The network, secured with proof-of-stake, will facilitate fully automated, end-to-end margin trading and execution of complex financial products. Anyone will be able to build decentralized markets using the protocol. Built-in liquidity incentives match traders and market makers across any financial product, to solve the problem of attracting and allocating market-making resources, especially for long-tail markets.
Vega will connect to major blockchains for collateral, which can be in any digital asset including Bitcoin, ERC20 tokens, and stable coins, so participants will be able to choose from a range of collateral options. Any participant will be able to easily create and launch markets, pseudonymously, by using a toolkit of product features and economic primitives from which all cash flows and settlement instructions can be easily specified.
It is Vega’s mission to build tools that guarantee the freedom to trade and make that freedom accessible to anyone on earth. We’re taking aim at the fundamental problems we see with the current centralized financial system, and creating a parallel financial system that fixes those problems. We’re writing rules for rewards and incentives that balance the system, keep it fair, and help it to grow.
This protocol must be open and will eventually be free and open-source software governed by the community so that it can develop and evolve with the needs of its users.