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 BTC or ETH while maintaining exposure to their price appreciation.
Seamless margin adjustments: Changes in BTC or ETH 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.
