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”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“”Overview
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
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โš–๏ธLegal and Regulations
๐Ÿ“Terms of Use
๐Ÿ“Disclaimer
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๐Ÿ“Competition Terms and Conditions
๐Ÿ“šGlossary
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2min

Cross-Collateral Deposits

Drift supports cross-collateral token deposits, specifically: USDC, SOL, BTC and ETH. These can be used for margin within the Perpetuals Markets.

By default, markets are quoted in USD and P&L is settled in USDC. All tokens deposited within the protocol can earn yield via Borrow/Lend. Until unrealised P&L is settled into your Balances, it will not earn (if profits) or be charged (if losses) the deposit/borrow interest respectively.

Below is a table of assets supported by Drift Protocol.

Each asset counts towards margin for derivatives trading and has a weight applied to account for their respective volatilities.

For instance, depositing USDC gives users 1:1 margin for derivatives trading, but depositing SOL (๏ปฟ80% asset weight) means that 80% of the value of your SOL at the opening of your position will be available as margin for perpetuals trading.

Margin Parameters๏ปฟ

Asset

Initial Asset Weight

Maintenance Asset Weight

Initial Liability Weight

Maintenance Liability Weight

IMF Factor

USDC

100%

100%

100%

100%

0

SOL

80%

90%

120%

110%

0.003

๏ปฟ

The IMF Factor acts as a discount on account size:

Initial Asset Weight on 2000 SOL Collateral (using above) would be:

weight = minย (.80,ย 1.1ย /ย [ 1 + (0.003ย *ย sqrt(2000)]ย )

= min(.80, ~.96987) = .80

An asset's liability weight can be converted into an LTV ratio using: ltv = 1 / liability weight

Asset

Initial LTV

Max LTV

SOL

83.3%

90.9%

๏ปฟ

Updated 07 Jan 2023
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