SOL Powers Up: Phoenix Trade Lets Traders Use Native Solana Coin as Collateral

Phoenix Trade has rolled out an update allowing traders to use native SOL as collateral for leveraged positions on its perpetual futures exchange. This move eliminates the need for traders to swap SOL into USDC before trading, reducing capital efficiency costs associated with conversion fees and opportunity cost.

The platform applies a 20% haircut to SOL deposits, valuing each token at up to 80% of its index price for collateral purposes. This buffer aims to absorb volatility in SOL's price, protecting the system from rapid liquidation cascades during sharp drawdowns.

Phoenix Trade already offers a wide range of assets on its platform, including US equities like GOOGL, TSLA, and AMZN. Now, traders can use SOL without converting it to take leveraged positions on these stocks.