Volatile Asset Collateral

VRC-8

Abstract

Volatile Asset Collateral (VAC) is a VDEX asset standard that supports the collateralization of crypto majors at face value. Bitcoin and Ethereum deposits receive margin or yield equity equal to the present value of those assets. As the values of collateralized assets change, margin is added or subtracted proportionally. In cases of profit and positive yield, USD-denominated state is added. In cases of loss, USD-denominated state is subtracted, but the underlying VAC is not converted until withdrawal or liquidation. This means that if losses are reversed, the principle VAC is untouched.

Features

• Funding arbitrage

• Delta-neutral hedging

• Sustainable Bitcoin Yield