Solana-Based DeFi Protocol Drift Hits New TVL Over $20M

As the Solana decentralized finance (DeFi) ecosystem continues to pick up, several platforms are breaking through new frontiers, onboarding more users and cash. Drift protocol, a Solana-based perpetual swap trading project, is the latest among them.

According to on-chain data from the blockchain analytics platform DeFiLlama, the Drift protocol has now locked in a new total value locked (TVL) of $20.16 million.

Source: DeFiLlama

What is Drift Protocol?

Launched in 2021 by Cindy Leow, Drift Protocol emerged as an open-source decentralized exchange (DEX) that facilitates non-custodial trading to users. The platform also enables users to borrow, lend, stake, and swap cryptocurrencies. 

The project is backed by the crypto-focused investment firm Multicoin Capital, which led a $3.8 million seed funding for the DEX in October 2021.

Drift protocol presently runs its version 2 (v2), a sequel to the project’s v1 providing enhanced liquidity, market making, and collateralization to improve trading experience. 

While unveiling Drift v2 last year, the protocol added that Drift v1 attracted over 15,000 cumulative users and more than $10 billion in trading volume within six months.

Drift Protocol Attains New TVL

Drift Protocol’s latest milestone follows a three-month steady increase in TVL, going from $11.8 million in August to its current valuation. The project’s achievement can be attributed to an increase in engagement with its service from investors.

A factor that may be contributing to the increase is the addition of new trading tools to offer users a seamless trading experience. The latest among these tools is the Auto-confirm feature rolled out in collaboration with the crypto wallet provider Phantom.

Like Drift, other Solana-based protocols are actively making waves within the crypto space. For example, Star Atlas, a space-themed gaming platform building on the Solana blockchain, accounted for over 15% of the daily trading volume of the network’s transactions earlier this month.

The impressive achievements of these projects have rubbed off on Solana’s overall performance. SOL, the native coin for the blockchain, currently trades at $23.5, a 20% increase over the past month.