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Crypto News

Drift Protocol Expands Its Services: What You Need to Know

Author

Jay Solano

Tags

Tags Editor's Choice / Slider Posts

Reading time

3 mins
Last update

Author

Jay Solano

Tags

Editor's Choice / Slider Posts

Reading time

3 mins
Last update

Author

Jay Solano

Tags

Editor's Choice, Slider Posts

Reading time

3 mins
Last update

drift protocol

Join our growing community


Risk: Lock period or withdrawal delay on some features, Leverage trading, Liquidation, Platform Hack, Stable/LST Coin Depeg.

Start your exciting adventure in the crypto space with Drift Protocol, your gateway to trading, lending, and earning passive income on the Solana network. But before we set sail, let’s define our course:

What is Drift?

In the context of finance, “drift” refers to the gradual divergence of an asset’s price from its expected or theoretical value. Drift Protocol takes its name from this concept, aiming to accurately reflect price movements across various assets within its perpetual futures markets.

How Does Drift Protocol Work?

Drift Protocol operates as a decentralized exchange (DEX) built on the Solana blockchain. This means it facilitates peer-to-peer trading without the need for a central intermediary, offering several advantages:

  • Transparency: All transactions are recorded on the blockchain, ensuring verifiable and immutable data.
  • Security: Smart contracts govern interactions, minimizing the risk of fraud or manipulation.
  • Accessibility: Anyone with a compatible wallet can participate, promoting inclusivity and open markets.

At its core, Drift Protocol utilizes a cross-margin engine to manage user positions across different markets. This allows you to leverage your holdings efficiently, potentially amplifying your gains (or losses). However, remember, leverage comes with increased risk, so tread carefully!

Beyond Trading

While trading stands as its core offering, Drift Protocol expands its services with:

  • Liquidity Provision: Contribute your assets to liquidity pools and earn passive income from trading fees.
  • Staking: Lock up your tokens for fixed periods to earn attractive rewards.
  • Borrowing/Lending: Access capital by borrowing funds or earn interest by lending your assets.
  • Super Stake: Boost your Solana rewards (but with risk!) Feeling adventurous? Want bigger returns on your $SOL? Try Super Stake! It lets you “leverage” your $SOL (basically, borrow to invest more) with a single click. This can potentially earn you up to 10% yearly! Big disclaimer: This is risky! Before jumping in, understand the risks involved. Don’t say we didn’t warn you!

The “Drift Points” Treasure Map

Launched in January 2024, this system rewards active users with “Drift Points” based on their contributions to the platform:

  • Trading volume: Earn points for your trading activity, but prioritize responsible practices.
  • Liquidity provision: Replenish pools and be rewarded for fostering market depth.
  • Staking: Secure the network and earn points alongside regular staking rewards.
  • Borrowing/lending: Participate in the lending ecosystem and accumulate points while helping others.

Remember, the potential Drift airdrop remains just that – a possibility. Conduct your research, understand the risks involved, and trade responsibly. 

Ready to Chart Your Course?

Join the Drift community:

Start small, explore gradually, and prioritize responsible trading. With a clear understanding and cautious approach, Drift Protocol might just lead you to exciting opportunities in DeFi!

Ready to unlock passive income? Start earning yield on Drift Protocol in 5 easy steps.

  1. 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 or simply swap your $USDC to $SOL using Jupiter exchange
  2. Go to app.drift.trade
  1. Connect your wallet
  • First, you’ll need to accept the terms and then continue.
  1. Deposit your one $SOL to the platform. 
  1. You can also put your money on DLP in maximizing your points but remember that you know how DLP works. Happy Farming!