Give the contract a new space for imagination, can Backpack's contract innovation attract the attention of traders?

There has been a long-standing joke in the crypto community that goes, "If you don't believe in a project, you can short it." This somewhat ironic mantra precisely reflects many people's skeptical attitude towards high-market-cap projects. In fact, if you've been paying attention to the recent market trends, you'll notice that many savvy traders have seized the opportunity presented by the cooling off of Venture Capital (VC) coins and MEME coins. Through precise shorting, they have earned significant profits. However, what's regrettable is that even after identifying such obvious trading opportunities, many people's capital efficiency remains low.

It begs the question: Is it possible for traders to utilize leverage and borrowing tools effortlessly without juggling multiple accounts? Is there a platform that can make every penny of funds flow like water, naturally and continuously accruing interest?

Backpack Exchange has stepped forward, treating every user as a professional trader and giving each user the respect they deserve. Compared to platforms like Binance, OKX, and Bybit with fragmented fund management models, Backpack is more like an "original unified account" — spot, futures, and lending are all integrated, allowing traders to concentrate their efforts and focus on real market opportunities. This approach may sound bold, but in reality, it is these attempts to break the norm that bring about an "efficiency revolution."

In simple terms, Backpack turns a trader's contract position into a liquid asset pool, rather than a "sunk cost" locked in an account. With its ace in the hole of maximizing fund efficiency, Backpack has enabled Centralized Exchanges (CEX) to successfully reach the "Next Level." Next, we will delve into its features in detail.

Full Margin + Multi-Asset Collateral: Allowing Funds to Flow Freely and Be Used On-Demand

Let's first talk about fund efficiency. Many traditional centralized exchange platforms have funds divided into different accounts, with some even separated into "margin accounts," "spot accounts," "investment accounts," and other systems, making it confusing for traders. If you want to transfer funds from a spot account to a contract account, the steps involved might make you question your life choices. However, Backpack directly adopts the concept of "full margin + multi-asset collateral," giving off a sense of "integration and granularity."

At Backpack, the various assets you deposit, such as BTC, ETH, USDC, are automatically included in a unified collateral pool, accessible whenever you open a position, borrow, or engage in spot trading. You no longer have to worry about insufficient balances in a particular account or frantically searching for funds to top up margin. Imagine a large sum of funds lying in a "pool," ready to be tapped into whenever needed, just like turning on a faucet to get water. This not only speeds up fund turnover but also effectively prevents embarrassing situations such as liquidation due to delayed transfers or missing out on market opportunities.

Interest-Bearing Contract: Putting Unrealized Profits to Work, No More Idle

When it comes to Backpack's unique advantage, the interest-bearing contract has to be mentioned. Many traders have been frustrated: after opening long or short positions, although there is a substantial unrealized profit, this profit can only quietly "lie" there, watching the numbers fluctuate, unable to generate new income. It's like planting a tree on a farm, the fruit is not yet picked, but you can't take it to exchange for money or reinvest.

At Backpack, unrealized profits are far more than just numbers on the account. Even if your position has not been closed, these unrealized profits can automatically enter the lending market to earn interest, just like the fruit you planted on the farm can help you earn more fruit while still on the branch. In this way, even if you are still waiting for the market to further develop, you can enjoy some interest benefits in advance. For arbitrageurs, market makers, or quantitative traders who are extremely sensitive to capital efficiency, this is simply a significant advantage.

Auto Lend: One-Click Activation, Let Idle Funds "Work" Themselves

It's a bit of a waste if idle funds other than contracts can only lie dormant in the account. Traditional trading platforms do have some lending or financial products, but the usual operation steps are cumbersome, and you even have to switch back and forth between different pages and accounts, which is time-consuming and error-prone.

Backpack provides a more concise and worry-free solution through the Auto Lend feature: as long as you have assets in your account, the system will automatically lend them for you. Once the borrower repays, your interest will also be instantly rolled into your available balance. Of course, for some more meticulous traders, they may want to adjust the interest rate or collateral rate themselves, but at least Backpack provides a "lazy" option, allowing those who don't want to bother managing idle funds to securely earn interest.

Sub-Account System: Flexible Sub-Wallets, Multiple Strategies in Parallel, Essential Tool for Professional Traders

If you have ever used FTX's sub-account feature or experienced multi-account mode at some traditional brokerage firms, you must know how convenient sub-accounts can be for multiple strategies and team collaboration. In most trading platforms, to run different strategies, you have to manually transfer funds and calculate margins constantly. If the back and forth is too cumbersome, you might as well stack all the strategies in the same account. The result is that any fluctuation leads to all positions being liquidated, which can be described as a nightmare.

The Backpack has revived the concept of "sub-account, sub-strategy, sub-risk," allowing sub-accounts to be easily created under the same main account. Between multiple sub-accounts, funds and profits and losses are completely isolated, each managing its own without affecting others. However, when transfers are needed, it only takes a few easy clicks to get it done. If you want to engage in market-making, you can open a sub-account; if you are preparing for hedging or high-frequency trading, you can open a separate one, everything is well organized. If your team is finely divided and needs different people to manage different strategies, then it's even more seamless.

Automatic Real-time P&L Settlement: Efficiently Convert Unrealized Gains into "Real Money"

In futures trading, the difference between unrealized profit and loss and realized profit and loss is sometimes a mixed blessing. The joy comes from watching the numbers soar, which can lift your mood, but the frustration comes from the fact that most of the time, these numbers cannot be immediately converted into "ammunition" for further positions. Especially when you are not using the U.S. dollar or a stablecoin, if you want to take your unrealized gains to increase your position or perform other operations, you will have to go through a series of borrowing or settlement processes.

Backpack's Auto-Realize feature breaks through this "threshold." It can convert unrealized gains into "available balance" in a certain period, and this money can be used to increase your position if you want or to lend at interest. And for those holding only non-dollar assets, Auto-Realize can even help you automatically borrow stablecoins to lock in some profits, preventing a significant fluctuation from causing a substantial loss of profit. In short, it keeps unrealized gains in a "liquid" state, ready to be used for the next opportunity.

Robust Compliance and Security: Providing a "Peace of Mind" Pill for Large Capital Users

After the FTX incident, security became the top priority. To allow traders' funds to flow securely on the platform, compliance and security are naturally indispensable. Backpack has obtained licenses in multiple locations such as the United States, Dubai, Australia, the European Union, demonstrating its efforts to maintain prudent operations globally. For professional traders with large capital investments, this is a psychological reassurance.

In addition, Backpack has adopted a full hedging mechanism, reducing the space for manipulation or "needle insertion." Many traders may have experienced being "mysteriously liquidated at midnight," a feeling that can only be described as heartbreak. Systematic hedging can greatly reduce this risk, allowing us to focus more on judging market trends rather than anxiously watching for abnormal market depth.

Dominate the Market with Capital Efficiency

Looking back, what makes Backpack so appealing is its strong focus on "capital efficiency." With features such as cross-margin trading, multi-asset collateral, interest-bearing contracts, automatic lending, a sub-account system, and automatic profit and loss settlement, Backpack fully maximizes every penny in a trader's account. In contrast, traditional exchanges like Binance, OKX, and Bybit still exhibit a significant disconnect in these aspects, often locking funds in different account systems, hindering flexible usage. The concept of "earning interest on unrealized gains" is also nonexistent.

The cryptocurrency industry has been spiraling inward, whether in terms of speed or depth of the spiral, liquidity flow, or user base. In the end, what traders truly care about is: Can their funds flow like water without compromising security and compliance? Can they earn interest on loans, make use of unrealized gains, and freely allocate their entire account at any time and place?

Backpack provides a clear answer: yes. Backpack has reshaped the logic of futures trading, allowing traders' funds to flow freely like water, where every asset and every penny can play a role. If you are still struggling on a traditional trading platform, perhaps it's time to switch battlegrounds.

Maybe you have missed entry opportunities due to transfer delays on traditional exchanges or are struggling with managing multiple strategies. Perhaps you are unsure whether to partially close a profitable position to realize gains or are worried about missing out on potential future gains. However, on Backpack, these issues can be cleverly resolved within the system itself. Professional traders no longer need to waste energy on trivial account management but can instead focus on capturing the next market opportunity.