brypto

multi-collateral on a perps protocol is one of those things that's seemingly very simple, but actually very tricky to implement if you want to keep it both decentralized and efficient. What currently exists:

Drift style multi-collateral:
Deposit usdc against alternative collateral types

PROs: 
- Simple implementation
CONs: 
- You're capital efficiency is capped by the LTV on the lending market
- Rebalancing or swapping collateral becomes trickier
- fee's on funding rates + lending rates
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Aevo style multi-collateral:
What I like to call just-in-time multi collateral. Users are forced to maintain a usdc balance, whenever this balance goes below a certain threshold aevo swaps a multi-collateral asset into usdc to top up.

PROs:
- higher capital efficiency
CONs:
- entirely centralized
- not really true multi-collateral - a user could deposit 1 BTC but overtime this continuously gets slowly swapped to usdc

- Tricky balance between decentralization and efficiency