vUSDC Perps Pool
VLP & vUSD automatically became lenders and counterparties; while VLP has higher volatility & potentially higher return, vUSD has minimal risk & relatively stable return.
Last updated
VLP & vUSD automatically became lenders and counterparties; while VLP has higher volatility & potentially higher return, vUSD has minimal risk & relatively stable return.
Last updated
vDEX is redefining DEXs by introducing USDC-margined DN-perp and a liquidity pool (Automated Asset Manager) supporting the synthetic perpetual trading of blue chip tokens.
Automated Asset Manager operates under our Risk Management & LP Seniority (RMLP) system, where liquidity providers can actively engage with market volatility. The pool is categorized into two tiers, each representing a different risk and return profile: VLP (Volatility Liquidity Pool) and vUSD (Stable Liquidity Pool). Generates competitive risk-adjusted returns for depositing stablecoins.
vUSD
Steady protocol revenue with minimal risk
VLP
Protocol revenue + Protocol P&L + VDX Incentive
The counterparty of all transactions is the VLP + vUSD pool. These LP tokens are only composed of USDCs; users can use USDCs to mint VLP/vUSD to start market making. It is a single currency liquidity, so there is no problem of impermanent loss. Since the counterparties of all transactions are LPs (traders open long means LPs open short, and vice versa), it's a zero-sum game between LPs and traders.
In vDEX's case, the price of VLP factors in the pending PnL of the opened long and short positions. The margins of traders' losses will be directly allocated to VLP (reflected in the price increase of VLP), and traders earn profits directly from VLP (reflected in a drop in the price of VLP). This design allows VUSD to enjoy zero delta & zero gamma exposure & zero dynamic hedging costs.
VLP/vUSD tokens are not tradable in the current stage and can only be used to redeem the locked USDC. In the future, vUSD will be a tokenized liquid staking derivative (LSD), representing a staked position in vDEX but with added liquidity.
vDEX's liquidity provision operates under our Risk Management & LP Seniority (RMLP) system, where liquidity providers can actively engage with market volatility. This pool is segmented into 2 tranches, each representing different risk and return profiles:
The VLP pool is designed for investors who prefer high returns:
Traders’ P&L: VLP directly handles the profit and loss from trading activities, making it suitable for those who seek to benefit from market movements. VDX Incentives (points): Liquidity providers in the VLP are rewarded with VDX, the native utility token of vDEX, which serves as a liquidity staking reward. At the initial stage of Mainnet Beta, you'll get points (convertible to VDX tokens soon!) based on your liquidity's duration and proportion. Enhanced Protocol Fees: This pool receives a higher percentage of transaction fees, compensating for the higher risk undertaken by the liquidity providers.
Buying and selling: VLP can be purchased using USDC and sold for USDC.
The vUSD pool is designed for investors who prefer stability and consistent returns:
Zero P&L Exposure: Participants in the vUSD pool are shielded from the direct impacts of P&L fluctuations, offering zero delta exposure & zero gamma exposure. Consistent Protocol Fees: Although the overall rewards are lower than those of the VLP (as VLP holders are subsidised with VDX), vUSD offers a stable and reliable income, which is ideal for conservative investors.
Minting and Redemption: vUSD can be minted using USDC and burnt to redeem USDC.
60% -> VLP+vUSD
10% -> VLP
10% -> Referrer of vUSD LP
20%-> DAO/VDX
VLP is currently whitelisted only, vUSD is open to all users and under a referral program.
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, we're building a one-click compound button for V1.
