Quanto

club.bouncebit.io/defi/quanto

Quanto is a decentralized perpetual quanto smart contract that allows users to open long or short contracts by staking any supported token. The first highlight feature of Quanto is its perpetual aspect, which means contracts do not have an expiry date, allowing positions to remain open as long as the margin requirements are met. "Quanto" is a term used in finance to describe a type of derivative in which the underlying security is denominated in one currency, but the derivative itself is settled in another currency at a fixed exchange rate. These derivatives are particularly useful for hedging and managing currency risk. The “quanto” characteristic allows users to stake assets that are not native to the blockchain on which Quanto operates, in this case the BounceBit network.

Guide:

Quanto

Fee Calculation

Borrowing fees

The direction of borrowing fee payments is determined by Open Interest (OI) imbalance:

• The side with greater OI (longs or shorts) is responsible for paying the fee

• The side with lower OI receives no charges

Borrowing fees are assessed at two levels:

• Individual trading pair level

• Group level that the pair belongs to

• The system applies whichever fee is higher (never combines them)

Fee calculation basis:

• Applied to total position value (calculated as collateral × leverage)

The formula for borrowing fee per block is:

feePerBlock * (abs(longOi - shortOi) / maxOi) ** feeExponent