Bitcoin's next chapter. Yield by Default.

vToken is an ERC-4626 yield-bearing token native to VIA L2. It represents a user's share of the underlying lending pools on Ethereum, where their bridged assets are deposited. vTokens continuously accrue value as interest is earned on Ethereum, and at any time they can be redeemed for the underlying assets plus yield. On VIA, vTokens are the default currency. They can be used to pay transaction fees, provide liquidity, swap, or serve as collateral in other DeFi applications.

Yield accrues automatically within the redemption value of vTokens. Users do not need to manually "claim" rewards. On VIA, the vToken balance in a wallet remains the same, but its redemption rate into the underlying asset increases over time. When a user redeems vTokens (either on VIA or back on Ethereum), they receive the underlying principal plus accrued yield. And this yield can be used directly on VIA as this token is an ERC4626.

vTokens are fully composable assets within the VIA ecosystem: Pay transaction fees on VIA. Provide liquidity in VIA's native DEX pools. Trade and swap like any ERC-20. Post as collateral for borrowing or derivatives. Simply hold as a yield-bearing store of value. All of these uses are possible while vTokens continue to accrue yield from the Ethereum lending pools.

Yes. vTokens are fully redeemable at any time. <br>A user who holds vTokens on VIA can exit the system by bridging back to Ethereum, where their share of the underlying lending pool is unlocked. Redemption always reflects both the principal and the accumulated yield up to that moment. If a user tries to redeem assets and there's no liquidity, the transaction will revert and fail because the smart contract cannot fulfill the request. To enable redemption, the user must wait for more liquidity to be supplied to the pool or for existing borrowers to repay their loans. They might also need to monitor the pool's utilization rate to see when liquidity becomes available.

The redemption rate of vTokens is updated on a regular schedule to reflect interest accrued in Ethereum lending pools. By default, this happens hourly, but the update frequency can be reduced to every five minutes or less, depending on network activity and liquidity conditions. This ensures that yield accrual remains responsive and accurate without sacrificing efficiency.

Yes! The VIA Network Bridge is now live on testnet. We encourage you to try it out and share your feedback to help us improve the experience. Try it here