Drift Protocol v2

โŒ˜K
๐Ÿ‘พWelcome to Drift Protocol
๐ŸงฎDrift DEX
๐Ÿ‘‹Getting Started
๐Ÿ“ˆPerpetual Futures
๐Ÿ“ŠSpot Margin Trading
๐ŸฆBorrow & Lend
๐Ÿ›๏ธStaking
๐ŸชMarket Makers
๐Ÿ”ฌTechnical Explanations
๐Ÿ“Accounting and Settlement
โž—Borrow Interest Rate
๐Ÿ“œDelisting Process
โ›ฒDrift AMM
๐ŸƒJust-In-Time (JIT) Auctions
๐Ÿ“šKeepers & Decentralised Orderbook
โ˜ ๏ธLiquidators
๐Ÿ’งLiquidity Providers (LPs)
๐Ÿ“‹Protocol Guard Rails
๐Ÿ“Risks
๐Ÿ–ฅ๏ธDeveloper Resources
๐Ÿ“”Program/Vault Addresses
โŒจ๏ธSDK Documentation
โŒจ๏ธTutorial: Bots
โš ๏ธTroubleshooting
๐Ÿ› ๏ธKeeper Bots
๐Ÿ› ๏ธTrading Bots
โŒจ๏ธHistorical Data (v1)
โŒจ๏ธAPI
๐Ÿ›ก๏ธSecurity
๐Ÿ›ก๏ธAudits
๐Ÿ›ก๏ธBug Bounty
โš–๏ธLegal and Regulations
๐Ÿ“Terms of Use
๐Ÿ“Disclaimer
๐Ÿ“Privacy Policy
๐Ÿ“Competition Terms and Conditions
๐Ÿ“šGlossary
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6min

Welcome to Drift Protocol

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What is Drift?

Drift Protocol is an open-sourced, decentralised exchange built on the Solana blockchain, enabling transparent and non-custodial trading on cryptocurrencies.

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By depositing collateral into Drift Protocol, users can:

  • trade perpetual swaps with up to 10x leverage,
  • borrow or lend at variable rate yields,
  • stake / provide liquidity,
  • swap spot tokens

Why use Drift?

The full suite of DeFi tools within the protocol are powered by Drift's robust cross-margined risk engine, designed to give traders a balance of both capital efficiency and protection (more details of the cross-margin engine design are detailed throughout "Technical Explanations").๏ปฟ

Under the cross-margin engine, each tool extends functionality within the protocol without over-extending risk. For instance:

  • the borrow / lend markets also enable cross-collateral on perpetual futures and more efficient margin trading on spot assets
  • every deposited token is eligible for yield on deposits from borrows and provides margin for perpetual swaps
  • borrowers are only able eligible to borrow from depositors in an over-collateralised fashion while passing multiple safety measures

The protocol's orderbook, liquidity, and liquidation layer is powered by a validator-like Keeper Network. Keepers are a network of agents and market-makers incentivized to provide the best order execution (i.e. Just-In-Time (JIT) liquidity, order matching, etc.) to traders on Drift. The Keepers can route orders throughout the multi-sourced liquidity mechanisms that are designed to effectively scale and offer competitive pricing even with larger order sizes.

Quick Links

๏ปฟ๏ปฟGetting Started๏ปฟ

๏ปฟ๏ปฟJust-In-Time (JIT) Auctions

๏ปฟ๏ปฟTutorial: Arbitrage Bot๏ปฟ

๏ปฟ๏ปฟKeepers & Decentralised Orderbook๏ปฟ

๏ปฟ

Updated 21 Feb 2023
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Understanding Drift Protocol
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TABLE OF CONTENTS
What is Drift?
Why use Drift?
Quick Links