Trade perpetual futures, without permission.
Drift Protocol offers capital-efficient, low-latency perpetual markets that let traders open leveraged positions against pooled liquidity. Cross-margining reduces capital fragmentation while automated risk engines keep insolvency risk constrained.
Cross-margin architecture
A single margin pool supports multiple perpetual markets, boosting capital efficiency and lowering liquidation frequency for diversified traders.
On-chain settlement
Deterministic settlement logic and oracle integrations ensure transparent PnL computation and timely updates.
Automated risk engine
Real-time risk calculations, dynamic margin requirements and automated liquidations help keep the protocol solvent under stress.
Product overview
What traders get
- Permissionless access to leveraged perpetuals with transparent funding fees.
- Cross-margining across multiple assets to reduce isolated margin waste.
- Low slippage execution via concentrated liquidity pools and AMM-backed order books.
- On-chain PnL & position history — verifiable and auditable.
What liquidity providers get
- Yield from trade fees, funding payments, and optional insurance premiums.
- Positions are aggregated into vaults that minimize impermanent loss through hedging and dynamic rebalance.
- Transparent risk allocation and real-time analytics for vault performance.
Security & composability
Security is central to Drift Protocol design. The codebase is structured for audits, upgradeability is permissioned through a governance module, and risk modules are isolated to limit blast radius. Integrations are built as composable primitives so third-party builders can reliably connect oracles, liquidators, and UI wallets.
Key controls
- Guardian parameters — emergency pause and oracle swap controls for on-chain governance to react to extreme market events.
- Timelocked upgrades — upgrades execute only after a transparent timelock to allow monitoring and community review.
- Audits & bug bounties — regular third-party audits and an active bounty program to reward responsible disclosures.
Tokenomics & incentives
The protocol token (DRFT) aligns incentives across stakeholders: governance, fee distribution, and LP boosts. DRFT holders can stake to receive protocol fees, vote on parameter changes, and lock tokens for ve-style boosts that increase LP share of fee emissions. Emissions are designed with long-term sustainability in mind — early incentives prioritize liquidity formation while a portion of fees flows to a protocol insurance fund.
Roadmap
- Phase 1 — MVP: Core perpetual engine, single-margin pool, and basic UI.
- Phase 2 — Liquidity & integrations: LP vaults, oracle diversification, and CEX/DEX aggregator partnerships.
- Phase 3 — Governance & token launch: DRFT distribution, on-chain governance, and ve-style staking.
- Phase 4 — Scaling: Layer 2 expansions, cross-chain bridges, and advanced risk products (options + structured vaults).
How it works — simplified
At a high level, Drift collects margin from traders into a shared pool. Traders open positions denominated in base assets (e.g., USDC margin for BTC perpetual). Price oracles feed spot prices. The protocol calculates mark price, funding rates, and per-position margin ratios in real time. When a position falls below maintenance margin, the liquidation engine performs a capped auction or automated partial close to restore solvency — preferring partial fills and insurance buffers over abrupt whole-position liquidations.
Team & contributors
Drift Protocol is built by a distributed team of engineers, researchers, and risk specialists with backgrounds in derivatives, HFT systems and cryptography. The project welcomes community contributors — from frontend builders and market makers to security researchers.