FAQ
What is Vela Trade?
Vela Trade is a next-generation decentralized exchange for spot and perpetuals trading on Solana. Designed for both high-performance traders and passive investors, Vela offers up to 100x leverage, ultra-low fees, and deep liquidity through its pool-to-peer model. Unlike traditional exchanges, Vela also introduces copy trading, enabling users to automatically follow and replicate the strategies of top traders.
How does Vela Trade keep price impact low?
Vela ensures optimal trade execution by using Pyth’s real-time oracle network, which continuously aggregates price data from over 20 major exchanges. This system allows the protocol to dynamically adjust pricing and fees, ensuring trades are executed with minimal slippage and fair pricing.
What is copy trading on Vela?
Vela's copy trading feature allows experienced traders to create dedicated trading pools, where followers can deposit collateral to automatically mirror the trader’s positions.
Traders gain access to additional capital, earning a share of the profits from successful trades.
Copy traders can passively benefit from the strategies of top performers without actively managing positions.
Deposits and withdrawals are only possible when the trader is not currently in a position, ensuring smooth execution and risk control.
Why provide liquidity on Vela?
Liquidity providers play a key role in the Vela ecosystem by supplying capital to the Vela Trade Liquidity Pool (VLP). In return, they earn a share of the protocol’s revenue, generated from trading fees and liquidations. This system allows LPs to earn real yield while supporting an efficient trading environment.
How is yield generated?
Liquidity providers earn yield from multiple sources, including:
Trading fees from swaps, margin trades, and position openings/closings
Liquidation fees collected when undercollateralized positions are automatically closed
Is Vela Trade open-source?
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