> For the complete documentation index, see [llms.txt](https://docs.vdex.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vdex.trade/trading/yield/sustainable-bitcoin-yield.md). # Sustainable Bitcoin Yield The VMM allows liquidity providers to lock stablecoins, such as USDT and USDC, as well as [Volatile Asset Collateral (VAC)](/protocol/whitepaper/volatile-asset-collateral.md) like WBTC and WETH. Unlike other protocols, VAC is not swapped to stablecoins or a constant vault equity. Instead, as the value of the underlying assets change, the proportion of the vault owned changes as well. For example, a user deposits 1 Bitcoin when $BTC = $100,000, so they have $100,000 equity. The total vault equity is $500,000, so the user has a 20% share. If $BTC increases to $110,000, then equity updates proportionally to $110,000 and their share increases to 21.56%. Therefore, changes in VAC function similarly to deposits and withdrawals. This fulfils the role of a lending protocol, natively integrated into the VMM. Unlike manual lending protocol and vault strategies, VAC has: * no liquidations * no manual rebalancing * capital efficiency with collateral priced exactly at mark #### Profit and Loss Positive yield on VAC is denominated in USDT. Realized losses on VAC will be deducted according to the mark price at withdrawal. Unrealized losses will not swap out VAC for stablecoins. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.vdex.trade/trading/yield/sustainable-bitcoin-yield.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.