DVX supports 8 assets as collateral on the Mitosis Testnet.
Collateral List
HubAssets
miAssets
LBTC
miLBTC
ETH
miETH
USDT
miUSDT
USDe
miUSDe
Hub Asset: Assets minted on Mitosis after users deposit their Origin Assets to Mitosis Vault on each supported network
miAsset: Tokenized vault shares received when depositing into EOL Vaults
Features
Synthetic Trading Flexibility
DVX employs a synthetic trading framework that allows traders to engage in any trading pair using ETH, USDT, USDe, LBTC, miETH, miUSDT, miUSDe, or miLBTC as collateral. This method means that instead of directly buying or selling the underlying assets, traders are speculating on their price movements.
Fees in Collateral
Trading fees are settled using the collateral provided, which streamlines the transaction process and aligns seamlessly with your trading strategy.
Risk Management
DVX manages risk at the collateral level by ensuring each collateral type is supported by its own MITO Vault and separate liquidity pools. This structure means that if the open interest for $USDT reaches its maximum capacity, other collateral options remain available for use.
Collateral-based Position Sizing
The size of each position is determined by the type of collateral used, rather than the traded asset or its notional value. This approach simplifies the management of liquidation risks by maintaining a consistent position size regardless of collateral price fluctuations, making trading strategies more transparent and predictable (further details can be found on the next page).
Advantages
Our approach streamlines the management of liquidation risks. By providing a variety of collateral options and making both fees and risk management more straightforward, we strive to improve the overall trading experience, giving traders enhanced control and flexibility in their strategies.
