BounceBit's Quanto system natively implements this capability on-chain: you can open positions in the BTC/USD market while using other assets like BB and ETH as collateral, with profits and losses settled in the collateral assets. For multi-asset users and market-making teams, this effectively removes the barriers of cross-currency and cross-chain, making trading and capital allocation smoother.
Mechanically, Quanto is a decentralized perpetual contract without expiration; positions can be held long-term as long as they meet margin requirements. Its key feature is the separation of the 'trading target' and 'collateral asset': for example, if you go long on BTC/USD using BB as collateral, the system uses a fixed exchange rate for on-chain unified measurement, ultimately settling profits and losses in BB. This allows you to gain price exposure in any supported market without adjusting the underlying asset.
Why is this important? First, the efficiency of capital is significantly improved. You do not have to split positions across multiple chains and exchanges; the collateral leg is unified on BounceBit, allowing for flexible strategy adjustments. Second, settlement and clearing are internalized. Profits and losses are closed-loop within the same ecosystem, reducing friction and delays from cross-domain settlements. Third, the threshold is lower and combinations are more flexible. The type of assets you hold no longer restricts the markets you can trade, naturally expanding the strategy coverage.
The fee mechanism centers around 'borrowing imbalance', balancing fine granularity and systemic steady state: • Who pays: The side with greater open interest (OI) pays the borrowing fee, while the other side does not. Market signals guide a return to balance. • Billing hierarchy: Fees are calculated separately for each trading pair, as well as for the asset group (Group) to which that trading pair belongs; the system selects the higher one to take effect without overlapping charges. • Billing base: Calculated based on the nominal value of positions (collateral × leverage) and accumulated by blocks. The formula can be understood as 'borrowing fee per block = nominal value of position × current block fee rate' (specific rates depend on contract parameters).
Professional users should understand 'Quanto Risk': When the price of the underlying (e.g., BTC) is out of sync with the collateral asset (e.g., BB, ETH), the net value is simultaneously affected by both curves; positive correlation may amplify profits, while negative correlation may also increase drawdowns. Therefore, it is recommended to: • Choose collateral assets with lower correlation to your strategy or more controllable volatility; • Hedge with legs on BitSwap or other derivatives to manage cross-currency exposure; • Set strict margin and position reduction thresholds to avoid chain liquidations triggered by correlated events.
Simplified Path: • Prepare Collateral Assets: Hold BB, ETH, or other supported assets on the BounceBit chain, which can be quickly exchanged through Superfast. • Access Entry: Visit club.bouncebit.io/defi/quanto, connect your wallet, and select the target market and leverage. • Position Building and Management: Track margin rates, funding fees, and borrowing fees in real-time after submitting your order; dynamically adjust positions based on OI and market changes. • Settlement and Exit: Profits and losses are settled in collateral assets, with closing or reducing positions instantly verifiable on-chain.
Quanto achieves both 'asset freedom' and 'on-chain transparency': on one end, it interfaces with a broader market coverage, and on the other, it consolidates complexity with unified settlement and risk control. For actively managed wallets, quantitative institutions, and market makers, this is both a tool for capital efficiency and a new piece for risk hedging. If you want to separate positions and capital legs more professionally, Quanto deserves to be your default derivatives entry.
