Solana-based crypto trading platform Drift is expanding its product lineup by adding prediction markets, making a strategic bet on election betting similar to Polymarket, but with some unique features.
The new BET service will allow traders to wager on binary outcomes, such as "Will Trump win the election?" or "Will Harris win the popular vote?" using various cryptocurrencies. This approach mirrors what Polymarket has done on Ethereum and Polygon, but with a twist.
Drift's version will be more integrated into decentralized finance (DeFi). According to Drift co-founder Cindy Leow, users will be able to place their bets using a wide range of cryptocurrencies as collateral, rather than being limited to USDC. Additionally, they can earn yield on that collateral before the outcome of the event is determined. Leow explained with,
"Users can also hedge their event-based forecasts with structured trades on the price action of various cryptos."
Prediction markets are emerging as a significant use case for crypto in this election cycle, with mainstream media pundits frequently citing statistics derived from platforms like Polymarket. These markets are driven by traders who invest hundreds of millions of dollars in the outcomes they believe are most likely.
Drift, primarily known as a perpetuals trading hub, allows users to bet on the future price action of cryptocurrencies without actually owning them. The platform has diversified into various DeFi products, including borrow-lend facilities, yield-generating strategies, and even a trading page for election-themed memecoins. Leow said in an interview,
"We're targeting the group of Solana traders who have been interested in prediction markets but have avoided using Polymarket due to its presence on Polygon, both for ideological and functionality reasons."
