Vertex Protocol Migrates to Ink Network, Retires VRTX Token

Coin WorldTuesday, Jul 8, 2025 3:12 pm ET
2min read

Vertex Protocol, a decentralized exchange, has announced a significant transition by migrating from the Arbitrum blockchain to the Kraken-backed Layer-2 network, Ink. This shift marks a pivotal moment for the protocol, as it aims to enhance its infrastructure and align with the strategic goals of the Ink Foundation. The migration involves not only a change in blockchain but also a comprehensive overhaul of the protocol's core infrastructure, including the retirement of its native token,

.

The decision to migrate to Ink is driven by the need to bolster

Protocol's growth and survival in the highly competitive decentralized finance (DeFi) sector. Vertex Protocol, which launched on Arbitrum in 2023, has struggled to gain traction despite significant investor support during its initial fundraising. The protocol's CEO, Darius Tabai, highlighted that increased competition in the perpetual trading sector prompted the migration. He believes that Ink's goal of vertical integration of multiple applications aligns with Vertex's growth ambitions, providing a more robust and efficient platform for its operations.

As part of the transition, Vertex Protocol will sunset its current

Virtual Machine (EVM) deployments. A new version of the decentralized exchange (DEX) will launch exclusively on the Ink Layer-2, purpose-built for speed, capital efficiency, and on-chain composability. This move brings Vertex’s synchronous order book engine and perpetual trading technology directly into Ink’s DeFi stack. The Ink Foundation will absorb Vertex’s engineering team, ensuring a seamless transition and continued development of the protocol's advanced infrastructure.

One of the most striking changes in this migration is the retirement of the native VRTX token. Holders of VRTX will be compensated with an airdrop of Ink tokens, with eligibility determined by a snapshot taken on July 8, 2025. This decision comes as the VRTX token has struggled significantly, losing around 98% of its value since its November 2023 debut. Its market capitalization has plummeted from early 2024 levels of $77 million to $3.47 million at the time of the announcement. The migration to Ink and the retirement of VRTX are strategic moves aimed at positioning Vertex Protocol for long-term growth and sustainability in the rapidly evolving DeFi landscape.

The shift has caused a 40% plunge in VRTX token value, impacting Arbitrum’s network as it loses a top decentralized exchange. It's a strategic realignment towards Kraken's backed Ink network, which may lead to slower Arbitrum growth. The financial implications include burning of VRTX tokens and potential jumps in INK’s value once distributed. Vertex aims to improve capital markets integration by joining the Ink infrastructure, following models set by similar protocol migrations.

Future regulatory or technological outcomes may affect decentralized finance's landscape. Historical trends show some layer-2 migrations succeed in enhancing network efficiency. Kraken's backing could potentially provide stability and growth for Vertex within the new Ink ecosystem. The migration underscores Vertex's strategy to adapt to growing competition within decentralized finance. Market responses include a notable drop in VRTX’s value, indicating the market's acknowledgment of the changes underway.

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