We are thrilled to announce our strategic partnership with Circuit! Circuit is a non-custodial market making protocol built for DeFi. Circuit Vaults are on-chain delta neutral market making vaults.
Institutional Grade Market Making Vaults
This partnership will natively integrate Circuit’s DeFi market making vaults into Drift. With Circuit Vaults, users can provide native liquidity to top market makers, earning yield from institutional-grade market making strategies. Circuit aims to deepen the liquidity available for takers on Drift.
Circuit Vaults reduce the barrier of entry for anyone in DeFi to participate in top market making strategies across DeFi. At Drift, we are excited about how Circuit will take the Drift trading experience to the next level.
User Benefits — A Better Trading Experience
Our goal at Drift is to provide users with the best trading experience possible and our partnership with Circuit is a big leap in that direction. Our partnership with Circuit will increase the liquidity on Drift, resulting in a better trading experience with lower slippage on trades of all sizes.
How does Circuit Market Make for Drift?
Circuit will be launching a series of vaults in partnership with Drift, starting with the Supercharger Vault. Each Vault will have different strategies.
Once a user deposits USDC into Circuit’s Supercharger Vault, the Vault's smart contract will automatically deposit USDC into the user’s own market making account on Drift. The user will keep the funds within Drift, but delegate trading access to Circuit’s algorithmic MM strategies. From there, Circuit's algorithmic market making strategy will trade on Drift perpetual swap markets on behalf of each user.
Circuit will be operating a delta-neutral market making strategy on Drift. This means the strategy minimizes any exposure to market movements by automatically hedging. To hedge its strategy positions (i.e. if Circuit’s vaults are long/short any amount), Circuit will use Drift’s spot margin and cross-collateral system by holding or shorting the equivalent spot assets — directly on Drift. Additionally, Circuit will allocate a portion of its capital to Drift's DLP program and hedge these positions accordingly.
The strategy generates profits from the delta between its bid-ask spread and maker rebates. Returns will be distributed among depositors in the Circuit Vault based on their share of the total deposits. It’s important to note that deposits into Circuit Vault are fully non-custodial and will never leave the underlying exchange.
Circuit is now launching the first Supercharger Vaults in private beta. Early users can get whitelisted for the vaults by filling in this form! https://6vgn0rlomqp.typeform.com/to/afusCPLE
Drift will be launching more details on the Supercharger Vaults in the coming week.
More About Circuit
Circuit Vaults will be natively integrated into underlying perp DEXes to provide liquidity. Circuit’s mission is to democratise market making, making these strategies accessible to a wider audience and allowing more people to reap MM rewards. Circuit’s team is comprised of experienced quants and operators with 20+ combined years of market making and traditional finance experience.
Circuit Website: https://www.circuit.trade/
Circuit Docs: https://docs.circuit.trade/
Circuit Telegram: https://t.me/circuitcommunity
Circuit Twitter: https://twitter.com/circuittrading_
