price in real-time. Vexchange has no change in the last 24 hours. The current CoinMarketCap ranking is #9892, with a live market cap of not available. The circulating supply is not available and a max. supply of 100 000 000 VEX coins.

If you would like to know where to buy Vexchange, the top cryptocurrency exchange for trading in Vexchange stock is currently Vexchange. You can find others listed on our crypto exchanges page.

How Vexchange works

Vexchange is an automated liquidity protocol powered by a constant product formula and implemented in a system of non-upgradeable smart contracts on the VeChain blockchain. It obviates the need for trusted intermediaries, prioritizing decentralization, censorship resistance, and security. Vexchange is open-source software licensed under the GPL.

Each Vexchange smart contract, or pair, manages a liquidity pool made up of reserves of two VIP-180 tokens.

Anyone can become a liquidity provider (LP) for a pool by depositing an equivalent value of each underlying token in return for pool tokens. These tokens track pro-rata LP shares of the total reserves, and can be redeemed for the underlying assets at any time.

Pairs act as automated market makers, standing ready to accept one token for the other as long as the “constant product” formula is preserved. This formula, most simply expressed as , states that trades must not change the product () of a pair’s reserve balances ( and ). Because remains unchanged from the reference frame of a trade, it is often referred to as the invariant. This formula has the desirable property that larger trades (relative to reserves) execute at exponentially worse rates than smaller ones.x * y = kkxyk

In practice, Vexchange applies a 0.30% fee to trades, which is added to reserves. As a result, each trade actually increases. This functions as a payout to LPs, which is realized when they burn their pool tokens to withdraw their portion of total reserves. In the future, this fee may be reduced to 0.25%, with the remaining 0.05% withheld as a protocol-wide charge.

Because the relative price of the two pair assets can only be changed through trading, divergences between the Vexchange price and external prices create arbitrage opportunities. This mechanism ensures that Vexchange prices always trend toward the market-clearing price.

How Vexchange works

Vexchange is an automated liquidity protocol powered by a constant product formula and implemented in a system of non-upgradeable smart contracts on the VeChain blockchain. It obviates the need for trusted intermediaries, prioritizing decentralization, censorship resistance, and security. Vexchange is open-source software licensed under the GPL.

Each Vexchange smart contract, or pair, manages a liquidity pool made up of reserves of two VIP-180 tokens.

Anyone can become a liquidity provider (LP) for a pool by depositing an equivalent value of each underlying token in return for pool tokens. These tokens track pro-rata LP shares of the total reserves, and can be redeemed for the underlying assets at any time.

Pairs act as automated market makers, standing ready to accept one token for the other as long as the “constant product” formula is preserved. This formula, most simply expressed as , states that trades must not change the product () of a pair’s reserve balances ( and ). Because remains unchanged from the reference frame of a trade, it is often referred to as the invariant. This formula has the desirable property that larger trades (relative to reserves) execute at exponentially worse rates than smaller ones.x * y = kkxyk

In practice, Vexchange applies a 0.30% fee to trades, which is added to reserves. As a result, each trade actually increases. This functions as a payout to LPs, which is realized when they burn their pool tokens to withdraw their portion of total reserves. In the future, this fee may be reduced to 0.25%, with the remaining 0.05% withheld as a protocol-wide charge.

Because the relative price of the two pair assets can only be changed through trading, divergences between the Vexchange price and external prices create arbitrage opportunities. This mechanism ensures that Vexchange prices always trend toward the market-clearing price.