Drift Protocol is a decentralized, fully on-chain perpetual swap exchange built on Solana. Drift Protocol is the first perpetual swap exchange to leverage a Dynamic AMM. A Dynamic AMM is based on a virtual AMM (vAMM), but its key innovation is that it introduces repegging and adjustable k mechanisms to recalibrate liquidity in a trading pool based on participant demand. DAMMs, as a result, have the ability to be more flexible than traditional vAMMs and AMMs, which lead to better capital efficiency and reduced slippage. Drift’s exchange gives traders the ability to take on cross-margined long or short positions with up to 5x leverage with minimal slippage thanks to the protocol’s Dynamic Automated Market Maker (DAMM). The exchange first launched with a market for SOL and later expanded to other assets including BTC, ETH and Solana DeFi tokens. The main innovation of the protocol is high-capacity cross margin trading across a large selection of markets (up to 1000). The protocol’s v0 is built using very recent innovations in the vAMM/AMM space: adapting market liquidity as specific volume grows, a fee structure around market imbalance, rewarding the proper Traders in a re-pegging event, valuable insurance fund protection, and more. On Drift, all trades are executed against a virtual dynamic AMM (DAMM) bringing with it two major advantages: first it reduces slippage for traders while being adaptable to the demand for trading in the market and secondly, it reduces the oracle and terminal price divergence over time. The protocol doesn't have a token associated with it yet, but one will most likely be issued in the coming weeks/months, following the recent launch of the protocol, as the team is working on tokenomics.