# Velocity Exchange > Trade. Hedge. Earn. Velocity Exchange is a decentralized perpetual futures exchange on Solana. It lets traders open perpetual positions against one multi-collateral balance that also earns lending yield, with settlement in USDT. Velocity Exchange is a decentralized perpetual futures exchange and money market built on Solana. It combines cross-margined perpetual trading with borrow and lend markets in one collateral pool, so deposits earn lending yield while they back open positions. It serves traders, market makers, and liquidity providers who want onchain leverage and yield from a single account. Each account holds one collateral balance that counts toward margin at asset-specific weights and is lent to borrowers at the same time. An onchain risk engine with keeper-driven order matching manages liquidations, funding rates, and collateral limits without a centralized counterparty, and markets settle in USDT. Governance and treasury functions run through the DRIFT token. Its offering centers on perpetual markets for crypto assets, alongside lending markets, token swaps, and an insurance fund that stakers back in return for a share of exchange fees. It is used by traders, market makers, vault managers, and integrators building on the exchange. The platform relaunched under its current name after a security incident, with a token-based recovery program for affected users. - Type: Protocol - Sector: Finance - Status: Active - Founded: 2021-05-01 - Profile: https://thegrid.id/profiles/velocity_exchange ## Products - [Drift Exchange](https://thegrid.id/profiles/velocity_exchange): Drift Exchange was a decentralized exchange on Solana that offered leveraged spot trading and perpetual futures through a unified margin account. It combined an onchain order book, a dynamic AMM, automated vault strategies for liquidity provision, and prediction markets, with cross-margin collateral management and multi-layer liquidation systems across all markets. Traders and liquidity providers used it for onchain leverage on Solana. The exchange was paused after a security incident and replaced by a new program deployment. (Decentralised Exchange, Discontinued) - [Drift Insurance Fund](https://thegrid.id/profiles/velocity_exchange): Drift Insurance Fund was a protocol-level risk management system that protected Drift against market events and losses. Users staked assets into insurance vaults to receive a share of exchange fee revenue, while the fund held reserves, paid liquidation incentives, and covered shortfalls to keep the protocol solvent. It closed when the Drift program was paused, and insurance staking continues on the successor exchange. (Onchain Insurance, Discontinued) - [Drift Lending](https://thegrid.id/profiles/velocity_exchange): Drift Lending was a lending protocol within Drift's exchange that let users lend or borrow assets with leverage. It used utilization-based interest rates, automated collateral management, and risk-based borrowing limits. Borrowed assets connected directly to trading through the unified margin system until the Drift program was paused. (Decentralised Borrowing & Lending, Discontinued) - [Drift Competitions](https://thegrid.id/profiles/velocity_exchange): Drift Competitions is a decentralized trading competition and leaderboard program that ran on Solana. It tracked participant performance, applied automated scoring, and distributed prizes through verifiable onchain logic tied to trading activity on the main exchange. The program has concluded and is no longer active, though its onchain records remain accessible. (Customer Engagement Platform, Inactive/Support Ended) - [Velocity Protocol](https://thegrid.id/profiles/velocity_exchange): Velocity Protocol is a decentralized perpetual futures exchange on Solana with an integrated money market. Each subaccount holds one pool of collateral that backs open perpetual positions while the same deposits are lent to borrowers, with fills priced through short market-maker auctions and an automated market maker. Depositors can lend idle collateral for yield or stake into insurance funds that cover liquidation shortfalls and earn a share of exchange fees. The exchange is in open beta following a rebuild after a security incident. (Decentralised Exchange, Open Beta, Main Product) ## Assets - [DRIFT (DRIFT)](https://thegrid.id/profiles/velocity_exchange): DRIFT is the governance token of Drift Protocol, a Solana-based perpetual futures exchange. Holders vote on protocol upgrades, market listings, and treasury decisions, and can stake DRIFT for a share of protocol revenue. Following an April 2026 exploit, DRIFT holders are voting on recovery and relaunch decisions, including a shift to USDT settlement under the Velocity Protocol brand. (Governance) - [Drift Staked SOL (dSOL)](https://thegrid.id/profiles/velocity_exchange): dSOL is a liquid staking token representing SOL staked through Drift Protocol. It accrues staking rewards via an exchange-rate model, where token quantity stays fixed while redemption value rises relative to SOL. Roughly 45,000 dSOL were drained in the April 2026 exploit that suspended Drift, leaving the token inactive pending the protocol's relaunch under the Velocity Protocol brand. (Liquid Staking Tokens (LSTs)) - [Drift Recovery Token (DFX)](https://thegrid.id/profiles/velocity_exchange): The Drift Recovery Token is a planned SPL token to be issued by Drift Protocol to users affected by the April 2026 exploit, separate from the DRIFT governance token. Each unit is intended to represent one dollar of verified loss and a proportional, transferable claim on a recovery pool funded by protocol remnants, exchange revenue, and support from partners. Redemption is designed as burn-on-redeem once the pool exceeds five million dollars, with the token not yet issued as of this writing. (Vault Tokens) ## Links - [Blog](https://www.drift.trade/learn) - [Documentation](https://docs.velocity.exchange) - [Whitepaper](https://assets-global.website-files.com/611580035ad59b20437eb024/61293b57e3103934ddc5535f_v0%20Devnet%20Feature%20Paper%20-%20Revision%201.1.pdf) - [Main](https://velocity.exchange) - [Governance](https://drift.foundation/vote) - [Media Kit/branding](https://www.figma.com/design/ub4YVSWfeKf8rwH0ksTxPq/Drift-Logo---Token-Icon?node-id=3-2&t=7mhOPPXXGiBfAYIo-1) - [Privacy policy](https://docs.velocity.exchange/protocol/legal-and-regulations/privacy-policy) - [Terms of Service](https://docs.velocity.exchange/protocol/legal-and-regulations/terms-of-use) - [Blog](https://drift.trade/updates) - [Blog](https://velocity.exchange/blog) - [Twitter / X](https://x.com/VelocityDEX) - [Discord](https://discord.com/invite/fMcZBH8ErM) - [GitHub](https://github.com/velocity-exchange) - [Telegram](https://t.me/+cUxOuMDUYJNmNmJh) - [Twitter / X](https://x.com/DriftFDN) - [Twitter / X](https://twitter.com/DriftFDN) - [Discord](https://discord.com/invite/95kByNnDy5) ## Legal This data is provided under two licensing models. 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