Innovation Lab: @Backpack How to Improve Capital Efficiency 🎒 1. Why is capital efficiency core? • High capital efficiency means that a single amount of capital can be utilized multiple times, maximizing returns. • Low capital efficiency leads to the feeling that "money is locked up," requiring one to rob Peter to pay Paul. 2. Global Margin Account Spot accounts, contract accounts, wealth management accounts, leverage accounts... capital cannot be shared and must be frequently transferred. Backpack adopts a global margin account model: • Users' spot, contract, and lending assets share the same margin pool. • A single collateral can cover multiple trading needs simultaneously. • Capital utilization rate is significantly improved. For example 🌰: If you have 1,000 USDC in your account, with Backpack, you can use it to: • Participate in lending (earn interest) • Open contracts simultaneously (as margin) • Even collateralize it into a stable yield pool. This is equivalent to reusing the same amount of money in multiple scenarios, something traditional CEXs rarely dare to do. 3. Auto-lending: Keep Your Capital Active Backpack's idea is: once enabled, idle assets automatically enter the lending pool and continue to be used as margin without manual operation. • If you have a portion of USDC in your account that is idle, it will automatically be lent to users in need of borrowing. • Interest earnings will be credited to your balance in real-time. • Once you need to use this capital to open a position, it will automatically redeem without manual operation. Capital will never be idle. 4. Sub-account Mechanism: Isolation of Risks and Strategies Professional traders often have multiple strategies and do not want them to interfere with each other. Backpack provides a sub-account mechanism: • You can allocate margin across different sub-accounts. • Profits and losses, as well as liquidation risks, are completely isolated between different strategies. • Convenient for arbitrage, hedging, and multi-strategy parallel operations. 5. Stable Yield Products: Experiment with Dollar-Equivalent Pools In May 2025, Backpack launched a new wealth management product: Dollar-Equivalent Pool. The logic is to split USDC earnings into two parts: 1. U.S. Treasury yield 2. Platform lending rates. This hybrid mechanism allows for an annual percentage yield (APY) of 5.56%, far exceeding traditional banks and some stablecoin products. The innovations here include: • Composability — combining traditional finance with on-chain finance. • Transparency — clear sources of earnings, not "black box finance." • Security — collateral and margin systems safeguard and reduce risks. Fock it.