Spot FAQ
3min
Why is Drift's spot market better for takers (versus alternatives)?
Takers enter a JIT auction, which can offer price improvement, and otherwise can fill via an external program. (e.g. Serum).
Takers can also utilise special order types such as oracle-offset limit orders, which appropriately can cap fills using slippage tolerance versus the oracle provider's fair value. This allows ordinary takers on a UI to control swapping at the fairest price, even without access to advanced infrastructure / bots.
Better for makers (versus alternatives)?
Market makers can provide liquidity to an ongoing JIT auction, removing latency-based adverse selection.
Additionally, as an active market maker, all resting orders earn interest within the protocol's borrow / lend.
- For example: on a USDT-USDC spot market one can offer deep liquidity without compromising on lending interest
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Updated 21 Feb 2023
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