Sustainable BTC Yield

VDEX enables the collateralization of Bitcoin and Ethereum at face value. Volatile Asset Collateral is not converted at deposit, allowing margin and yield accounts to reflect real-time changes to underlying asset value.

For example, a user deposits 1 Bitcoin when $BTC = $100,000, so they have $100,000 margin. If $BTC increases to $110,000, then margin updates proportionally to $110,000. Within margin accounts, this enables capital efficient funding arbitrage and delta-neutral hedging.

This applies to equity within the Virtual Market Maker as well. Liquidity providers may deposit Bitcoin and Ethereum and receive yield proportional to the real-time value of their assets. They also enjoy the appreciation or depreciation of the underlying asset.