DeFi protocol Vega has launched “Liquidity and Market Maker Programme”, a program to grant market makers early-access to the platform ahead of its public test-net launch.
The startup comprises of a Proof-of-Stake protocol that facilitates the creation of leveraged financial products.
“We anticipate market makers could earn 10 to 20 times higher returns by deploying collateral on Vega Protocol as opposed to traditional exchanges." – @RudolphTamlyn 👀 Find out more by visiting our forum at https://t.co/kUPfxmBgHc https://t.co/dQpIHsbjBl — Vega Protocol (@vegaprotocol) June 4, 2020
Vega believes that it can attract robust liquidity by offering liquidity providers significantly higher returns than traditional exchanges.
Vega co-founder Tamlyn Rudolph speculated that market makers could earn between ten and 20 times than that offered by traditional centralized platforms:
“We have disintermediated the typical expenses incurred by exchanges, with the preserved profit largely redirected to the market makers on Vega.”
Rudolph stated that Vega’s model is intended to reward liquidity providers “for the high-value activity of incubating and growing healthy markets,” estimating that market makers will receive between 50–70% of total fee revenues generated on the platform.
Vega co-founder Barney Mannerings said:
“We recognize the essential value provided by market makers and innovators, so the protocol strongly rewards the value they add with a share of each market’s overall revenue.”
Mannerings further adds:
“Current market infrastructures benefit from fantastic economies of scale, which currently help to line the pockets of exchanges and other rent-seekers while traders are charged excessively for services that should be cheap or free.”
In addition to gaining access to Vega’s private testnet, program members will gain access to Vega’s protocol design, technical teams, tools, and will be afforded input regarding the protocol’s features and roadmap.
Vega’s “Liquidity and Market Maker Programme” has already attracted liquidity providers based in the United States, Israel, Singapore, Australia and Switzerland.