Crypto trading should be transparent. But that’s not always the case. Some centralized exchanges have obscured trading activity to front run their users’ trades. Not cool. Fortunately, Solana-based decentralized exchange Drift Protocol solves this. It allows you to trade crypto directly with other users and executes all transactions on chain. For everyone to see.
What is Drift Protocol?
Drift Protocol is a decentralized exchange (DEX) on Solana. Rather than a centralized entity (such as Coinbase or Kraken) executing trades, Drift’s protocol does. Therefore, users maintain custody of their crypto and trade with each other in a peer-to-peer manner. To ensure capital efficiency and trader protection, Drift Protocol uses cross-margin trading accounts and an automated market maker that’s so good it makes you say… DAYUMM.
Okay, that’s not exactly what it is. Drift Protocol’s decentralized automated market maker (DAMM) is like a virtual automated market maker (vAMM) but it uses novel mechanisms to recalibrate liquidity in a trading pool based on demand. This enables more flexibility which reduces slippage and increases capital efficiency.
Thanks to its DAMM, you can cross-margin trade with up to 10x leverage—which allows you to take multiple positions using a single pool of collateral. By depositing collateral, you can trade perpetual swaps for SOL, BTC, ETH, BONK, PEPE, and others. You can also swap spot tokens, borrow, lend, and stake.
Behind Drift Protocol is a team of four co-founders led by Cindy Leow. Cindy joined crypto in 2016 to arbitrage the price difference in Bitcoin between the United States and Korea. After that, she launched a digital asset management company and worked with decentralized derivatives projects on Ethereum. Then she came to Solana. Why? Because of its user-friendly experience, fast and low-cost transactions, and robust ecosystem.
Why use Drift Protocol?
Trade crypto on-chain with leverage
Want more than basic crypto trading? Drift Protocol enables a bunch of advanced trading options. You can swap perps and spot trade with up to 10x leverage and long and short assets such as SOL, BTC, ETH, USDC, XRP, BONK, and more.
Earn automatic yield on your deposits
When you deposit assets on Drift Protocol, you earn automatic yield. Why? Because you’re providing much-needed liquidity to the market. And the best part is that your interest vests and compounds. So you gain yield on yield.
“Super stake” your crypto in 1 click
Got an appetite for risk? You can leverage your SOL in pursuit of mouthwatering returns. Just push a button to initiate leveraged staking with annual yields up to 10%. But as always, be sure to assess the risks beforehand, tradooor.
How to get started with Drift Protocol?
Okay, it’s time to stop talking and start drifting. Our recommendation? Earn yield.
Here’s how...
Make sure you have one SOL in your Phantom wallet
If you don’t, you can buy it via MoonPay, Coinbase Pay, or Robinhood Connect in Phantom.
- Go to app.drift.trade
- Connect your wallet
- First, you’ll need to accept the terms
- Deposit your one SOL
That’s it. You’re now earning yield on Drift Protocol.
