VDEX
  • overview
    • Introduction
    • What is VDEX?
    • Core Features
      • Omnichain Trading
      • Full Self-Custody
      • Sustainable BTC Yield
      • ZeroGas Transactions
      • Sub-Millisecond Finality
      • No KYC, No VPN Restrictions
  • Trade
    • Platform
      • Getting Started
      • Platform Navigation
      • Deposit and Withdraw
      • Supported Collateral
      • Pairs
      • Finality Time
      • Perps
      • Orders
      • CLOB
      • Margin
      • Leverage
      • Liquidations
      • Fee Schedule
      • Gas Fees
      • Funding Rate
      • Insurance Fund
    • Access
      • Chain Abstraction
      • No VPN, No KYC
    • Beta
    • Market Making
    • Security
      • VDEX Fund Protection
      • Dispute Resolution Mechanism
      • Oracle and Collusion Safeguards
  • Yield
    • Virtual Market Maker
    • Volatile Asset Collateral
    • Fund Strategy
  • Ecosytem
    • Overdrive
      • Overdrive: The Ultimate Trading Advantage
        • Activating Overdrive
        • Key Participants
      • Market Makers-Overdrive
      • Traders-Overdrive
    • Bug Bounty Program
    • Bug Reporting Guidelines
    • Contact & Support Channels
    • FAQ
    • Whitepaper
    • Definition of Terms
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  1. overview
  2. Core Features

Sustainable BTC Yield

Earn Safely on Your Bitcoin.

Bitcoin is the largest crypto asset by market cap, but it is often underutilized as productive collateral. VDEX unlocks sustainable yield opportunities for BTC holders without the risks associated with impermanent loss.

  • BTC & ETH Collateral: Deposit Bitcoin and Ethereum into the Virtual Market Maker (VMM) to earn passive yield.

  • No Impermanent Loss: Yield is generated from trading fees and liquidations, not from holding volatile pairs.

  • Full Withdrawals: Depositors can withdraw their assets in the same currency they deposited.

How It Works: Users deposit BTC or ETH into the Virtual Market Maker (VMM) pool. The VMM uses this liquidity to fill trades and liquidations, earning fees from trading activity. These fees are distributed as yield to depositors.

Why It Matters: BTC holders can generate yield while maintaining self-custody, unlocking passive income opportunities without sacrificing security.

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Last updated 15 days ago