Cross-collateral deposits
By default, markets are quoted in USD and P&L is settled in USDC. All tokens deposited within the protocol can earn yield via Borrow/Lend. Until unrealised P&L is settled into your Balances, it will not earn (if profits) or be charged (if losses) the deposit/borrow interest respectively.
Below is a table of assets supported by Drift Protocol.
Each asset counts towards margin for derivatives trading and has a weight applied to account for their respective volatilities.
For instance, depositing USDC gives users a 1:1 margin for derivatives trading, but depositing SOL (80% asset weight) means that 80% of the value of your SOL at the opening of your position will be available as margin for perpetual futures trading.
Margin Parameters
| Asset | Initial Asset Weight | Maintenance Asset Weight | Initial Liability Weight | Maintenance Liability Weight | IMF Factor |
|---|---|---|---|---|---|
| USDC | 100% | 100% | 100% | 100% | 0 |
| SOL | 80%* | 90% | 120% | 110% | 0.003 |
| mSOL | 80%* | 90% | 120% | 110% | 0.003 |
| wBTC (portal) | 80%* | 90% | 120% | 110% | 0.105 |
| wETH (portal) | 80%* | 90% | 120% | 110% | 0.025 |
| USDT | 90% | 95% | 110% | 105% | 0.0004 |
| JitoSOL | 80%* | 90% | 120% | 110% | 0.00055 |
| PYTH | 50%* | 75% | 150% | 125% | 0.00055 |
| bSOL | 80%* | 90% | 120% | 110% | 0.00055 |
| JTO | 50%* | 75% | 150% | 125% | 0.00055 |
| WIF | 25%* | 50% | 175% | 150% | 0.00055 |
| JUP | 50%* | 75% | 150% | 125% | 0.00055 |
Initial Asset Weights are also scaled lower based on notional value of total deposits. As a reference, you can check out UI or the SpotMarket get_scaled_initial_weight_asset for this scale factor.
The IMF Factor acts as a discount on account size:
Initial Asset Weight on 2000 SOL Collateral (using above) would be:
weight = min (.80, 1.1 / [ 1 + (0.003 * sqrt(2000)] )
= min(.80, ~.96987) = .80
An asset's liability weight can be converted into an LTV ratio using:
ltv = 1 / liability weight
| Asset | Initial LTV | Max LTV |
|---|---|---|
| USDC | 100% | 100% |
| SOL | 83.3% | 90.9% |
| mSOL | 83.3% | 90.9% |
| wBTC (portal) | 83.3% | 90.9% |
| wETH (portal) | 83.3% | 90.9% |
| USDT | 90.9% | 95.2% |
| JitoSOL | 83.3% | 90.9% |
| PYTH | 66.7% | 80.0% |
| bSOL | 83.3% | 90.9% |
| JTO | 66.7% | 80.0% |
| WIF | 57.1% | 66.7% |
| JUP | 66.7% | 80.0% |