Multi-collateral trading is now available on Aboard Exchange
The long-waited multi-collateral trading is here. You can now trade with WBTC, ETH, USDC, and USDT on Aboard Exchange!
What is multi-collateral trading?
Multi-collateral allows you to trade with different tokens. Aboard previously only allowed traders to use USDC, and all pairs are denominated in the USDC prices. Now you can trade with WBTC, ETH, USDC, and USDT on Arbitrum.
Why do we need multi-collateral trading?
There are two significant reasons that we decided to offer multi-collateral trading:
- First, we have a vision of creating a 0-barrier on-chain derivatives DEX. In other words, people don’t need any DeFi knowledge and can still trade on Aboard Exchange without confusion. Allowing users to trade with various collaterals is essential, as swapping between tokens can confuse newbies.
- Second, we understand that hodlers do not want to swap their tokens to USDC. Therefore, we want to ensure you can hodl and capture the price opportunities simultaneously!
How to trade with different collaterals on Aboard Exchange
Aboard currently supports WBTC, ETH, USDC, and USDT on Arbitrum. You can choose between four collaterals using the deposit page's drop-down menu.
There are no discount rates or deposit limits for USDC and USDT. However, because the WBTC and ETH involve more risks, we currently have a discount rate of 5% for WBTC and ETH. The deposit limit is 5 BTC and 100 ETH per address.
Example: A trader can deposit 100 ETH, and 95 ETH will be available for trading. If he doesn’t open any positions and there are no realized PnL by the time he withdraws. He can then withdraw 100 ETH to his wallet.
What’s coming next
- Aboard will offer multi-collateral trading on Avalanche, allowing traders to use AVAX as collateral.
- Aboard will launch a trading SDK that allows protocols to integrate our perp trading functions and liquidities on Avalanche and Arbitrum. With the multi-collateral trading function, Aboard’s trading SDK will enable protocols to use native tokens as collaterals or trading fees.
- Aboard is working with third-party providers to break down the on-chain derivatives barriers further. Upcoming features include fiat on-ramp, creating wallets with E-mails, and cross-chain liquidities.
FAQs
Why is there a discount rate for WBTC and ETH?
We pay close attention to risk management, and WBTC and ETH involve more risks. Prices can fluctuate drastically in extreme conditions, so we impose a discount rate of 5% for WBTC and ETH.
Does Aboard take the 5% discount as profit?
No. The 5% is used for risk management, not a fee or trading cost. However, if there is a significant drop in the price and you happen to be liquidated, there is a long-tail risk of losing the 5% deposits.
Will there be more collaterals?
Depending on community needs and market trends, we can add more tokens as collaterals.
Will Aboard offer multi-collateral trading on Avalanche?
Yes, very soon.
About Aboard Exchange
Aboard is the leading order book derivatives DEX on Arbitrum and Avalanche. We aim to bring the centralized trading experience and TradFi users into the DeFi world. Aboard currently offers tokens, synthetic assets, and index perpetuals. We will launch more derivative products, including additional perps, options, and more in the future. Aboard will also launch an advisory protocol that allows traders to sell their strategies and manage funds transparently.
