Some ideas to showcase Vega's true potential

🧠 Ideas for the Protocol, Research, and Markets
1

Hello,

It’s been nice to see some efforts to spur Vega’s growth with the upcoming marketing campaign and trading games. But the more I think about Vega’s current state, we are potentially focusing on the wrong things.

To me the number one advantage Vega has as a derivatives DEX is that it is highly customisable and I don’t think we are leaning heavily enough on this. We continue to throw incentives towards markets that every other perp dex/cex offers and arguably rn Vega’s UX is worse whether that be through onboarding, UI, and liquidity. It’s clearly not working as switching costs are high for genuine users. A user is only likely to migrate or try out a new platform where there is a need that is not currently being fulfilled on their existing exchange.

Vega saw a brief moment of realisation with the launch of its pre-markets/points markets however we were pretty late to that.

So what are some other avenues that allows Vega to leverage its customizability?

One general idea I had was to begin branching out to more diverse collateral perp markets. From what I’ve seen this is largely underexplored and implemented.

For example, while riskier, there are more capital efficient collateral options vs boring USDC or USDT such as sUSDe & sDAI. We also have the likes of wstETH, weETH, and other LRT/LST tokens that offer yield bearing instruments.

With vega’s architecture it’s possible to launch BTC/sUSDe, ETH/sUSDe, SOL/sUSDe, BTC/wstETH, etc. by combining multiple Pyth price feeds. While I’m unsure if quanto perps are possible on Vega an alternative could be to even launch BTC/PEPE markets to provide a use case for memetokens however I think Quanto perps is better in this case.

I think it could be really good for Vega to build out a suite of wstETH/weETH/sUSDe markets in collaboration with these protocols - it would be great marketing, it would capture a specific userbase, and we could even onboard ETHFI or ENA as an asset on the network to run ENA + VEGA incentives for these markets. I guess the hardest part about the above is that we really have no one who can step in and do this for Vega given the team doesn’t wan’t to participate in marketing efforts.

My obvious concerns about the above is that we would also need LPs to be comfortable market making with such collateral, however, given liquidity and redemption mechanisms exist for these collateral types it shouldn’t be too bad

Thanks

1 Like
2

I like the idea perhaps more in depth study is required to see which model if any will be suitable keeping all the cons in mind.
Regarding btc/meme not really optimistic.

3

Just hire a digital marketing agency :face_with_hand_over_mouth:

4

@jubi What is Quanto perps?

Creating markets that use different quote assets should be relatively straight forward, as it’s just a case of proposing new assets for the collateral bridge. Eg. WETH (and USDC) is accepted on ethereum mainnet, but they’ve never been used.

Creating markets one could rely on Pyth oracles. The oracle “transformer” contracts used on various markets now actually provide more functions than the getPrice(id). There’s also two other variations that can be seen by inspecting the contract code on gnosisscan (both of which are indirectly used now); getPrice(id, quote, decimals), where id is the Pyth ID for the base asset, eg BTC, quote is the Pyth ID for the quote asset, eg. PEPE and decimals is how many decimal places to return for Vega to consume. The decimal places is probably best left at the default 18, since that surely has implications other places in market proposals. Someone would also need to ensure that timely and recurring price updates are posted on the gnosis pyth oracle. There’s probably a way to look at recent updates and inspect which feeds are active.