Can Cryptocurrencies Other than the Base Asset Be Used as Collateral for Derivatives Trading? ⎊ Path

Can Cryptocurrencies Other than the Base Asset Be Used as Collateral for Derivatives Trading?

Yes, many crypto derivatives exchanges allow traders to use various cryptocurrencies, such as major altcoins or stablecoins, as collateral (margin) for trading. This is often done through a multi-asset collateral system.

However, the exchange may apply a 'haircut' to the value of the non-base asset collateral to account for its price volatility.

Can a Trader Use Other Assets as Collateral to Meet a Margin Call?

How Are Stablecoins Different from Other Cryptocurrencies?

How Does the Correlation between Collateral and the Underlying Derivative Affect the Haircut?

How Can a DAO Treasury Use Stablecoins to Mitigate Native Token Inflation Risk?

What Is a “Haircut” in the Context of Collateral Valuation?

Are There Any Cryptocurrencies That Have a Similar Supply Mechanism to Rebase Tokens?

How Do Other Cryptocurrencies, like Ethereum, Differ in Their Target Block Times?

Can Collateral Other than Cash Be Used for Bitcoin Futures Margin?

Glossar

Base Asset

Asset ⎊ The base asset serves as the fundamental underlying instrument for a derivative contract, such as a cryptocurrency like Bitcoin or Ethereum.