"Backpack Crypto Boosts Capital Efficiency with Interest-Bearing Futures"

Backpack Crypto Introduces Interest-Bearing Futures for Enhanced Capital Efficiency

Backpack Exchange, a leading cryptocurrency trading platform, has recently introduced Interest Bearing Perpetuals, a novel feature designed to optimize capital efficiency and trading strategies. This innovation enables traders to earn yield on both their collateral and unrealized gains, providing a more comprehensive trading experience.

Understanding Interest Bearing Perpetuals

Backpack Exchange has developed a unique approach to trading by allowing users to earn interest on their collateral while engaging in perpetual futures trading. This system differentiates itself from traditional centralized exchanges (CEXs), where collateral typically remains inactive.

Features of Backpack’s Interest Bearing Futures

One key aspect of this feature is the ability to earn yield on collateral. Rather than remaining idle, lent assets generate interest while being used for margin trading, enhancing overall capital efficiency. Additionally, traders can benefit from unrealized gains, which increase margin availability and are automatically reinvested into the lending pool, allowing users to maximize returns over time.

Backpack Exchange also offers a single cross-margined account, enabling traders to utilize multiple assets as collateral across different trading products, such as spot-margin, futures, lending, and borrowing, without the need to manage separate accounts. Another advantage is the flexibility in PnL and settlement, allowing users to opt for automatic borrowing of USDC for payments and settlements, reducing the need for manual conversions of non-USD collateral.

How Backpack Compares to Other Exchanges

While other exchanges may offer cross-margin for futures, Backpack is among the few platforms that integrate it across all trading products. Unlike competitors such as Binance or Bybit, which require separate accounts for different assets, Backpack streamlines this process under a single system.

Advantages of Using Backpack

Traders can engage in perpetual swaps while earning yield on their margin, ensuring that their funds remain productive at all times. Spot margin trading is also more efficient, as the platform automatically manages borrowing and repayments, simplifying the trading process. Backpack places a strong emphasis on transparency and risk management, with a clear risk model that helps traders better manage their positions and reduce exposure to sudden margin calls.

Who Can Benefit from Interest Bearing Perpetuals?