Vega
Ethereum Ecosystem
Vega is a protocol for the decentralized trading and execution of financial products. It is designed for fully automated, end-to-end margin trading on open public networks, secured with proof of stake.
In synthesis, Vega can be described as a smart contract initiator. Still seems fairly centralized as the algorithms in place can still halt market trading whenever there is projected price volatility.
APY | ~10% |
Total Supply | 64,999,723 (max supply) |
Compounding | Manual |
Compounding Frequency | Once per epoch (24 hours) |
Reward Distribution Period | Once per epoch (24 hours) |
Unbonding Period | One epoch (24 hours) |
Validator Self-Bond Requirement | |
Recommended Wallet | |
Slashing Penalty | No slashing implemented |
Before we get into the step-by-step guide there's a few things that should be kept in mind:
- 1.Trading is disbaled, meaning that it will not be possible to create markets and trade on the Vega mainnet just yet.
- 2.VEGA token holders can delegate their tokens to validators, and start receiving staking rewards for securing the network.
- 3.Governance voting is enabled, meaning the Vega community will be able to define the best network configuration in preparation for the Alpha release.
Still here? Seems like you're ready for the step-by-step guide!
1. Connect your wallets:
Since VEGA tokens are ERC20 tokens on the Ethereum Network, the first step is to connect a wallet holding the tokens (i.e. via Metamask or anything similar for that matter, on the Ethereum Mainnet).
Once you Click Connect Vega wallet you should be able to connect your wallet through this window below.
2. Associate your tokens:
Now we have to associate your tokens with your VEGA wallet. For this all you have to do is select “Associate VEGA tokens with Wallet” as seen below.
Then select your wallet and the amount you want to stake.
Note: always make sure to double and triple check your public key.
Click Approve VEGA tokens for staking on Vega and you should see a confirmation as below.
Click Associate VEGA Tokens with key and you should see a confirmation
Done and done! You are now ready for the last step!
3. Nominating your Stake:
After selecting your validator, click on the Add button
You should see this confirmation below.
BOOM done! You are now a VEGA staking master!
Vega's governance is designed specifically to provide on-chain governance for the creation and maintenance of well functioning markets in a decentralized environment.
The primary on-chain governance mechanic in Vega is voting by network participants based on their stake within the scope of the poll, for example:
- i) for network governance issues stake would be measured in terms of a participant’s holding of the network’s native crypto asset whereas
- ii) for market governance decisions, stake may be measured by the notional value of a participant’s net position, their market making stake or a combination of both.
Vega plans to introduce native functionality that in the past has often required integration with multiple other chains. This hyperfunctionality will hopefully allow Vega to keep a vast amount of value on-chain.
What is Vega?
Vega is a protocol for the decentralized trading and execution of financial products. It is designed for fully automated, end-to-end margin trading on open public networks, secured with proof of stake. In synthesis, Vega can be described as a smart contract initiator. Still seems fairly centralized as the algorithms in place can still halt market trading whenever there is projected price volatility.
What is protocol staking?
On a Proof of Stake blockchain, protocol staking is the act of depositing tokens in order to become a validator; that is, to participate in proposing and attesting to transaction blocks. Anyone with a minimum necessary coin balance can validate transactions and earn staking rewards on these blockchains.
What is the name of the asset being staked?
The native token on Vega is called VEGA.
What is the VEGA token used for?
VEGA token is crucial to the security and governance of the network. Vega token holders can participate and vote on governance decisions such as new market approvals, changes on rewards distribution policies, review fee prices to propose, and protocol development.
VEGA token holders can take part in the security and governance of the network by staking or delegating their tokens. In return, they earn 33% of the trading fees generated by the network plus inflation rewards.
Where can I explore the network and create a Vega wallet?
Explorer Suggested wallets: Vega Wallet, Metamask, Trust
How long does it take to stake and unstake?
VEGA tokens can be staked and delegated even while locked, allowing token holders to participate in the network from the very first day. The unbonding period is also short, taking one day (one epoch) only.
Will I keep receiving rewards after I unbond?
No. Once you unbond you stop receiving rewards.
Which type(s) and what rate of rewards can I expect?
Staking rewards vary depending on the percentage of VEGA that is staked. The expected APY is 10.4%. This figure might
When do rewards get distributed?
Vega staking rewards are distributed 3 days after the start of each epoch which is approximately 24hrs.
How is staking income disbursed?
Rewards are distributed every epoch between validators and token holders in a ratio defined through the governance community proposal. Rewards can be monitored and withdrawn here.
Is reward compounding automated?
No, rewards must be compounded manually
What affects future yields?
Token holders' yields are strictly correlated with the long-term success of the VEGA protocol. By raising the trading volume on the network and the number of new markets within the VEGA ecosystem, the tokens fee share generated from trading fees also grows and therefore impacting token holders' yields.
Can my staked VEGA be slashed (seized or destroyed)?
Currently, Vega does not enforce slashing. However, in case a validator doesn’t validate the blocks assigned it won’t be eligible for rewards.
What is the rate of new issuance (aka "annual inflation") for VEGA? How does the token supply change?
Inflation on Vega is subject to release periods of different tranches as follows: An initial circulating supply of 2 million tokens (currently 21,747,283 tokens) Six months later, about 7.5 million tokens After one year, it'll be about 19 million tokens In two years it will be approximately 60 million tokens
What is the total supply of the VEGA token?
The total supply is fixed at 64,999,723 VEGA.
Do I maintain custody of my VEGA tokens? Who or what controls my staked VEGA token?
Yes, tokens are only associated with Vega but you maintain custody of it at all times. Figment is non-custodial, which means we are never in control of your staking income and staked asset. We have partnerships with a number of top-in-class custodians, for inquiries, please contact [email protected]
How are decisions about Vega made and executed?
Vega is designed to operate without centralized human intervention, it’s therefore operated and controlled by rules built into the code. Vega on-chain governance lets network participants vote based on their stake within the scope of the poll, for example: For network governance issues stake would be measured in terms of a participant’s holding of the network’s native crypto asset whereas for market governance decisions, stake may be measured by the notional value of a participant’s net position, their market-making stake, or a combination of both.
Last modified 5mo ago