Phoenix Adds SOL Margin for Solana Perpetuals

Phoenix, a non-custodial perpetual futures exchange on the Solana blockchain developed by Ellipsis Labs, has enabled native SOL as collateral alongside USDC across its network of over 80 markets, according to an Investing.com report. The update allows traders to maintain exposure to spot token prices while opening derivatives positions without needing to convert their assets into stablecoins.

"Traders on Solana today should not have to make the tradeoff between holding spot and trading perpetuals," said Eugene Chen, CEO of Ellipsis Labs, the development team behind Phoenix, in the report. "SOL collateral solves this tradeoff. A trader can stay long SOL, post it as margin, and run a basis trade or take a position in any Phoenix market without touching USDC."

Collateral Weights and Liquidation Mechanics

Under the new multi-asset margin system, different cryptocurrencies carry distinct valuation parameters to account for market volatility. While USD Coin (USDC) maintains a 100% collateral value for margin calculations, SOL has been assigned an 80% collateral weight, meaning its contributing margin value moves directly in tandem with prevailing market prices.

To manage credit risk during sharp market downturns, the platform utilizes an automated liquidation engine. If an account's equity falls below its required maintenance threshold, the system first reduces open derivatives positions and then sells only the precise amount of SOL necessary to cover any remaining USDC liability.

Expanding Beyond Stablecoins

SOL represents the inaugural asset introduced under Phoenix's newly deployed multi-collateral architecture. Developers designed the system to incorporate additional tokens over time based on network demand, with each incoming asset requiring its own dedicated price oracle, collateral weighting, and liquidation parameters.

The integration affects derivatives trading across Phoenix's entire catalog of more than 80 markets, which includes perpetual contracts spanning cryptocurrencies, equities, and commodities.