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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  • How It Works
  • All Profits in USDT
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  1. Yield

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 stablecoins 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.

All Profits in USDT

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 stablecoins 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.

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Last updated 3 days ago