Drift Protocol
Drift Protocol is a decentralized derivatives exchange built on Solana. It enables perpetual futures trading with leverage, transparent orderbooks, and near-instant settlement thanks to Solana’s high-performance blockchain.
What is Drift Protocol?
Drift Protocol is a decentralized trading platform designed for perpetual swaps and advanced derivatives. It uses a fully on-chain orderbook and liquidity mechanisms to deliver fast, low-cost, and transparent trading for global users.
Core Features
- Perpetual futures with leverage (commonly up to 20x).
- On-chain orderbook with transparent settlement.
- Cross-margin and isolated margin accounts.
- High-speed trading enabled by Solana’s architecture.
- Permissionless, non-custodial access via wallet connection.
Benefits
- Fast execution with low fees compared to Ethereum-based DEXs.
- Fully transparent and auditable orderbook data on-chain.
- Advanced tools for professional traders (margin, risk engine, liquidation management).
- Open and permissionless — available globally without intermediaries.
Risks
- Leverage increases risk of liquidation and capital loss.
- Smart contract and protocol risks typical of DeFi projects.
- Relies on Solana’s network uptime and performance.
- Regulatory availability may vary by region.
Fees
| Fee Type | Details |
|---|---|
| Trading Fees | Low taker/maker fees compared to centralized and Ethereum DEXs. |
| Funding Rates | Dynamic between longs and shorts to balance perpetual pricing. |
| Network Costs | Minimal due to Solana’s low gas fees. |
FAQs
Is Drift Protocol decentralized?
Yes, it operates fully on-chain on Solana, with an orderbook and settlement system that is transparent and non-custodial.
What leverage does Drift support?
Drift Protocol commonly offers leverage up to 20x on perpetual futures, though limits vary per market.
How do I start trading?
Connect a Solana wallet (e.g., Phantom), deposit assets, and trade perpetuals directly through the Drift interface.