BSX Liquidation Vault: FAQ
The BSX Liquidation Vault is the best way to securely park your stablecoins on Base, generating lucrative yields from market liquidations with minimal risk. This guide will quickly walk you through how to get started, manage your funds, and maximize your returns.
What You'll Need
A crypto wallet (MetaMask, WalletConnect-compatible wallet, or Ledger)
USDC for depositing (minimum 100 USDC recommended)
Basic understanding of DeFi concepts
Step 1: Connect Your Wallet
To get started:
Visit app.bsx.exchange or download the BSX mobile app from the App Store or Google Play.
Click "Connect Wallet" in the top-right corner.
Choose your wallet provider (MetaMask, WalletConnect, or Ledger) and confirm the connection.
Step 2: Deposit USDC
Deposit stablecoins (currently USDC):
On the main dashboard, select "Wallet" from the left menu.
Find USDC, and click "Deposit" to the “Perpetuals” account.
Enter the amount to deposit. A minimum of 100 USDC is required.
Confirm the transaction in your wallet.
Tip: You can use BSX Swap to swap crypto to USDC. BSX also enable cross-chain deposit from 20 chains to Base.
Step 3: Access the BSX Liquidation Vault
On your dashboard, select "Vault" from the navigation menu.
Choose "BSX Liquidation Vault" from the list.
Step 4: Deposit into the Vault
Click "Deposit" on the Vault page.
Enter the USDC amount (minimum 100 USDC).
Review and agree to the terms, including the short lock-up period (typically 24 hours).
Click "Confirm" and approve the transaction in your wallet.
Tip: Start with smaller deposits to become comfortable.
Step 4: Monitor Your Vault Performance
Easily track your investment through:
Dashboard Overview: View your balance, ROI, and recent activities.
Transaction Logs: See detailed records of deposits, profits, and activities.
Performance Analytics: Analyze personal ROI and historical performance.
Step 5: Withdraw Your Funds
To withdraw:
Select "Withdraw" from the Vault dashboard.
Enter the withdrawal amount.
Review your earnings summary and any applicable fees.
Confirm the transaction in your wallet.
Note: Funds have a short lock-up period (typically 24 hours) before being transferred out of the vault. This safeguard prevents cascading effects or potential attacks on the vault.
Why the BSX Liquidation Vault?
Stable Yield with Minimal Risk
The BSX Liquidation Vault offers the best way to securely park your stablecoins on Base, delivering consistent, sustainable yields derived directly from critical market liquidations rather than inflationary incentives.
ROI: Achieved an impressive 18% ROI.
APY: Historical APY of 110% since inception.
Enhanced Stability and Transparency
The Vault uses advanced liquidation strategies that protect the market from volatility.
All activities occur transparently on-chain, verifiable through the BSX explorer.
Accessible to Everyone
With a low entry barrier (just 100 USDC), anyone can earn institutional-grade yields previously exclusive to market insiders.
Important Considerations
Risk Management: While the Liquidation Vault is designed to minimize risk through diversification and smart liquidation algorithms, all DeFi activities carry some level of risk.
Lock-up Period: Your funds will be unavailable for withdrawal during the initial lock-up period (typically 24 hours).
Market Dependency: Returns depend on liquidation opportunities, which vary based on market conditions and trader activities.
Gas Fees: All transactions (deposits, withdrawals) require gas fees on the underlying blockchain.
Getting Support
If you encounter any issues or have questions:
Visit the "Help" section in the BSX app.
Join the BSX Discord community at https://discord.com/invite/Jg7q3mV37Z
Contact support via the in-app chat function.
Check the BSX knowledge base at docs.bsx.exchange.
Conclusion
The BSX Liquidation Vault represents a new paradigm in DeFi—democratizing access to functions previously reserved for exchange operators and privileged insiders. By following this guide, you've taken your first steps toward participating in this innovative yield-generating mechanism.
Remember that while historical performance shows promising returns, past performance doesn't guarantee future results. Start with amounts you're comfortable with, monitor performance regularly, and adjust your strategy as you gain experience with the platform.
Note: This guide reflects BSX Liquidation Vault features as of March 2025. The platform continuously evolves, so some features may change over time.
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