Vest Exchange, which in actuality, happens to be a decentralized perpetual futures exchange on Arbitrum. This very entity provides all of its connected users the opportunity to make propositions and simultaneously, in the carrying out of trading of just about any and every asset they may possess.
In its turn, and much to its credit, it has successfully obtained seed funding from several prime investors. Just some of them are entities such as Jane Street, QCP Capital, and Ascendex.
Along with that, there also happens to be Big Brain Holdings, Builder Capital, Infinity Ventures Crypto, and Robert Chen (Ottersec). The contributions are also from Pear VC, Cogitent, Moonshot Research, Fugazi Labs, and others.
Despite the fact that perceptual features happen to be the most sought-after crypto primitive, exchanges that happen to be present in the current moment in time seem to lack the solutions for certain issues. As in the case of high barriers for market listings, the present exchanges that happen to exist have hesitations about listing long-tail markets.
The reason for this is that the mechanisms they adopt are not adjustable to severe market conditions. The resultant factor is that those very markets happen to get listed time after time in DEXs, obtaining no fresh connection with long-tail assets.
There also seems to be a big lacuna where risk management is concerned. It is only in the year 2022 that DeFi witnessed a massive amount of money that was apparently lost, along with the unfortunate fact, that a variety of protocols, too, came under closure because of market mismanagement coupled with oracle attacks.
A case of unclear risk and returns for liquidity providers (LPs) are also on the cards. LPs happen to face various sorts of risks, such as insolvency, along with adverse selection. The way in which existing exchanges try and overcome this issue is by charging exorbitant trading fees.
Where Vest Exchange is concerned, it attempts to overcome these hurdles with the help of a technologically advanced risk engine structured by academic literature, along with new-age market-making strategies. They make a combination of logically-based risk measures, along with the micro-framework of perpetual future markets, to open the doors for fresh illiquid markets quicker than in the case of any other centralized or, for that matter, decentralized exchange.