Kraken now Supports Cardano (ADA) as Collateral
Cryptocurrency exchange Kraken has announced that Cardano (ADA) is now supported as collateral on its futures platform.
It also supports cryptocurrencies such as Chainlink (LINK), Polkadot (DOT), Decentraland (MANA), and others.
As the name suggests, the first type allows users to use only the underlying cryptocurrency of a certain pair as collateral.
The second type allows traders to deposit multiple cryptocurrencies as collateral, which means that they are not limited to the base currency.
You can look up all assets supported as collateral on the platform here.
Cardano as collateral
It is worth noting that the ADA token has a 10% reduction in the margin value of the collateral.
For example, if a person’s balance is 1,000 ADA tokens, 900 ADA tokens are counted as collateral that can be used to secure positions.
The amount of the discount varies for different cryptocurrencies: from 0% for Bitcoin (BTC) to 50% for Avalanche (AVAX) and Tezos (XTZ).