Solana dependent Perpetual Swaps DEX Drift raised $3.8 million


Perpetual swaps exchange Drift announced that it has raised $3.8 million in fresh funds for initial liquidity and a deep insurance fund, just days after launching its alpha mainnet.
In addition to Multicoin Capital, Jump
Capital, and Alameda Research participating in the token sale, market makers' have
demonstrated interest in Solana's still-relatively new decentralized exchange
scene. In 24 hours, Drift has processed approximately $2 billion in trade
activity.
The project will support tokens that
originate from SOL and ETH and the company aims to become Solana's top
decentralized futures exchange. The Drift Alpha Ticket, according to Drift,
will "identify and reward the project's early adopters and
believers."
What is Drift?
Large orders have a lot of slippage and large
gas fees. The DEX trading experience has fallen short of that expectation.
Despite the fact that crypto is decentralized, centralized derivatives exchanges
remain prominent. Drift's mission is to deliver on-chain cutting-edge
trader-centric experience from centralized exchanges.
Drift's DEX, according to Cindy Leow, a
co-founder, uses a dynamic automated market maker to keep Drift's liquidity
pool's needs in line with market demands. Drift, she claimed, is more
capital-efficient than automated market makers (AMMs), which are used on many
chains.
“Who’s going to pay 3% for a 1 BTC trade? That’s ridiculous,” she said. “We have a mechanism that essentially repegs the core of the virtual AMM – where you have the most liquidity, the lowest slippage – back to the current oracle price.”
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DEX offers a trading experience that is quick
and responsive and Solana's low-latency blockchain is at the heart of this
project. Cross-margin trading is fully supported and uses a single pool of
collateral to take many positions.
Solana (SOL), the native token of the Solana
network, soared in value this week, rising to sixth place in terms of market
cap. The token rose 31.4% this week, 50.4% over the past month, and 11,467%
since January.

Pavan A
CBW - External Analyst
INDIA