What is Vela Exchange (VELA)?
👋 New to this? Just start reading at the top — it begins in plain English and gets more detailed as you scroll. Jump to any level:
🟢 The simple version
Plain English — no jargon. Start here.
Vela Exchange is a perp DEX on Arbitrum where VLP (USDC-only pool) acts as counterparty to all trader positions — simpler than GMX's multi-asset GLP — with oracle-based pricing for major pairs and ~100M VELA governance + staking.
VLP vs GLP
GMX GLP: basket of ETH, BTC, USDC, etc. (complex exposure). Vela VLP: USDC only (simple, no crypto price exposure from collateral). Both earn trading fees from being the counterparty. VLP holders earn fees when traders lose; absorb losses when traders win. Oracle pricing (Chainlink) means no slippage for major pairs. ~100M VELA governance + staking revenue. Is VELA legal in India? Yes. 30% tax, 1% TDS apply.
🟡 A bit more detail
For when you want to go a little deeper.
Vela in the perp landscape
Arbitrum perp DEX competition: GMX (dominant, multi-asset GLP), Hyperliquid (grew rapidly, own L1), Vertex (unified spot+perps+lending), Vela (USDC-only, simpler). Hyperliquid's rise in 2024 took market share from all Arbitrum perp DEXs. Vela differentiates on USDC-only simplicity and lower fees.
🟣 The full technical picture
For the technically curious.
Key facts
- Token: VELA (~100M)
- VLP: USDC-only counterparty pool
- Chain: Arbitrum
- Pricing: Oracle-based (Chainlink)