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Getting Started

Welcome to the Rate Swap Protocol! This guide will help you understand how to start trading interest rate swaps on Solana.

What You'll Need

  1. Solana Wallet - A compatible wallet (Phantom, Solflare, etc.)
  2. Collateral - Supported collateral assets (e.g., USDC)
  3. Basic Understanding - Familiarity with interest rate swaps (see Understanding Swaps)

Quick Start

Step 1: Connect Your Wallet

Connect your Solana wallet to the Rate Swap Protocol interface. Ensure you're on the correct network (mainnet/devnet).

Step 2: Deposit Collateral

Before trading, you need to deposit collateral to your margin account:

  1. Navigate to the Margin section
  2. Select your collateral type (e.g., USDC)
  3. Enter the amount to deposit
  4. Confirm the transaction

Step 3: Open a Position

To open an interest rate swap position:

  1. Select a market (defined by rate index, asset, and maturity)
  2. Choose your position:
    • Pay Fixed / Receive Floating: Profit when rates rise (positive notional)
    • Receive Fixed / Pay Floating: Profit when rates fall (negative notional)
  3. Enter your notional amount
  4. Review the margin requirements
  5. Execute the swap

Step 4: Monitor Your Position

Track your position's performance:

  • Mark-to-Market (MTM): Real-time unrealized P&L
  • Funding Settlement: Periodic funding index updates
  • Health Factor: Position health relative to margin requirements

Step 5: Close or Manage Position

You can:

  • Close: Execute an opposite swap to exit
  • Add Collateral: Improve health factor
  • Partial Close: Reduce position size

Important Concepts

Margin Requirements

  • Initial Margin: Required to open/increase position
  • Maintenance Margin: Minimum to keep position open
  • Liquidation: Position closed if health falls below maintenance

Position Signs

  • notional > 0: Pay fixed, receive floating (long rates)
  • notional < 0: Receive fixed, pay floating (short rates)

Next Steps

Getting Help

Released under the ISC License.