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.
CBW - External Analyst