Drift supports cross-collateral token deposits, specifically: USDC, SOL, BTC and ETH. These can be used for margin within the Perpetuals Markets.
By default, markets are quoted in USD and P&L is settled in USDC. All tokens deposited within the protocol can earn yield via Borrow/Lend. Until unrealised P&L is settled into your Balances, it will not earn (if profits) or be charged (if losses) the deposit/borrow interest respectively.
Below is a table of assets supported by Drift Protocol.
Each asset counts towards margin for derivatives trading and has a weight applied to account for their respective volatilities.
For instance, depositing USDC gives users 1:1 margin for derivatives trading, but depositing SOL (80% asset weight) means that 80% of the value of your SOL at the opening of your position will be available as margin for perpetuals trading.
[Potential] Margin Parameters
Initial Asset Weight
Maintenance Asset Weight
Initial Liability Weight
Maintenance Liability Weight
The IMF Factor acts as a discount on account size:
Initial Asset Weight on 2000 SOL Collateral (using above) would be:
weight = min (.80, 1.1 / [ 1 + (0.003 * sqrt(2000)] )
= min(.80, ~.96987) = .80