Gm friends,
Welcome back to another Wealth Mastery Premium Investor Report.
Let’s jump in!
Here’s what’s in today’s issue:
- My portfolio updates.
- Jesse has a deep dive on Drift Protocol: The king of Solana futures.
For any crypto related questions please comment on the website.
Lark’s Portfolio
Buys and Sells
No updates this week
Open BUY and SELL Orders
(NOTE: You should never blindly follow my moves. I share these for educational purposes, not as signals for you to trade on)
BUY
- N/A
SELL
Ethereum $4,800
Drift Protocol – King of Solana Futures
One of the reasons you’d choose to look at Drift Protocol is due to its TVL to Market Cap ratio. Projects that have strong liquidity pools like Drift Protocol, yet whose token value is three to four times less by comparison are prime real estate for profitability.
It used to be the other way around. When a project’s TVL was only a fourth of its token’s Market Cap. As I’m sure you’ll agree, the current High TVL & Low MC ratio is preferable. Making a project like Drift Protocol very appealing. That is, as long as those deposits keep coming in.
What is Drift Protocol?
Drift Protocol started as any general-purpose perpetual DEX would, offering the same familiar trading desk to make high-risk high-reward predictions on future market conditions.
As with all of these products, leverage is a key element to their success. Allowing users on central exchanges to overleverage into 100x positions isn’t all it’s cracked up to be. With the trader not being the only one taking on additional risk. Even if the odds are in the house’s favor.
Of course, this works differently in a decentralized environment. When the house becomes another individual like you on the other side of the trade. Drift has branched out from being just another simple Perps Exchange. Introducing Pre-Market Trading and Yield Maximization along with many other upgrades since it first launched.
Activity on Drift Protocol gives a lot of insight into how far the protocol has come since relaunching in 2022. With Drift V2 trading more than $44 billion across 21 million trades. Capturing $360 million in liquidity, Drift has maintained a strong and consistent stream of users using the protocol.
Holding $435 TVL at its highest point last July. When you realize that Drift Protocol only held $20 million TVL this exact time last year. You can see how impressive this growth is. Expanding twenty times its value within the first year.
The introduction of V2 is a pivotal moment for Drift. Between the FTX and LUNA fallout. In May of 2022, a vulnerability was detected on Drift where a user was able to drain the entire insurance vault and user funds. Drift was in shambles as it ceased all trading and sunset V1.
Securing a $15 million loan from investors, Drift repaid all users whose funds were stolen and began the soft launch of V2. However, this time Drift would expand past its derivatives-only approach from V1. While also introducing a new execution method to reduce slippage for big trades. Known as a “Liquidity Trifecta”, this sends each trade through three layers of liquidity to provide the best possible price.
What can you do with Drift Protocol?
There’s quite…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
