Quanto
Quanto Trading System on BounceBit
Quanto introduces cross-currency perpetual contracts to the BounceBit network, enabling traders to maintain positions in one asset while posting collateral in another. This system removes the traditional barriers between different asset classes and blockchains in derivatives trading.
Core Features
The system operates as a decentralized perpetual contract platform where positions have no expiration date. Traders can maintain long or short positions indefinitely, provided they meet margin requirements. What distinguishes Quanto is its ability to separate the trading asset from the collateral asset - users can trade BTC/USD markets while posting ETH, BB, or other supported tokens as margin.
Implementation
On BounceBit, Quanto contracts bridge the gap between different asset markets through fixed-rate settlement. For example, a trader can:
Open a BTC/USD position
Post BB tokens as collateral
Settle profits and losses in BB
Maintain exposure to BTC price movements
This architecture effectively removes currency boundaries in derivatives trading while keeping settlement within the BounceBit ecosystem. The system's quanto characteristic enables traders to access any supported market regardless of their held assets, significantly expanding trading opportunities.
Guide:
QuantoFee 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) ** feeExponentLast updated