Vega Protocol Update: Evaluating Value Accrual

Earlier this month, we published a deep dive on Vega Protocol, one of the most ambitious attempts to build an on-chain exchange. Since then, we’ve received a lot of questions about how Vega looks against competitors in the market, whether the token economics makes sense, and the potential value creation for the VEGA token. We like to give the people what they want, so without further ado, let’s get right into it!

Stacking up the Competition

In our initial post, we discussed the architectural differences between Vega and dYdX. But we also higlighted that Vega’s scope as a full-stack exchange is much larger than dYdX (a perpetuals exchange). For the sake of argument, let’s compare a range of decentralized trading venues to Vega.