HOW TO
Last updated
Last updated
Firstly, you'll need a Sei-compatible wallet, which can be either a browser extension or a smartphone app. vDEX supports a variety of wallets including Compass, Keplr, Solflare, Fin, and Leap. Click the following links for step-by-step instructions on how to install them:
After installing and setting up one of the above wallets you need to connect it to vDEX. Upon visiting vDEX's dApp, you will notice a 'Connect Wallet' button on the top right of your browser window. Click on the 'Connect Wallet' button. A window will pop up, asking you to select the wallet you installed in step 1. The software wallet will now prompt you to confirm the connection to vDEX.
Make sure your wallet is set for Devnet/Testnet Mode
First-time vDEX tester needs to Initialize a User Account. If you saw this error message, we recommend you check if you are on the Devnet, if the problem persists, use another wallet instead.
Click Faucet on the top right to gain free funding for test transactions.
Once you've completed these steps, your wallet is connected to vDEX. You can proceed to use the dApp according to your needs.
Click "Long" or "Short" to select the type of leveraged position you wish to open. A long position will profit if the token's price increases and incur a loss if the price decreases. A short position works the opposite way, profiting if the token's price decreases and incurring a loss if it increases.
Once you have chosen your position type, enter the amount you want to invest and the leverage you want to apply. For example, 186 USDC could be used to purchase a 1.1x-30x leveraged ETH long position valued from 204 to 5580 USDC.
The "Entry Price" will be displayed, which is the current market price of the token. Also, the "Liquidation Price" will be shown, which is the price at which your position will automatically close to prevent further losses. The "Exit price" is the price that is used to calculate profits if you open and immediately close a position. The exit price will change with the price of the token you are longing or shorting.
Note that there is a position fee of 0.1% of the position size for opening and closing a position.
While there are no price impacts for trades, slippage may occur due to price movements between when your trade is submitted and when it is confirmed on the blockchain. Slippage refers to the difference between the expected price of the trade and the execution price. The available liquidity indicates the size of the slippage. You could instead use limit orders to avoid slippage.
After opening a position, you can view it in your Positions list.
Note that once you open a position or deposit collateral, a snapshot of the USD price of your collateral is taken. For instance, if your collateral is 0.1 ETH and the price of ETH is 1864 USD at that time, your collateral is worth 186.4 USD and will remain so even if the price of ETH fluctuates.
Leverage is calculated as the ratio of the position size to the collateral amount (Position Size / Position Collateral). To adjust the leverage rate, you could increase or decrease your position on the same asset with a higher or lower collateral ratio than your original position.
Your profits and losses will be proportional to your position size. For example, if you use 186.4 USD to buy 1864 USD of ETH and ETH's price increases by 10%, you'd earn a profit of 186.4 USD. However, if ETH's price decreases by 10%, you would suffer a loss of the same amount. The opposite occurs for short positions.
You can wholly or partially close a position by clicking on the "Market" button. Profits from long/short positions are paid in your trading asset.
Stop-Loss / Take-Profit Orders:
You can set stop-loss and take-profit orders by clicking the "Limit" button to choose a trigger price to control your exit. After the order has been made, it will appear under the "Orders" tab.
If you close a position manually, the associated trigger orders will remain open. You must cancel them manually if you don't want the order to be active when opening future positions. Note that orders are not guaranteed to execute at the trigger price.
Liquidations:
Each position has a Liquidation Price, the price where your losses nearly equal your collateral amount. The position will be automatically closed if the token's price falls below this point.
The liquidation price may change over time due to the borrowing fee, especially if you use high leverage and keep the position open for several days. Therefore, it's crucial to monitor your liquidation price.
If there is any collateral left after deducting losses and fees, it will be returned to your account.
VLP tokens can be bought/sold using the Buy VLP page.
VUSD tokens can be minted/redeemed using the Mint VUSD page.
Options to bridge funds to mint/buy the tokens can be found at the bottom of those pages.
After minting your VLP/VUSD tokens, they will automatically be staked, and you will start earning rewards; you can check your rewards on the Earn page.
VUSD's yield reflects on its quantity: VUSD's price is pegged to USDC, and VUSD's quantity increment will reflect its yield. Given 30% APR, your 100 VUSD will gradually increase its quantity to 130 VUSD.
VLP's yield reflects on its price: VLP's price is based on 1) pending profits and losses from all currently opened positions, 2) real yield from collecting protocol fees, divided by the total GLP supply (which is fixed unlike VUSD). Given a 30% APR, VLP's price will gradually increase by 30%.
VLP/VUSD's auto-compound vault is under construction and will be live on V2, there's a one-click compound button for V1.
After a 24-hour vesting period (to avoid JIT attacks), your VLP/VUSD tokens can be sold using the Redeem VLP/VUSD page.
