I respect the idea behind drift, but I don’t fully agree with the points being made here. Outlining an MM perspective on the comments made by @cindyleowtt 1. Access to Solana’s atomic global state is at odds with deep ACTIVE liquidity. - Atomic global state is expensive for market makers to update quotes, forcing wider and therefore worse active liquidity. - Priority lanes are crowded. To stand out from the crowd, a market maker will have to pay greater than epsilon to update quotes. 2. Being built on Solana L1 does not mean anything. The front end is the wallet. The wallet routes to protocols. Spot DEXs are commodity businesses. And the biggest Solana front end just chose Hyperliquid as the protocol to route flow to. Because it has the deepest liquidity. And it’s not even close. 3. Asset issuance is not the slam dunk metric you think it is. Net asset velocity on Solana is super high because of the memecoin mania. High quality community assets (SPOT) will ultimately have more liquidity on a CLOB. Even with Hyperliquid, in 9/10 situations, the most spot liquidity is on Binance. Hyperliquid carved out its niche by being fast to list new perps, but got griefed and have therefore taken a different approach. 4. In the universe of users, the L1 with the most liquidity will see the highest user flows because the front ends that are in touch with users have much better scope for ARPU by doing just that. Users won’t go to “ They will go to a front end. The front end will send them to where it makes most sense for them. 5. Re building out the microstructure for L1 DEFI, I fully agree. You guys have done an incredible job pushing capital efficiency. I view L1 DeFi as a great bootstrapping business. But ultimately you need to own your block space to optimise for tight active liquidity.
SOL perps are not dead. Phantom launching perps with HL yesterday is a big reckoning moment for Solana DeFi. More competition forces more innovation, and we will rise up to the challenge. Drift and Solana DeFi are here to stay: 1. Drift is built directly on Solana’s L1: Tighter composability, lower latency, and direct access to Solana’s atomic global state, a performant chain with high daily activity of $2B DEX volume, 3M+ active wallets, $7M app revenue, a network that is critical for building truly liquid, decentralized perps and internet capital markets. 2. Asset issuance is the foundation of liquid markets: Solana has the highest user growth, economic activity, token issuance, institutional adoption, and native asset activity, making it the best environment to build scalable, liquid perp markets. The most liquid perp markets will be built on top of the L1 with the highest user flows. 3. Drift is focusing on building the best market microstructure for L1 DeFi. Drift's Just-In-Time (JIT) and SWIFT liquidity mechanisms support dark/private AMM execution. Our design blends the best of CLOBs, RFQs, and dark pools without fragmenting liquidity, and is optimised for the composable, fast-paced nature of Solana. We are in execution mode with major performance sprints happening and liquidity upgrades coming soon. We’re heads down building delightful UX upgrades for our users and tools that make it easy for developers to build on Drift. We will not stop shipping until we have the best user experience in the game. GDrift
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.