Drift

Liquidity Aggregation

Drift aggregates liquidity from multiple DEXs within the Solana ecosystem, including Serum and Raydium. This ensures that users receive the best possible prices and minimal slippage for their trades.

Cross-Margining and Risk Management

The platform employs a sophisticated cross-margining system that enhances capital efficiency while protecting traders’ positions. This system allows users to use deposited assets as collateral for multiple types of trades, thereby maximizing their capital usage.

Usage and Applications

Drift serves a wide range of users, from individual traders to institutional participants. It is particularly popular for its advanced trading features and deep liquidity, making it a go-to platform for high-volume traders. The platform also offers tools for yield generation, such as lending and staking through its insurance fund and market-making vaults.

DRIFT Governance Token

Overview

The DRIFT token is central to the platform’s governance, allowing holders to vote on key protocol decisions and participate in shaping Drift’s future. The token aims to decentralize control and foster community engagement.

Tokenomics

There are a total of 1 billion DRIFT tokens, distributed over five years. The allocation is as follows:

• Community (53%): This includes 43% for ecosystem development and trading rewards, and 10% for the initial launch airdrop.
• Protocol Development (25%): Allocated to current and future contributors, with an 18-month lock-up followed by an 18-month vesting period.
• Strategic Participants (22%): Reserved for key partners and advisors who have supported Drift’s growth.

Governance Structure

The Drift DAO oversees the governance process, divided into three branches:

• Realms DAO: Focuses on protocol development and electing the Security Council.
• Security Council: Manages risk parameters and approves protocol upgrades.
• Futarchy DAO: Funds ecosystem projects and grants based on market-driven decision-making.

Notable Events

Series A Funding

In May 2023, Drift announced a $23.5 million Series A funding round led by Polychain Capital, bringing total funding to $27.3 million. This funding aims to expand Drift’s product lines and enhance its infrastructure, with the goal of becoming the largest perpetuals venue in crypto.

Achievements and Metrics

Since its inception, Drift has achieved significant milestones, including:

• Volumes: Over $400 million in weekly trading volume and $34 billion in cumulative volume.
• User Base: More than 19,000 active traders.
• Liquidity: Deepest derivatives liquidity on Solana with over $20 million in orderbook depth.