Drift - Crypto Doesn’t Need Another CEX - TOKEN2049 Singapore 2023

hello everyone hi I'm Cindy Leo from drift protocol and this is David yeah we're both the co-founders of drift we're a decentralized exchange built on top of Solana largest Perpetual decks right now and today we're here to talk you through why you should stop trading on Sexes and migrate over to the dark side of D5 so centralized exchanges historically centralized entities rather have continually failed time over time you cast your mind back to mount gox in 2014 the recent events across 2021 2022 and you think this keeps happening and why does it why does it keep happening it happens because there's a single point of failure and history is repeating itself so there has to be a better way and recently we had the biggest incident hit us and that was FTX so one would think after all this time the norm of trading the norm of operating should move from a centralized model to that of a decentralized model so the total value lost over just last two three years has been over 100 billion in assets whether that has been seized subpoenaed or just stuck and that's simply too much now specifically for centralized exchanges they're known to do many things manipulate prices censor transactions freeze accounts and fake actual Reserves and what that means for the user is a very poor user experience you don't know when your order is going to be filled you don't know if your order is going to be submitted and ultimately that's very detrimental to the user experience because you're really not knowing what you're getting into you might get a feel you might not get a fill and frankly that's just not good enough and there has to be a better way this is something that is not going to happen with D5 and frankly at drift we think it's time to stop using centralized exchanges so let's talk about what we actually have today this is not 2018 when the infrastructure for dexis was still so early that you could barely place an order today we have actual live dexes with liquidity that is on par with centralized exchanges so I'm here to tell you today that all this already exists in the form of of drift we've been live for about two years and all the problems that David just mentioned of trading on a centralized exchange like having orders being spoofed having um you know the the order book Market maker front run your orders are solvable and D5 today so the order book that you would be trading on here fully auditable on the blockchain uh every single order you know is provably fair and not being Fun Run uh the biggest thing about using a DEX over a sex in essence is really that it's built on the blockchain that is unruggable and is unable to be uh to be resisted by centralized authorities you've seen you know a lot of uh regulatory concerns over centralized entities being like put down and like not users not being able to trade and what we're looking to solve here today is bringing the training experience to anybody who is able to to do that who wants to trade because that's what we believe it should be uh and the last thing is having reserves that are actually provable on chain is the most important thing to any Trader you wouldn't trade or you wouldn't eat in a restaurant where you don't know what food you're getting into that's basically what trading on a centralized exchange is like so bringing the D5 experience to you is opening up the actual trading experience so that you know what you're getting into you know exactly what you're trading you know who your condo party is and you know where your funds are that's uh the craziest black box that we still continue to trade with today so I want to show you guys a video as well going back to this already exists today if you look at the left side this is a experience trading longing Bitcoin on binance on the right it's the experience longing Bitcoin on drifts you look at the orders being filled binance has been hit with errors and rate limits whereas on drift it gets felt within a matter of less than a second so I'm here to tell you the decentralized trading experience is already on par with what you see on centralized exchanges so I'll turn it over to David to talk more about drift as a whole so let's talk a little bit about drift and I think the demo gives you a slight snippet of what to expect we're leading derivatives exchange currently just on Solana we're number one we have over 90 market share and a lot of the tenants of what we're building is sometimes immutable transparent and visible to everyone we trade we want to have the lowest division chain replicating a centralized experience uh on chain and within the first six months of us launching traded 10 billion of notional volume and right now I have launched a V2 so moving on we're an on-chain leverage training exchange now this alone is confusing and I want to break this down for everyone in the audience today some of you might be Traders you're familiar with spot where you're simply swapping assets we offer perpetuals in Futures markets uh traditionally that usually comprises anywhere between five to ten times spot volume so we offer Perpetual swaps we also offer opportunities for Traders to earn yield deposit rln products and essentially creating a full Suite of trading products on chain and the thing is that this is all possible it's taking something that exists previously in a black box environment where you might not know who your counterparty is you might not know who you're dealing with to an environment where everyone is on the same page everything that takes place on drift is something that you can see on the blockchain whether it's block Explorer you can find every transaction that takes place and you can see who's trading against who is filling your orders and you also know that when you trade with confidence that everyone in the platform follows the exact same rules as you no one has an edge no one has additional benefits that you don't have no one's able to fill orders before you can everyone's on the same platform and that includes us the creators of this platform so we're gonna quickly walk you guys through a demo as well on drifts and what the experience looks like oh pick the other videos we have some technical issues here but essentially um that aside we the experience of depositing into the exchange and trading is very similar to what you would see on my ends the thing that most people talk about is onboarding to D5 is so difficult how can I actually do it we'll we make it very easy for you to be able to get your onboarding done within a matter of minutes where you can use any funds that you have in D5 or in central Traders and immediately send friends through and stop trading so this is a pretty revolutionary product we have like the deepest liquidity on chain as well so this and effectively should replace all of your essentialized trading needs so going back to kind of the end of the the presentation um we were very bullish defiled obviously I think the recent year of developments and Innovations in the D5 space have shown us that defy dominance over centralized exchanges is inevitable unit swap only started two years ago and is now already the premier like spot platform on amms we believe that we can hit the same gross trajectory within the next five years to conclude our presentation we believe that in five years you should all be trading on on a centralized exchange we shouldn't be on this stage to tell you that uh to tell you that you need to trade on this essential exchange all your friends should be telling you to to be doing this rather than going and trusting an essential asset change so yeah to conclude that today we're very bullish uh very green 2049 where everybody's on their phone using drifts and trading on decentralized exchanges so at this stage I hope this has convinced many of you to think about what decentralized trading is like having custody of your funds uh and taking control of your funds again is something that we're looking to push for it's too long have we just placed confidence Blind Faith in organizations that simply do whatever they want under the covers so this is our way of bringing the power back to the users and we know we hope you guys have enjoyed listening to our presentation today so thank you very much everyone please find us around here we'll be around the chat about D5 drifts and uh follow us on Twitter drift protocol