Module 6.4｜Why did we choose to Build on Drift

Security Assurance

Drift is a highly secure protocol that has undergone rigorous audits to ensure the safety of user funds. The collaboration between NX Finance and Drift provides users with solid protection. Importantly, For the vault operation, NX Finance can only manage user funds but cannot withdraw them, a design that guarantees the reliability of the JLP Delta Neutral Strategy.

Low-Cost Efficient Trading

Delta neutral strategies require frequent rebalancing. Since Drift is built on Solana, known for its speed and low transaction fees, it enables NX Finance to keep transaction costs as low as possible.

Optimized Borrowing Costs

Drift offers competitive borrowing rates for leveraged positions. For delta neutral strategies, which often involve shorting assets to balance long positions, lower borrowing costs enhance the profitability of the strategy by reducing the expenses of maintaining leveraged positions. Regardless of market fluctuations, user funds are always under secure control, allowing investors to confidently use this strategy to achieve stable returns.