Drift Protocol v2

⌘K
👾Welcome to Drift Protocol
📺Drift DEX
👋Getting Started
📈Perpetual Futures
📊Spot Margin Trading
🏦Borrow & Lend
🏛️Staking
🏪Market Makers
🔬Technical Explanations
📏Accounting and Settlement
➗Borrow Interest Rate
📜Delisting Process
⛲Drift AMM
🏃Just-In-Time (JIT) Auctions
📚Keepers & Decentralised Orderbook
☠️Liquidators
💧Liquidity Providers (LPs)
📋Protocol Guard Rails
📝Risks
🎟️Drift Draw
📝Parameters
🖥️Developer Resources
📔Program/Vault Addresses
⌨️SDK Documentation
⌨️Tutorial: Bots
⚠️Troubleshooting
🛠️Keeper Bots
🛠️Trading Bots
⌨️Historical Data (v1)
⌨️API
🛡️Security
🛡️Audits
🛡️Bug Bounty
⚖️Legal and Regulations
📝Terms of Use
📝Disclaimer
📝Privacy Policy
📝Competition Terms and Conditions
📚Glossary
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Welcome to Drift Protocol

4min
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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").

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 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

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Getting Started

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Just-In-Time (JIT) Auctions

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Tutorial: Arbitrage Bot

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Keepers & Decentralised Orderbook



Updated 15 Nov 2023
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Understanding Drift Protocol
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TABLE OF CONTENTS
What is Drift?
Why use Drift?
Quick Links
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