Phoenix Trade, a perpetual futures exchange developed by Ellipsis Labs on the Solana blockchain, has introduced native SOL as collateral for leveraged positions. This update, launched on September 16, 2026, allows traders to bypass the previous requirement of converting SOL into USDC before initiating trades.
The platform values deposited SOL at up to 80% of its index price, applying a 20% haircut to mitigate risks associated with market volatility. While SOL serves as margin, all settlements, including profits, losses, fees, and funding rates, continue to be denominated in USDC.
The new collateral model enables users to open leveraged positions on various assets, including cryptocurrencies and US equities like GOOGL, TSLA, and AMZN, without incurring slippage or transaction fees from asset conversion. Ellipsis Labs first announced these plans in July 2026.
The integration carries inherent correlation risks, as a decline in SOL price may simultaneously reduce a trader's margin and move their positions against them. The 20% buffer is intended to protect the system from liquidation cascades, though the exchange notes that extreme volatility could impact this protection.
