USDT Vault

Liquidity efficient

Deposit USDT and receive bearing-USDT token (dUSDT) to use as collateral.

The USDT vault serves as the liqudity for all synthetic trades made in the platform.

Since synthetic trading does not need to buy or sell the asset, but trades its value, it is not necessary to create a liquidity pool for each pair that you want to trade. Instead, Dexynth uses USDT Vault to serve as the counterparty for all trades and pairs, making it easy to add new pairs.

This is possible because the architecture doesn’t match buying/selling orders using an order books, rather it uses virtual trade leveraging and generates the PnL thats simulated through smart contracts.

Winning trades result in payouts from the vault to the user, while losing trades result in the user making a payment to the vault in USDT.

• When traders win (positive PnL), their winnings are received from the vault.

• When traders lose (negative PnL), their losses are sent to the vault.

The Vault receives 40% of trading fees. These fees are proportionally split among dUSDT shareholders, incentivizing stakers to stay in the vault.

Collateralization of the vault depends on trader PnL. As long as fees earned are greater than PnL payouts, stakers earn a positive return.