Solana-Based Phoenix Trade Integrates SOL as Collateral

Phoenix Trade, developed by Ellipsis Labs on the Solana network, has integrated SOL as collateral for perpetual markets. Traders can now deposit SOL and use it to back margin positions directly across crypto assets, commodities, and tokenized equities.

The initial margin weight for SOL is set at 80%, compared to the 100% retained by USDC. This means that the risk engine assigns a lower value to SOL deposits, designed to absorb the token's intrinsic volatility without compromising the solvency of the on-chain order book.

According to DefiLlama data, Phoenix Trade's cumulative perpetual volume stands at $2.834 billion, with over $37 million traded in the past 24 hours and open interest standing at $10.19 million.

Market analysts surveyed by industry outlets suggest that supporting volatile collateral could drive higher daily trading volumes in the short term. However, they caution that sharp declines in SOL's market price could trigger more frequent automated liquidations for highly leveraged accounts.