What is Drift?
Drift (DRIFT) is a decentralised trading platform designed to offer users various financial services, including on-chain perpetual trading, borrowing and lending capabilities, margin trading, and more. As the native governance token of the Drift protocol, DRIFT plays a crucial role in the platform’s functionality and governance.
Technology Behind Drift
Built on the Solana blockchain, Drift seeks to leverage its high transaction per second (TPS) capabilities, providing users with quick and seamless trading experiences. This innovative use of technology allows for efficient trade execution and yield generation, making it attractive to traders and investors alike.
Key Features of Drift
- Passive Liquidity Provision: Drift enables users to provide liquidity passively, contributing to the platform’s overall liquidity without the need for active management.
- Cross Margining: The platform utilises a cross margin approach, allowing various tokens to be used as collateral for trading, enhancing the flexibility for users.
- Yield-Bearing System: Users can benefit from a yield-bearing system, which adds an additional revenue stream for liquidity providers.
- Drift Insurance Fund: The Drift protocol includes an insurance fund to protect users against potential losses, providing an added layer of security.
Governance and Community
DRIFT functions not only as a trading token but also as a governance token. Holders of DRIFT are granted voting rights within the Drift Decentralised Autonomous Organisation (DAO). This feature empowers users to propose and vote on platform changes, upgrades, and ongoing project adjustments, ensuring a community-driven approach to platform development.
Drift’s Vision
Drift (DRIFT) aims to harness the benefits of the Solana blockchain, creating a comprehensive decentralised trading platform that is user-friendly and equipped with diverse trading and yield options. The platform prioritises accessibility and efficiency, catering to both experienced traders and newcomers in the cryptocurrency space.
Relevant Resources
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