Drift Protocol and Drift Token Complete Guide

BearMarketSage

2026-01-24 01:26:52

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Source: BTCHaber Original Title: What is Drift coin? Original Link: https://www.btchaber.com/drift-coin-nedir/

What is Drift?

The Drift token is the native cryptocurrency of Drift Protocol. Drift Protocol is a decentralized exchange (DEX) built on the Solana blockchain, allowing users to trade cryptocurrencies directly from their wallets and engage in lending and borrowing activities.

How It Works

Hybrid Liquidity Mechanism

Drift employs an innovative hybrid liquidity architecture:

Just-In-Time (JIT) Auctions: Handle instant trades
Decentralized Limit Order Book (DLOB): Provides order management
Automated Market Maker (AMM) Backup Mechanism: Maintains deep liquidity during volatility

This design enables the platform to offer sufficient liquidity even during market fluctuations.

Risk Management

Drift manages risk through cross-collateral structures. All trades are centrally managed within a global collateral vault, ensuring smooth lending and trading operations.

Assets are weighted based on their volatility. For example, USDC can be used at a 1:1 ratio, while high-volatility assets like Solana may only provide collateral worth 80% of their value.

Users can also use sub-accounts to isolate different trading strategies.

On-Chain Mechanisms

The platform relies on decentralized agents and external data sources:

Keeper Bots: Execute order matching, trigger stop-losses, and liquidate unhealthy accounts
Oracle Prices: Use external price data to prevent price manipulation and determine liquidation and funding rates

Uses of Drift Token

Trading Functions

Perpetual Futures: Users can make unlimited bullish or bearish predictions on asset prices, with leverage up to 101x.

Spot Trading: Direct buying and selling of assets, with leverage up to 5x.

Lending and Borrowing: Users can stake assets to earn yields or borrow assets for trading.

Prediction Markets: Forecast outcomes of real-world events.

Founders and Background

Drift was founded by Cindy Leow in 2021 and has attracted notable investors including American entrepreneur Arthur Hayes.

Disclaimer: This article does not constitute investment advice. All investments and trades involve risks; readers should conduct their own research before making decisions.

DRIFT6.32%

SOL-0.93%

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ConfusedWhale

· 01-24 04:09

Bro, another DEX on Solana... How long can this thing last?

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gas_fee_therapist

· 01-24 01:55

Another JIT liquidity solution in the Solana ecosystem? It seems like everyone is competing with the same thing.

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MevHunter

· 01-24 01:46

Another DEX on Solana, hybrid liquidity sounds pretty good, but I wonder how the token economics work.

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MevSandwich

· 01-24 01:45

Another DEX in the Solana ecosystem, the liquidity mechanism sounds promising, but I don't know if it can succeed.

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LiquidationWatcher

· 01-24 01:33

nah drift's hybrid liquidity thing sounds nice on paper but honestly... keep that health factor LOCKED IN. seen too many people get rekt by hidden margin mechanics. not financial advice but watch your collateral ratios like a hawk

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