Drift Protocol (DRIFT), launched in 2021, is one of the largest decentralised exchanges (DEX) on the Solana blockchain, offering advanced trading capabilities such as spot trading, perpetual futures, borrowing and lending, passive liquidity provision and more.
The protocol offers up to 10x leverage for cross-margin trading through a unified collateral pool. Drift's liquidity mechanisms include Just-in-Time (JIT) Auction Liquidity for efficient order matching, a decentralised orderbook (DLOB) for precise trading, and an Automated Market Maker (AMM) that finds the best prices for users through a sophisticated algorithm.
The DRIFT token serves as the protocol's native governance and utility token, powering governance via the Drift DAO. This allows holders to vote on network proposals, treasury management, and community projects. DRIFT can also be staked for rewards, contributing to platform security and liquidity.