Collateral Management

To ensure robust liquidity and uphold the stability of synthetic exchange pairs, xperp employs a collateral management strategy. The following sections outline key aspects of our approach, including initial collateral, growth projections, and specific details regarding the exclusive use of ETH, internal pricing mechanisms, and collateral capacity limits.

Initial Collateral

xperp has secured an initial loan of 50 ETH, serving as collateral for synthetic exchange pairs. This collateral base ensures a solid foundation for the platform's liquidity, allowing users to engage in trades with confidence.

Growth Projection

Anticipating the rising demand for synthetic assets, xperp expects continuous growth in our collateral holdings. This trajectory aligns with the platform's expansion and eliminates the necessity for additional loans in the near future. The growth not only supports user activities but also contributes to the overall stability of xperp's ecosystem.

Collateral Management Strategy

Our collateral management strategy prioritizes user asset protection while enabling them to maximize their trading potential. The following elements illustrate our commitment to maintaining a secure and efficient trading environment.

Exclusive Use of ETH

At launch, xperp will exclusively accept ETH mainnet deposits as collateral. This decision streamlines our processes and risk management efforts, aligning seamlessly with our primary goal of providing ETH rewards. Users can confidently deposit ETH to initiate leverage trading on our platform.

Collateral Capacity Limit

To mitigate the risk of overleveraging and safeguard our liquidity pool, xperp has implemented a strict position limit. The total open interest will never be higher than 50% of our collateral capacity, a measure designed to maintain a healthy balance and reduce potential risks associated with excessive leverage.