What is Quanto (QTO)?

By CMC AI
28 September 2025 02:11AM (UTC+0)

TLDR

Quanto (QTO) is a Solana-based derivatives exchange that reimagines margin trading by letting users leverage diverse crypto holdings—from Bitcoin to memecoins—as collateral through its native QTO token.

  1. Flexible Collateral System – Trade perpetual contracts using any crypto asset as margin while QTO manages settlements and liquidations

  2. Deflationary Tokenomics – Burns 70% of fees, uses liquidations to buy back QTO, and rewards liquidity providers with 30% of fees

  3. Social Trading Hub – Features like Alpha Feed let users share/copy trades, while Battle Vaults enable betting on influencers’ strategies

Deep Dive

1. Purpose & Value Proposition

Quanto targets traders frustrated by rigid collateral rules on traditional exchanges. By allowing any asset (including volatile memecoins) as margin, it unlocks trapped portfolio value. All profits, losses, and liquidations flow through QTO, creating a closed-loop system where platform activity directly strengthens the token’s ecosystem (docs).

2. Technology & Architecture

Built on Solana for speed and low fees, Quanto uses quanto contracts—a derivative type that lets traders open positions denominated in QTO while using other assets as collateral. This cross-margining approach eliminates the need to manually swap assets before trading. The platform also integrates Hyperliquid for deep liquidity in major perpetual markets (blog).

3. Tokenomics & Governance

QTO’s 1 billion supply is managed through:
- Deflation: 70% fee burn + buybacks during liquidations
- Incentives: 30% fees to liquidity stakers (QLP pool)
- Transparency: Public wallets for burns, team vesting (20% with 1-year cliff), and reserves (20% for emergencies) (tokenomics)

Conclusion

Quanto positions QTO as the nexus of a self-reinforcing trading ecosystem—where every liquidation and fee payment tightens token supply while rewarding participation. As Solana’s perp-dex competition intensifies, can Quanto’s “anything as collateral” model attract enough volume to sustain its deflationary mechanics?

CMC AI can make mistakes. Not financial advice.