Drift Protocol is a decentralized exchange (DEX) built on the Solana blockchain, enabling transparent and non-custodial trading on cryptocurrencies. Drift Protocol offers four main products: spot trading, perpetual futures, borrow and lend, and passive liquidity provision. Drift Protocol uses three liquidity mechanisms to support low slippage, low fees, and minimal price impact on all trades: just-in-time (JIT) auctions, decentralized limit order book (DLOB), and automated market maker (AMM). Drift Protocol aims to provide a fast, efficient, and robust trading experience for users and market makers. For more information, you can visit their website or read their documentation.
Decentralized exchanges work peer-to-peer using smart contracts, transactions occur directly between crypto traders. DEXs fulfill one of crypto’s core missions: executing financial transactions that aren’t officiated by banks, brokers, or any other intermediary.