Phantom wallet introduces on-chain perpetual futures trading with 40x leverage

The popular Solana wallet Phantom has just announced a major update for its users with the launch of on-chain perpetual futures trading, offering up to 40x leverage.

This new feature could completely change how people trade crypto derivatives by making them simpler and more accessible.

Perpetual futures now see more than $100 billion in trading volume daily. That said, most of the platforms that offer these products have been centralized exchanges, which are overloaded with complex charts, order books, and technical tools, which can be off-putting for non-professional users.

Phantom is trying to democratize this kind of trading. Instead of forcing users to shift assets between platforms or learn about trading abstractions, Phantom allows them to trade perpetual futures without ever leaving their wallets. They also simplified the entire process, deposit with SOL, and let the wallet swap to USDC automatically. From the next screen, they select a market and pick their desired leverage.

No complex user interfaces or any financial jargon. The platform’s experience is sleek and mobile-friendly so that users can open leveraged positions as effortlessly as they handle NFTs or make a token swap.

No other Crypto wallet goes this simple. Phantom can onboard millions of new users locked out of the derivatives market by building this high-level trading functionality into its user interface.

Phantom taps Hyperliquid to bring fast, gas-free perpetual to everyday traders

Phantom’s latest perpetual futures have been built on Hyperliquid, a rapidly scaling Layer 2 decentralized trade protocol with high-speed infrastructure and zero gas fees. Thanks to this integration, Phantom users can now trade across over 100 diverse markets in the same app they already use to manage their tokens and NFTs.

They cover all major markets, including BTC, ETH, and SOL, as well as emerging altcoins such as AVAX, ARB, and LINK. The system even holds high-volatility meme coins like Dogecoin, Pepe, and Bonk, leaving traders with plenty of choice if they want to take a risk on high-risk speculation.

So, Hyperliquid deals with the nitty and gritty, like order execution and risk management, and Phantom is the beautiful and user-friendly interface. The result is a complete trading tool that can get anyone hands-on with advanced trading tools.

Phantom suggested this is just the start in a blog post discussing the news. The team hopes to expand the feature set, adding more educational tools and social features to help make derivatives trading more accessible and engaging for beginners.

Phantom’s Futures feature sparks debate on risk and accessibility

Phantom’s innovation is well-received among the crypto community but is also a cause for concern.

Perpetual futures are high-risk financial products. They enable traders to raise the stakes but also the risk of losses. A bad trade at 40x leverage may end quickly and suddenly, liquidating, especially if markets are turbulent.

Professional traders have tools for managing risk, stopping losses, hedge strategies, and complex data analyses that protect them. Casual users often don’t.

By putting derivatives just a few taps away, Phantom might also bring these risks to a new generation of unprepared users. Its critics say that ease of access could encourage reckless trading, especially among younger or novice investors.

The Phantom team still stresses responsible use. The platform features warnings, educational pop-ups, and even an explicit disclaimer before a user can open a futures position. The feature is also opt-in, so you must consent to the risks before taking advantage of it.

And Phantom’s ambitious move amounts to a litmus test for whether retailers will adopt crypto derivatives. It’s a sign that wallets can’t simply be repositories anymore; they are evolving into full-blown financial ecosystems.

If successful, this move could change the purpose of self-custody wallets, transforming them into potential primary investments and eventually, trading and earning platforms.

In the wrong hands, it could leave a generation of over-leveraged, under-informed users tangled in the volatility of crypto markets.

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