Vexchange 2: VeChain Decentralized Exchange Has Been Introduced
The upgrade to Vexchange V2 from V1 brings many new features and improvements to Vexchange. The platform is just like Uniswap V2.
Vexchange V1 was the proof-of-concept for a new type of decentralized marketplace. s a venue for pooled, automated liquidity provision on VeChain, the Vexchange protocol (Vexchange) functions without upkeep, providing an unstoppable platform for VIP180 token conversion. Vexchange V1 will continue to work for as long as VeChain exists, and so far, it has worked very nicely for a wide variety of use cases.
Vexchange V2 is the second iteration of Vexchange and includes many new features and improvements. In Vexchange V2, any VIP180 token can be pooled directly with any other VIP180 token. Wrapped VET (WVET) is used instead of native VET in the core contracts, although end users can still use VET through helper contracts.
In Vexchange V1, all liquidity pools are between VET and a single VIP180 token. Having a constant numeraire provides a nice UX advantage — users can swap any VIP180 for any other VIP180 by routing through VET. Since VET is the most liquid VeChain-based asset and does not introduce any new platform risk, it was the best choice for Vexchange V1.
Having direct VIP180/VIP180 pairs can also improve prices because routing through VET for a swap between two other assets (say, DAI/USDC) involves paying fees and slippage on two separate pairs instead of one.
Vexchange V2 includes a number of improvements for price feeds built on top of it. First, every pair measures (but does not store) the market price at the beginning of each block, before any trades take place. This price is expensive to manipulate because it was set by the last transaction in a previous block.
ABOUT Vechain
VeChain is a blockchain platform designed to enhance supply chain management and business processes. Its goal is to streamline these processes and information flow for complex supply chains through the use of distributed ledger technology (DLT).
