Crypto derivatives protocol Vega launched on Wednesday its Alpha mainnet. This blockchain was built to specifically handle decentralized derivatives trades of financial products like futures and options.

Alpha supports a wide range of assets and market types, such as futures, spot exchanges, options, and perpetuals. These track the price fluctuations of different tokens and allow users to develop strategies that profit from these changes.

A developer on Telegram told CoinDesk that Vega token holders can vote and propose the creation of derivatives markets. Traders will be able to start trading immediately without gas charges. VEGA is a ERC-20 token that runs on the Ethereum blockchain. It interacts with the Vega Blockchain via an Ethereum-to Vega Bridge.

Market makers are able to operate on the same basis as any other exchange based on orderbooks. They can also commit capital as liquidity providers on-chain in order to earn a share of trading fees.

The protocol does not require traders to have the vega coin. Vega does not charge a separate fee for placing orders or for trading. For many users, this means that unlike other deFi protocol, they only need the tokens to trade.

Vega Protocol has a feature that discourages front running, which developers claim will attract traders. Front running is the practice of a trader or market maker buying a token, then selling it in the same transaction at a higher price.

Sheldon Reback is the editor.