Welcome
Drake Brings the Best of Centralized Exchanges Onchain.
What is Drake?
Drake is a fully on-chain perpetual exchange launching on Monad, built by a team with nearly a decade of experience in high-frequency trading, market making, and arbitrage. Drake delivers the seamless performance traders expect from centralized platforms combined with the transparency and composability of DeFi.
Core Innovations: Universal-Asset Margin & Hybrid Liquidity Architecture
Drake's defining features are its advanced cross margin system with the Universal-Asset Collateral Engine that enables previously impossible strategies onchain and the Hybrid Liquidity Model that fuses two distinct execution venues into a single, unified trading engine:
Advanced Margin Systems:
Cross Margin Portfolio (CMP) for capital efficiency across multiple positions
Isolated Margin Portfolio (IMP) for risk-contained individual positions
Universal-Asset Margin Engine enabling multiple collateral types with dynamic collateral ratios across all positions
Red-Black Trie-Indexed Order Book
Deterministic, gas-bounded reads for predictable execution
Price buckets with best-price indices for rapid matching
Price-time priority matching similar to traditional exchanges
Supports limit orders, stop-loss, take-profit, and OCO orders
Full transparency with all orders visible on-chain
Dynamic AMM Vaults
Oracle-synced pricing for fair, manipulation-resistant execution
USDC-denominated strategy vaults providing always-on liquidity
Acts as intelligent counterparty when order book depth is insufficient
No impermanent loss (unlike traditional AMMs)
Multiple revenue streams for liquidity providers
Key Differentiators
Order Book First, AMM Second Execution Hierarchy
Drake prioritizes price discovery through its order book while using the AMM as a reliable backstop. This approach delivers:
Precision: Set exact entry and exit prices via limit orders
Guaranteed Fills: AMM ensures execution even during volatile conditions
Capital Efficiency: Liquidity available across both venues simultaneously
No Slippage Surprises: Intelligent routing minimizes price impact
Professional-Grade Market Making
Unlike passive constant-product AMMs, Drake's vaults operate like institutional market makers:
Quote dynamically at oracle-aligned prices ± spreads
Actively manage exposure and risk
Earn structured yield from multiple sources
No bonding curve mechanics or impermanant loss
Comprehensive Risk Management
Multi-layered protection systems ensure protocol solvency:
Margin ratio enforcement at multiple checkpoints
Open interest caps prevent concentration risk
Dynamic spreads adjust to market conditions
Emergency controls for extreme scenarios
Dark AMM path for internalized liquidations
Protocol Vision
Drake will operate as Monad's clearinghouse infrastructure, providing composable liquidity, efficient settlement, and liquidity aggregation. The protocol uses deterministic, gas-bounded operations optimized for Monad's high-throughput environment.
All operations execute fully onchain with verifiable settlements. Smart contracts handle order matching, position tracking, margin calculations, and liquidations without off-chain dependencies
Monad Madness NYC 2024 Finalist
Drake was recognized at Monad Madness NYC 2024 as a Finalist. As the only Perp DEX on Monad to be selected, Drake was celebrated for its innovative features, unique design, and user-friendliness. Drake is honored to be recognized in such a prestigious fashion and looks forward to bringing its vision to market and establishing itself as the native Perp DEX on Monad.
Base Onchain Summer Buildathon 2024 Winner
We are incredibly proud to announce that Drake has been awarded 1st place in the Trading Track of Base's Onchain Summer Buildathon. During the competition, Drake developed the tokenized funding rate vault, enabling users to deposit USDC and earn yield from funding rates while maintaining a delta-neutral position. Additionally, we hosted a paper trading competition integrated with Farcaster, allowing participants to easily flex their PNL on Farcaster. This achievement reflects Drake’s ongoing commitment to developing innovative, user-centric solutions for perpetual trading.
For more details, please refer to the official Mirror article published by Base here: Announcing the Onchain Summer Buildathon Winners
Mission - Why was Drake built?
The team behind Drake brings a wealth of experience from running a successful hedge fund that excelled in arbitrage strategies on centralized exchanges. Recognizing the potential of decentralized finance, the team sought to expand into decentralized exchanges but found the existing perp DEX landscape lacking in comparison to the experience offered by centralized platforms.
To bridge this gap, Drake was born—designed to deliver a fully onchain experience that meets and exceeds the standards of centralized trading. As Drake continues to evolve, we’re committed to introducing new features that empower both seasoned traders and newcomers alike. Whether you're looking to refine your trading strategies or earn yield through innovative approaches, Drake aims to equip you with the tools to succeed.
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