Volatile Asset Collateral

Crypto Liquidity Without the Hassle

Bitcoin and Ethereum hold the largest liquidity pools in crypto, yet their potential as trading collateral is often untapped. Traders must traditionally go through lending markets to convert their holdings into stable coins before accessing perpetual trading. VDEX changes this by allowing Bitcoin, Ethereum, and other major volatile assets to be used directly as collateral eliminating unnecessary steps, reducing trust assumptions, and improving security.

How It Works

VDEX takes a unique approach to volatile asset collateral by separating the asset’s value from the trader’s profit and loss. Instead of forcing traders to liquidate their Bitcoin or Ethereum for stablecoins, VDEX allows direct collateralization at par value. This means:

• No need to borrow stablecoins: Trade with your WBTC, WETH, USDT, and USDC while maintaining exposure to their price appreciation.

• Seamless margin adjustments: Changes in WBTC or WETH prices are treated as deposits or withdrawals in your margin account.

• Automated risk management: If losses exceed the current value of the volatile asset, VDEX initiates a liquidation process to prevent bad debt.

By integrating VAC with its VIRTUAL ROLLUP architecture, VDEX ensures ultra-fast execution (sub-millisecond finality) and ZeroGas transactions critical for maintaining the efficiency of volatile collateral.

Pay Out

To provide traders with a stable and predictable settlement mechanism, all trading profits on VDEX are settled in USDT, Even when BTC, ETH, or USDC is used as collateral. Whether you deposit Bitcoin or Ethereum, your trading profits will always be credited to a stable asset.

This approach ensures:

• Stable profit settlements: Avoid volatility affecting realized earnings.

• Easier risk management: No need to convert earnings into stable coins post-trade.

• Broad accessibility: Use different assets for collateral without impacting your final profit payouts.

With Volatile Asset Collateral on VDEX, traders gain flexibility, efficiency, and security, all while keeping their profits stable in USDT.