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Drift: The Future of Onchain Trading on Solana
Solana outpaced every other ecosystem in growth over the past year, and DeFi in particular saw a tremendous uptick in activity with memecoins and DePin following suit. Few protocols have been better positioned to capture the growth in users and tokens than Drift, our newest investment. They are one of the clear market leaders in perps on Solana, with over $44B in cumulative trading volume and nearly $500m in TVL on the platform.
Drift is an open-source, permissionless onchain trading platform that allows users to trade perpetuals and spot, bet on prediction markets, and participate in market making. They allow between 5-20x leverage (depending on the asset) and support a wide array of collateral types and cross-margining.
Drift’s unique three-pronged liquidity provisioning – which includes a dynamic AMM (DAMM), decentralized central limit order book (DLOB), and just-in-time (JIT) liquidity – provides more flexible liquidity and tighter spreads for traders. They’re also sneakily the second largest lending platform on Solana, boast one of the highest APYs on their liquid staking dSol product, and are looking to build out other aspects of their business through the Drift Foundation.
It’s little surprise that perp DEXes show strong PMF and are highly profitable businesses. Already a standout, Drift exhibits clear potential to become a winner on the fastest growing chain in crypto. Drift services the pro trader seeking leverage on new assets and faster products.
What truly makes Drift special is the exceptional team behind it. The co-founders, David, Cindy, and Chris, have been builders on Solana for several years, demonstrating a rare resilience in times of crisis and incredible perseverance. We’re impressed by their execution as they’ve expanded the product. It was clear from our first conversation that they are special founders, and from outages to hacks to congestion, they’ve always remained one step ahead of their competition.
The best part about the Drift team is that they are extremely thoughtful and quick to execute. After seeing growing interest in prediction markets, they launched BET on Drift to capture the momentum of the upcoming US election. They’ve also introduced products like market-making vaults, liquid staking, and more. This combination of open-mindedness and agility is invaluable in such a rapidly growing ecosystem. It is increasingly clear that Drift is not just a perps DEX, and users will find plenty of things to do on the platform.
In an increasingly fragmented world, Drift sits closest to Solana and is able to achieve better performance than any of its appchain peers while maintaining composability with the rest of the ecosystem. They are winning market and mind-share as they expand their business beyond perps, and they look to become the future of all trading activity onchain.
Visit Drift to see for yourself.
Blockchain Capital is an investor in one or more of the protocols mentioned above. The views expressed in each blog post may be the personal views of each author and do not necessarily reflect the views of Blockchain Capital and its affiliates. Neither Blockchain Capital nor the author guarantees the accuracy, adequacy or completeness of information provided in each blog post. No representation or warranty, express or implied, is made or given by or on behalf of Blockchain Capital, the author or any other person as to the accuracy and completeness or fairness of the information contained in any blog post and no responsibility or liability is accepted for any such information. Nothing contained in each blog post constitutes investment, regulatory, legal, compliance or tax or other advice nor is it to be relied on in making an investment decision. Blog posts should not be viewed as current or past recommendations or solicitations of an offer to buy or sell any securities or to adopt any investment strategy. The blog posts may contain projections or other forward-looking statements, which are based on beliefs, assumptions and expectations that may change as a result of many possible events or factors. If a change occurs, actual results may vary materially from those expressed in the forward-looking statements. All forward-looking statements speak only as of the date such statements are made, and neither Blockchain Capital nor each author assumes any duty to update such statements except as required by law. To the extent that any documents, presentations or other materials produced, published or otherwise distributed by Blockchain Capital are referenced in any blog post, such materials should be read with careful attention to any disclaimers provided therein.
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