FAQ
How does Drift work?
The Drift Protocol exchange is built on the Solana blockchain and enables transparent and non-custodial trading of cryptocurrencies. It utilizes a decentralized automated market maker (DAMM) to recalibrate liquidity in trading pools based on demand, reducing slippage and increasing capital efficiency. Users can trade perpetual swaps with up to 10x leverage, borrow or lend at variable rate yields, stake, provide liquidity, and swap spot tokens.
Is Drift a secure platform?
The Drift Protocol project is designed as an open-sourced, decentralized exchange with DeFi features, which enhances transparency and security. By executing all transactions on-chain, it allows users to maintain custody of their crypto and trade directly with other users in a peer-to-peer manner. As with any decentralized finance platform, users should exercise caution during trading, borrowing, and lending to not lose their funds.
How to use Drift?
To use Drift Protocol, users need to have a compatible wallet like Phantom and some SOL in their account. They can then visit app.drift.trade, connect their wallet, accept the terms, and deposit their assets to start trading or earning yield. The platform offers a user-friendly interface for various activities such as trading perpetual swaps, borrowing, lending, and staking.
What services does Drift offer?
The Drift Protocol platform offers a range of Solana DeFi services including perpetual futures trading with up to 10x leverage, spot token swapping, and automatic yield generation on deposits. Users can also engage in borrowing and lending at variable rate yields, stake their assets, and provide liquidity to the protocol. Additionally, Drift Protocol has introduced its governance token, DRIFT, which allows users to participate in the platform's decision-making processes through a DAO structure.
