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
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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4min

What is Borrow & Lend?

Drift Protocol is also a decentralised money markets protocol that supports the borrowing and lending of assets.

As a decentralised money markets protocol, you can:

  • ๏ปฟdeposit assets into Drift Protocol and earn yield; or๏ปฟ
  • borrow assets deposited by other Lenders at a variable interest rate.

Lenders provide liquidity to the market to earn yield on their assets, while borrowers are able to borrow from available liquidity pools in an overcollateralised fashion. Any interest earned from lending is vested immediately and automatically compounds.

๏ปฟ

Example 1 - Borrowing:

  • You have 100 SOL worth $10,000 USD. You want access to USDC however you don't want to sell your SOL.

What can you do?

You can deposit your SOL into app.drift.trade and borrow up to 50% of the value you deposited in USDC. For 100 SOL worth $10,000 USD, you can borrow up to $5,000 USDC.

The borrowed amount can then be used to do anything, including to get leveraged exposure to particular assets via spot trading.

Example 2 - Lending:

  • You have 100 SOL worth $10,000 USD. You have conviction in SOL and you're not going to sell any time soon but you also don't want it to sit idly doing nothing.

What can you do?

You can deposit your SOL into app.drift.trade. The SOL you deposited can be lent out to Borrowers in protocol. In return for lending out your assets, you'll earn a variable Deposit APR.

More information on lending APY will be released soon.

Updated 01 Dec 2022
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