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

Market Maker Participation

For more information on incentive programs for Market Makers, see ๏ปฟMaker Rebate Fees๏ปฟ

Introduction

Any user can participate as a Market Maker on the platform. Market Makers can provide liquidity through either:

  1. Just-in-Time Liquidity (see ๏ปฟJust-In-Time (JIT) Auctions); or
  2. Post-Only Orders on the decentralised orderbook (see ๏ปฟKeepers & Decentralised Orderbook).

Just-in-Time Liquidity

Makers can participate in the JIT auction and provide just-in-time liquidity as Taker flow comes in.

This will provide Makers with an opportunity to see retail flow five seconds before it hits the market.

Market Makers can participate in the JIT system by running a JIT Maker Bot. For more information, check out ๏ปฟTutorial: JIT Maker Bot๏ปฟ

For more information on the Just-in-Time Liquidity system, check out ๏ปฟJust-In-Time (JIT) Auctions๏ปฟ

Decentralised Orderbook

Makers can also provide liquidity to Drift's decentralised orderbook by quoting via the UI or programmatically through the ๏ปฟSDK Documentation

(a) providing liquidity via the UI

Placing 'Post-Only' limit orders via Drift's UI qualifies the order as a maker order.

This order won't be executed against the AMM or go through the JIT. It will sit in the decentralised orderbook until a taker for that price comes along.

The 'POST' flag is toggled on here.
The 'POST' flag is toggled on here.
๏ปฟ

(b) programmatic market making with a floating maker bot

Drift has an open-sourced bot that programmatically quotes bids and asks around the oracle price. These quotes are automatically updated as the oracle price moves.

In practice, the floating maker bot will quote above and below the oracle to provide liquidity around the oracle price. Makers that run the bot will be able to collect the spread as the price moves.

Drift currently runs this bot, along with some additional risk parameters, on the platform for-profit. We've open-sourced the build here for any user to run something similar.

Floating Maker Bot - Github Link: https://github.com/drift-labs/keeper-bots-v2/blob/master/src/bots/floatingMaker.ts๏ปฟ

๏ปฟ

Updated 07 Mar 2023
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Maker Rebate Fees
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TABLE OF CONTENTS
Introduction
Just-in-Time Liquidity
Decentralised Orderbook
(a) providing liquidity via the UI
(b) programmatic market making with a floating maker bot