[Confirmed] Drift Protocol Airdrop Guide | Solana-based DEX

Updated April 22, 2024. Please check the airdrop section.

One advantage of decentralized exchanges over centralized exchanges is that they are more secure and less exposed to potential fraud and hacking accidents.

A Solana-based DEX then existed, allowing users to trade perpetual futures, spot tokens, borrow and lend, and provide liquidity on the blockchain while prioritizing security.

Drift Protocol Introduction

The Drift Protocol is a DEX that supports low slippage, low fees, and minimal price impact on all trades. It offers features such as spot trading, perpetuals trading, lending, and passive liquidity provision.

Drift also uses a cross-margined risk engine, a keeper network, and multiple liquidity mechanisms to offer low fees, low slippage, and high performance.

According to the team, on-chain exchanges suffer from limitations associated with blockchains—namely, speed and limited computational capacity on-chain.

Thus, Drift was designed as an exchange that is “robust, computationally efficient, and incentivizes market maker participation, as well as liquidity provision.”

Drift Protocol Features

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As a DEX, a Solana wallet is needed and should be connected to use Drift’s products and services. Its utility token is also $SOL, which means transaction fees are paid through $SOL tokens.

To trade spot tokens, go to the spots trading section, choose the token or pair to be traded, type in the desired amount, and choose the “buy” or “sell” buttons. The order book, the chart, and the recent trades can also be accessed on the platform.
To trade perpetual futures, go to the perpetual futures section, choose the token or pair to be traded, type in the desired amount, choose the leverage percentage, and choose the “buy” or “sell” buttons. The funding rate, the liquidation price, and the PnL can also be accessed on the feature.
To borrow or lend, go to the lending section, choose the token to be borrowed or lent, type in the desired amount, and choose the “borrow” or “lend” buttons. The interest rate, the collateral ratio, and the available balance can also be accessed on the section.
To provide liquidity, go to the liquidity section, choose the desired pool, type in the desired amount, and choose the “deposit” button. The pool size, the fee rate, and the APY can be accessed on the feature.
To stake, go to the staking section, choose the token to be staked, type in the desired amount, and choose the “stake” button. The staking rewards, the lockup period, and the unstake fee can also be accessed in the same section.