Polynomial Trade
Trade
Perp v3 (beta)
Perp v3 (beta)
  • Polynomial Trade
  • FAQ
  • Perp V3
    • What's new?
      • Multi-Collateral
    • Setup RPC
    • Testnet Competition
    • Calculations
  • Trade V2
    • Trading Guide
      • Limit Orders
      • Stop Orders
      • Take Profit / Stop Loss
    • Perp
      • Basics of perp
      • Funding rate
        • Funding On Polynomial
      • Orders
      • Leverage
      • Liquidation
      • Jargon
    • Smart Wallets
    • Standard Order
    • Advanced Order v2
    • Fees
      • Optimism Bedrock
  • Strategies & Tools
    • 1-Click Funding Arbitrage(beta)
      • Guide
      • FAQ Funding Arbitrage
    • Funding Rate Arbitrage 101
  • Partners
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      • Pyth Oracle
      • Chainlink
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  1. Perp V3
  2. What's new?

Multi-Collateral

Overview

How does Multi-Collateral work?

When traders deposit alternative tokens like sBTC or sETH into their margin wallet, the system converts these assets' market value into sUSD to display them as collateral. However, traders still have the ownership of the originally deposited tokens. Due to the volatile nature of these assets, the value of the margin can fluctuate accordingly.

Closing positions and loss handling

When a position is closed and incurs a loss, the asset used for collateral is automatically deducted, converted into sUSD, and used to cover the shortfall.

Fee & Funding Payment Structure

Once the product goes live on Base Mainnet, fees and negative funding will be deducted using tokens with the least to most slippage, in the following order (likely - not yet live): sUSD, sBTC, sETH, sOP, and other tokens. This means that traders will first pay fees using their sUSD margin. If they don't hold sUSD, the system will use sBTC, then sETH, and so forth. By employing this approach, traders can minimize the impact of slippage when paying fees.

Profit & Funding rate (positive) are always paid in sUSD

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Last updated 1 year ago