Multi-Asset Mode

Introduction

Defx supports a multi asset mode that enables users to trade USDC margined perpetual contracts using assets deposited from multiple blockchain networks. Under this mode, users may deposit any supported asset from the available list, and the system calculates the USD value of each asset by applying its designated collateralization ratio to the asset’s current index price. The index price data is obtained from Pyth, which serves as the price oracle on Defx.

In practical terms, the effective USD margin for a deposited asset is calculated by multiplying the asset’s collateralization ratio by its index price and the quantity deposited.

For example, if the collateralization ratio for sUSDe is 0.8 and its index price is 1.25, depositing 625 units of sUSDe will result in an effective margin computed as (0.8 * 1.25 * 625), which equals 625 USD.

Benefits of Multi-Asset Mode

• Retaining Capital Exposure: Traders can maintain exposure to their existing portfolio of assets across multiple chains without the need to convert them to USDC. This allows for direct utilization of diversified holdings across the entire Defx platform.

• Capital Efficiency: Instead of liquidating an individual asset when its value falls below the liquidation threshold, Defx employs the basket of deposited assets to mitigate losses. This approach minimizes the impact of a single underperforming asset on the overall margin, promoting efficient capital management.

• Cross-Chain Compatibility: Defx supports the deposit and withdrawal of assets across various blockchain networks. This cross-chain functionality enables users to manage their digital assets seamlessly, regardless of the originating network.