Phoenix Trade Allows SOL as Collateral for Perpetual Futures Trading

On September 16, 2026, Phoenix Trade, a perpetual futures exchange built on Solana by Ellipsis Labs, announced that traders can now use native SOL as collateral for leveraged positions. This update eliminates the previous requirement to convert SOL into USDC before trading across various markets, including crypto, US equities, and commodities.

Previously, SOL holders had to sell their tokens for stablecoins to participate in perpetual trading, which involved additional costs and inefficiencies. With the new feature, SOL can be directly posted as margin, valued at up to 80% of its index price, allowing traders to maintain their SOL holdings while engaging in leveraged trading.

The 80% valuation applies a 20% haircut to SOL deposits, designed to mitigate the risks associated with SOL's volatility. For instance, if SOL's index price is $100, it will be considered worth $80 for margin purposes. Despite this adjustment, all profits, losses, and fees will continue to be settled in USDC, regardless of the collateral used.

This dual-asset approach offers traders implicit exposure to SOL's price movements. If SOL appreciates, the effective margin increases, providing more leeway before liquidation, whereas a decline in SOL's price could tighten margins.

In addition to crypto pairs, Phoenix's platform also includes leveraged perpetuals on popular US equities such as GOOGL, TSLA, and AMZN, enhancing market access for traders. The introduction of SOL as collateral aligns with Ellipsis Labs' plan disclosed in July 2026, demonstrating their commitment to improving capital efficiency in trading.

While the new collateral option enhances trading flexibility, it also introduces correlation risks, particularly during market downturns when SOL's price may fall alongside traders' positions. The 20% haircut aims to provide a buffer, but extreme volatility could still pose challenges for traders using SOL as margin.