Drift Protocol Airdrop Guide | Solana-based DEX

Check out our guide on Drift Protocol on Solana, and how to prepare for a potential airdrop.

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Updated January 26, 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.

(Read more: Ultimate Guide to Solana Airdrops 2023 – 2024 and 10 Potential Crypto Airdrops to Watch Out For in 2024)

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. 

Drift Protocol Airdrop Guide

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As of January 2024, Drift has introduced a points system called “Drift Points,” hinting at a potential airdrop soon. (To start earning points, visit: https://app.drift.trade/

The points will be based on a user’s weekly trading volume and other activities on the platform, like providing liquidity, staking, and borrowing or lending crypto.

According to the team, about 100 million points per week will be distributed. There are no rules yet on how many points will be earned per activity, but they stressed that the biggest points can be earned by securing large trading volumes.

This article is published on BitPinas: Potential Drift Protocol Airdrop Guide | Solana-based DEX

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