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Sumaa

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multi-collateral on a perps protocol is one of those things that's seemingly very simple, but actually very tricky to implement if you want to keep it both decentralized and efficient. What currently exists: Drift style multi-collateral: Deposit usdc against alternative collateral types PROs: - Simple implementation CONs: - You're capital efficiency is capped by the LTV on the lending market - Rebalancing or swapping collateral becomes trickier - fee's on funding rates + lending rates --------------------- Aevo style multi-collateral: What I like to call just-in-time multi collateral. Users are forced to maintain a usdc balance, whenever this balance goes below a certain threshold aevo swaps a multi-collateral asset into usdc to top up. PROs: - higher capital efficiency CONs: - entirely centralized - not really true multi-collateral - a user could deposit 1 BTC but overtime this continuously gets slowly swapped to usdc
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