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.