What is Drift Protocol?
Drift Protocol is a decentralized exchange (DEX) on the Solana blockchain, focusing on perpetual futures trading. It offers a highly efficient, transparent, and user-friendly trading experience by leveraging Solana's high throughput and low latency capabilities. Users can trade various assets with up to 20x leverage, making Drift a robust platform for both perpetual swaps and spot trading.
Drift Protocol employs a hybrid liquidity model that combines an automated market maker (AMM) with an order book to ensure deep liquidity and minimal slippage for traders. This design handles large trades efficiently, providing competitive pricing similar to centralized exchanges but within a decentralized framework.
Governance is facilitated by the DRIFT token, empowering the community to participate in decision-making through the Drift DAO. This decentralized governance structure includes general protocol development, managing risk parameters and protocol upgrades, funding ecosystem projects through innovative governance mechanisms.