Drift is excited to introduce Drift Earn, a new product that aims to help Drifters discover more yield generating opportunities, all within a single platform.

This product is built on top of Drift's perpetuals exchange and will empower users with the ability to do more with their capital. The launch of Drift Earn is the next step in advancing Drift’s vision of being the home for every asset on Solana. 

What is Drift Earn?

Drift Earn integrates all of the yield generating products built on Drift into one easy to use platform. Users are able to passively earn yield on their assets by using the product that best suits their risk tolerance. There are moments in the market where the best move is to sit tight and trade less. The various Earn products offer users avenues to continue generating returns on their idle capital. Leveraging the benefits of composability of DeFi, unlocks a world where every token has utility beyond what their native protocol offers. Say goodbye to idle assets and hello to a more capital efficient future. 

What can I do on Earn?

On launch, there are 4 Earn products available, ranked in order of risk levels.

• Borrow/Lend 
• Super stake 
• Market Making Vaults
• Insurance Fund Staking

Borrow/Lend

Drift has an active borrow and lending product that powers the multi-asset cross-collateral capabilities of the perpetuals exchange. All perpetuals trades are settled in USDC on Drift. Whenever assets other than USDC are used as collateral for trades, USDC is automatically borrowed to settle positions. All deposits and unfilled orders on Drift automatically earn yield from the borrow/lend feature. On top of that, users are able to lend and borrow assets on Drift for their own specific use cases as they would with any other borrow/lend protocol. 

It is the lowest risk Earn Product with the largest amount of compatible assets. Main risks are smart contract risks and bad debt. However, bad debt risk is alleviated by Drift’s insurance fund. 

Read here for more information.

Super stake sol

super stake sol allows users to earn leveraged yield on staked SOL with one click. It performs recursive borrow/lend of SOL and LSTs to amplify yield on a user’s initial deposit. This process can be done manually by individuals but it can be a tedious process. Super stake sol offers a seamless experience for users. Users receive the upside without the hassle. As of now, only SOL LSTs are accepted but more assets will be added down the line. Risks of this feature are similar to that of on-chain leveraged trading and liquid staking - de-peg risk,  liquidation risks, liquidity risks, oracle risks and duration mismatch. 

Read here for more information.

Market Making Vaults

Drift Earn provides users with access to delta-neutral market making vaults through a partnership with Circuit. These vaults are built on Drift and the trading strategies are managed by Circuit. Deposited assets are used to carry out various trading strategies (e.g.basis trades, delta neutral market making, etc.) and receive yield in return. Deposits have a 7 day withdrawal period. Market Making Vaults carry a risk of negative performance during challenging market conditions and counterparty risk, in addition to the smart contract and platform risks. 

Read here for more information.

Insurance Fund Staking

Drift’s Insurance Fund helps maintain solvency across the entire exchange by acting as a backstop for any bankruptcies. There are separate Insurance Fund vaults for each asset that can be deposited on the platform—USDC, SOL, JTO, WIF, USDT, and more. Users can stake assets into these vaults to earn yield. Yield for each vault comes from revenue generating activities on Drift Deposits that have a 13 day withdrawal period. Insurance Fund Staking carries the risk of negative performance if the platform experiences large amounts of liquidations, in addition to smart contract and platform risks.

Read here for more information.