What to know:
- 0.02% perps fees, 20% referral rewards, SOL/USDT as yield-bearing multi-collateral margin on Solana.
- Aims to beat Hyperliquid/dYdX fee levels and fix staking vs margin tradeoff.
- Decentralized perps $400B monthly; next is mainnet, liquidations, oracles, and yield-collateral regulation.
Drift Protocol was the name of VelocityDEX before the company decided a rebranding. They have released their product with 0.01% transaction fee, 2.00% bonus to referrer, and users can use their SOL and USDT for margin to collateralize their positions and continue receiving yield from the tokens.
Rebranding from Drift to VelocityDEX
Drift, the first Solana-native perps, launched a product that has processed cumulative $1 023 046, 515 volume per DefiLlama is now VelocityDEX which will be a different type of marketplace. It is a cross-multiplicative derivative trading place that allows you to use the collateral from one crypto to trade against many and vice versa.
Source: Phantom
VelocityDEX is keeping most of the features and designs of its predecessor Drift Mainly the virtualized AMM and insurance fund, and the only thing that they added to make the whole system work at the same time is a capital efficient system by using a margin account.
This is also a way to solve one of the major problems that the earlier versions of the Solana DEX had namely capital efficiency issues.
Also Read: Drift Protocol Rebounds With $150M Tether Lifeline After April Exploit
Capital Efficiency and Yield Innovation
The implementation of a multi-collateral margin that makes SOL and USDT not only a trade but also yield earnings while being used as backing for transactions essentially solves trader’s primary dilemma i.e. the need to choose between staking income and margin requirements.
Also, we see that with a fee as low as 0.02% which is way lower than the 0.05%-0.1% range generally charged by Hyperliquid, dYdX, and Binance for perpetual contracts, combined with 20% referral incentives, VelocityDEX is poised to gain support mainly for those active on crypto markets like high-frequency traders, market makers, and retail investors who are looking for better trading experience with minimal friction
Also Read: Solana Recovers from $131 and Hits $142 — Is DexBoss the Next Big Crypto?
Competition Heats Up
At the time this release has been scheduled, the market for decentralized perpetual contracts is said to have already reached over $400 billion in monthly volume as shown by Token Terminal.
And, Solana-based platforms are rapidly gaining ground. VelocityDEX is another option besides Jupiter Perps, Drift’s old site, and Hyperliquid. There shall be several public mainnet launches in the form of a beta release.
Also Read: Ripple CEO Backs Progress Toward Clear U.S. Crypto Rules
Be the first to comment