Vela Exchange vs GMX Exchange! What YOU Need to KNOW!

In this video we’re going to take a look at the Villa exchange and we’re gonna compare that to the GMX exchange and if you’re unfamiliar with both of these exchange you’re probably living under a rock but don’t worry because I’m here I’m gonna tell you guys exactly what

These exchanges are and in a nutshell it’s simply a Perpetual exchange and these are decentralized exchanges so we’re not dealing with any centralized exchanges now what I want to do is I want to first start off with GMX a lot of people are familiar with how this

Ecosystem works but what I want to compare exactly here is the tokenomics from both of these exchanges to understand what is the potential of the new Villa exchange so if we go ahead and we look at the documentation for GMX it does say that the forecasted Max Supply

Is 13.25 million GMX tokens then it kind of gives you a breakdown of where all of these toe tokens are going these are obviously minted over time it’s not a Max Supply as soon as GMX launched they are currently sitting around 8.3 million in terms of circulating Supply but it

Also says that they could mint more than 13.25 million tokens and they say that this option would only be used if more products are launched and liquidity mining is required and they do also say that a governance vote would obviously take place so it’s important to keep

That in mind because they do have a Max Supply but it’s not necessarily set in stone now if we take a look at GMX on their dashboard we can see that they currently have a supply of 8.4 million GMX out there and that is a market cap of roughly

464 million with the current price of GMX being around 55 now I have been in GMX for quite some time now I’m not holding on to GMX itself but rather I am providing liquidity in the form of the glp token and that is earning me some passive income in the form of avax

Because I am participating on this on the Avalanche chain so just to give you guys an idea of what it looks for my dashboard as we can see I hold about 1400 glp and right now I’ve made about 10 avax I’ve already taken out about

Eight avacs and we can see that I also have about 2.23 avax that I could take out and these are the fees that are generated on this platform and as a liquidity provider as a glp holder I am getting a portion of those fees in both

Avax as well as GMX so we can see here the APR I’m right now only getting some in avax but it rebalances every single week and we can also see see that I do have about 1.66 escrow GMX which is also worth about a hundred dollars so I have

Made some money on this and I have been loving glp and gmx’s whole ecosystem now if we take a look at the new Villa exchange this is what is coming out relatively soon here it’s supposed to come out on January 31st so that’s only

In a few days it’s only going to be a beta at first but nonetheless this is the new era of Perpetual dexes so what I want to do now is I want to compare GMX that many people already know about and I want to compare it to Fila and point

Out some of the differences in both of these dexes because of course both of them are Perpetual dexes they are very similar but Villa is offering a few new things so if we take a look at Cam’s tweet on Twitter deaf definitely recommend following him he has some

Great insights on a lot of different projects and has been doing a great job on Twitter with providing information there is going to be a link in the description below to this thread here but he does an amazing job comparing GMX and the new Villa exchange so first

Things first on GMX you are allowed to go all the way up to 50x leverage and on the Villa exchange you’re going to be able to go all the way up to 100x now if you’re not too sure what leverage does I would strongly recommend doing some

Research on that before you start using it because you could simply just blow up your account in the matter of a few seconds now if we continue on here he says architecture was built from day one from scratch to support any synthetic asset now he also says LP is a hundred

Percent stable coin backed reducing volatility and being delta neutral now if we just take a look at a snapshot of what this trading platform is going to look like as we can see everything looks similar to a centralized exchange as we know we have the leverage meter here all

The way up to 100x then you have your take profit your stop losses whatever you want to do whether it’s a long position a short position you have ethereum I do believe there’s going to be three pairs to start off with they’re gonna have Bitcoin ethereum and Doge I

Would assume that more and more pairs are gonna come as this launches but this is an overview of what it’s going to look like now if we go back to what he said here he said LP is a hundred percent stable coin backed and if we go

Back to GMX to understand this a bit more as we can see it glp here is a liquidity token of GMX and the composition of glb is actually made out of all of these different crypto coins now as I said I’m providing liquidity on the Avalanche chain but if you do this

On arbitrum you would have more in terms of ethereum but as we can see you have 50 of the glp allocation that is made of stable coins and the rest are volatile assets and the vlp token which is the liquidity token of the Villa exchange is

Going to be based on usdc and usdc alone it’s not going to have any avax it’s not going to have any ethereum or any volatile Assets Now if we take a look at their documentation it says that vlp is a liquidity provider token of the Villa

Exchange of course we know that and it’s based on usdc staking and can be redeemed for usdc at any time now going down in their documentation they say that if you are are planning to Mint vlp there is going to be a bit of a cool down period about three days to cool

Down before you can actually switch it back to usdc and it also says that usdc is going to be the only available option at the time of launch so maybe they are going to add future stable coins but again vlp is always going to be backed

By stable coins and it won’t have any allocation as to having other volatile assets now you may be asking yourself well Eric why in the world would I want to Mint vlp why not just hold a usdc well similarly to glp if you are minting vlp you are going to earn some platform

Fees and you’re gonna earn up to 60 of the platform fees generated by trading activities so very very similar concept to glp with GMX as the liquidity providers of the this exchange you are entitled to get 60 of the platform fees and if we take a look at this diagram we

Can see that the vlp pool is of course affected by Traders making or losing money is similar to GMX and we can also see that the vlp pool is actually being provided with fees from opening slash closing trades as well as vlb minting fees as well as funding fees for

Leverage now going back to Cam’s thread if we continue on with the differences he says a huge amount of additional trading management options including stop market orders linked orders as in multiple triggers for single position multiple take profits for one position and more so obviously we can understand

That there is going to be a lot more additional features that you can have on the Fila Exchange in order to trade that you’d not necessarily have on GMX now moving on there is going to be a Fiat onboarding slash off-boarding integration and that’s actually massive

Because as we all know as crypto users in order to get your money off of whatever it is in you need a centralized exchange and here if Villa exchange actually offers that where you can take your Bitcoin or whatever you hold and move it out of that and put it into your

Bank account that is going to be a great asset for Villa and it may bring more people to use this exchange than another exchange for example now you’re also going to be able to probably use a credit card I’m not sure which third party they’re going to be using but

You’re going to be able to onboard your Fiat into this exchange as well and there’s also a real-time notification engine so if you want to stay up to date with your trades you can obviously enable those notifications there are going to have lower fees than GMX that’s

Interesting as well they are also going to be performing The Villa buyback program this Villa token is the utility and governance token of the Villa exchange and it’s very similar to the GMX token for the GMX exchange now you may be wondering what is this Villa buyback program now to understand better

What the Villa buyback model we have to understand the reward cycle and each reward cycle is going to be 35 days in terms of length of course the cycle zero doesn’t count here it is a bit different but if we take a look at Cycle One cycle

Two cycle three you’re gonna see that they are gonna be collecting fees for the first 14 days then there’s going to be a buyback period which is what we’re going to talk about and then there’s going to be rewards paid for the next 14 days and that’s going to be the rewards

Paid to the people who are providing vlp now to zoom in on the buyback model this is a mechanism that will be used to stabilize the supply of villa now they do offer a formula here but I think it’s much easier if we understand it with an

Example and as we can see these buyback periods are happening every two weeks over a span of seven days and to give an example let’s say that the projected buyback treasury values is 350 000 and that will essentially be dedicated to words Villa BuyBacks and to

Get this 350 000 that would go to BuyBacks this isn’t assuming that there would be 500 000 in spot trading fees and one million dollars in Perpetual trading fees so to continue on with this example this would mean that 350 thousand dollars would be going to buy

Back the Villa token and that is literally done in the open market so that’s definitely something interesting and something to take note of and that the Villa bought back from the market is going to be used as a reserved which is going to be held in a dedicated wallet

To pay rewards for the Villa for the e-villa as well as for people providing liquidity so this is a very interesting model of course it all depends on how much this platform is generating in terms of fees but again this goes to show that they are going to have a

Continued buyback of the Villa token now going back to Cam’s thread and to finish this off one of the things I’m also super excited about is the fact that astrobit is going to be utilizing this decks in order to have their trading bots on there as we can see here this is

Exactly what we have cam saying and I am personally using Astro bits I am loving these Bots and I’m definitely excited to see these Bots go on a DEX rather than on a centralized exchange because of course we never know when the next centralized exchange is going to fail so

To summarize what we’ve talked about and there’s so much more to talk about but I don’t want to make this video more than 30 minutes long so to summarize GMX is the utility token and governance token of the GMX exchange and glp is the liquidity token of GMX now similarly

Villa is the utility and governance token of the Villa exchange and vlp is going to be the liquidity token as well for the Villa exchange now the moment you’ve all been waiting for is what were to happen to the price of villa if we had the same market cap as GMX now go

Going back to the GMX dashboard as we’ve said there is a market cap of roughly 463 million dollars and right now we need to understand what is the distribution of the Villa token how much are there and where is all of that going so as we can see from this graph we have

The allocation of the Villa token and exactly where that is now to understand this a bit better we have to go and to understand how much and how many tokens are going to be emitted through its cycle through the ecosystem and what is happening there so the maximum supply of

Villa is actually a hundred million tokens but keep in mind this is not minted on day one this is going to be emitted throughout the years to come and it’s obviously a lot more than what GMX currently has as we know GMX has has about 8.4 million tokens with a soft cap

Of about 13.25 million tokens so if we take a look at this graph here we can see the emission of the Villa token throughout the years and as we take a look if we imagine we’re in 2025 we can see that there would be around 33

000 tokens in circulation now to do an actual comparison with this we have to take a point in time and to understand what would be the supply at this given point so I’m going to take 30 000 Villa tokens in circulation which would basically bring us to the mid part of

2024 around May around June we can see that this line intersects with 30 million so that means that in June 2024 there are going to be 30 million tokens and we can now do a comparison with GMX so if we take our calculator and we know

That the current market cap of GMX is a 463 million so if we put that in and again if we assume that in 2024 there are going to be 30 million tokens of villa in Supply not too sure if that’s going to be circulating Supply or the

Max Supply we are still going to have to wait and see how all this ecosystem comes out but to be conservative let’s assume that there’s 30 million tokens in circulating Supply so if we do that and we divide it by 30 million tokens to get

The price of one Villa token and if we do that that’s going to give us a price of 15.4 dollars for the Villa token in 2024 when we have this amount of tokens in circulating Supply we can see that if Villa were to hit the same market cap as

The current market cap of GMX we can see a price of about 15 now you can obviously do this with any Assumption of the Villa token so if we were to say there’s 463 million in terms of the GMX market cap and that even if it says

There are going to be 30 million tokens here let’s assume the circulating Supply would only be 25 million so instead I can go ahead and divide this by 25 million and that would mean that Villa would be at about 18 so this is how you can compare GMX and Villa and to give

You an idea of where Villa is currently trading it’s only been out for a few days and the exchange isn’t even out yet so keep that in mind but right now it is sitting around two dollars and 42 cents now something else to keep in mind there’s only 10 million circulating

Villa in this ecosystem right now so as we take a look at this again it is going to continue increasing and as it continues to increase you have to keep that into account because of course if more and more tokens are in circulation and if you compare that to the GMX

Market cap you have to keep that in account now lastly I’ve seen a lot of people use the dxp allocation to calculate a potential price for Villa and I don’t believe that is the right way of doing it because the dxp allocation is only seven percent of the

Entire Villa Supply so again you have to take the entire supply of villa and not only the current dxp allocation so just keep that in mind but with all of that being said I’m super excited to see what happens with the Villa exchange I’m actually providing liquidity to Villa so

I have Villa and wrapped ethereum in a pool accumulating some fees for me as well and I’m probably going going to get into vlp similarly to glp and provide liquidity to villas exchange so I hope you guys enjoyed the video if you have any questions let me know down in the

Description below I am going to leave a few links down there and if you want to join my Discord and ask me anything there you can do that as well but if you’ve enjoyed the video smash the like button subscribe to the channel if you’re new and I’ll catch you guys in my

Next video peace

Hey Guys,

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Cam’s Twitter Thread: https://twitter.com/0xZenpai/status/1616559202834722816?s=20&t=JqdT4ovNGoy4xi9y6ePHEA

In this video we go over the brand new Vela Exchange and compare it to GMX. We go over the additional features that Vela Exchange will have and compare the tokenomics of both platforms.

Time Stamps:
0:00 Introduction
0:46 GMX Tokenomics
1:57 My GLP Position
3:15 Vela Exchange Intro
3:56 Comparison
13:50 Vela Tokenomics
14:40 Vela Distribution
15:25 Vela vs GMX
18:20 DXP Mistake
18:44 Conclusion

#vela #bitcoin #crypto

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I am not a financial Advisor. This video is for entertainment and education purposes only! Should you want professional advice, please contact a financial advisor. I cannot and will not be held liable for any actions you take as a result of my opinions and the content in this channel, any of its social media platforms, or websites. The information provided on this channel is for informational purposes only and should not be taken as advice. DO NOT make buying or selling decisions based on videos from this channel.

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