Solana-Based Drift Launches Election Prediction Markets with DeFi Integration

The Solana-based crypto trading platform, Drift, is rolling out prediction markets. This new feature aims to tap into election betting, similar to what Polymarket offers, but with some unique twists.

With the new BET service, traders can place bets on binary outcomes. For example, they can ask, “Will Trump win the election?” or “Will Harris win the popular vote?” They’ll be able to use various cryptocurrencies for these bets, much like how Polymarket operates on Ethereum and Polygon.

What sets Drift apart is its deeper integration with decentralized finance (DeFi). Users can choose from a wide range of cryptocurrencies as collateral, rather than just USDC. Plus, they can earn yield on that collateral before the event concludes, according to Drift co-founder, Cindy Leow. Users can also hedge their predictions with structured trades based on the price movements of different cryptocurrencies.

Prediction markets are gaining traction this election cycle. Mainstream media often cites statistics from Polymarket, showing just how impactful these markets can be. Traders are investing hundreds of millions of dollars into outcomes they believe are most likely.

Drift primarily focuses on perpetual contracts, allowing users to bet on future price movements of cryptocurrencies without owning them. The platform has expanded its offerings to include various DeFi products, like borrowing and lending services, yield-generating strategies, and even a section for trading election-themed memecoins.

“We’re targeting Solana traders who want to engage in prediction markets but have hesitated to use Polymarket because it operates on Polygon,” Leow explained in an interview. “We’re addressing both ideological and functional concerns.”