Drift

User deposits collateral (USDC) → Drift margin account
    ↓
Open long/short position (up to 10x leverage)
    ↓
vAMM automatically calculates entry price
    ↓
Position generates PnL + funding rate
    ↓
Close position or get liquidated
    ↓
PnL settled to margin account

// vAMM price formula (simplified)
k = baseReserves * quoteReserves  // Constant product

// Opening 1 BTC long:
newBaseReserves = baseReserves - 1
newQuoteReserves = k / newBaseReserves
amountPaid = newQuoteReserves - quoteReserves

// Price impact:
price = amountPaid / 1  // Price per BTC
slippage = (price - oraclePrice) / oraclePrice

// Advantage: No real liquidity pool needed, price calculated mathematically

// Liquidation condition
totalCollateral = deposited USDC + unrealized PnL
maintenanceMargin = position size / leverage

if (totalCollateral < maintenanceMargin) {
  // Trigger liquidation
  Liquidation bot takes over position
  Liquidation penalty = position size * liquidation fee (~0.5%)
  Remaining margin returned to user
}

import { DriftClient, Wallet, BN } from '@drift-labs/sdk'
import { Connection, PublicKey } from '@solana/web3.js'

const connection = new Connection('https://api.mainnet-beta.solana.com')
const wallet = new Wallet(/* your Keypair */)

// Initialize Drift client
const driftClient = new DriftClient({
  connection,
  wallet,
  env: 'mainnet-beta',
})

await driftClient.subscribe()

// Deposit USDC as collateral
const depositTx = await driftClient.deposit(
  new BN(1000 * 1e6), // 1000 USDC
  0, // USDC market index
  driftClient.getUser().userAccountPublicKey
)

console.log('Deposit successful:', depositTx)

// Open SOL-PERP long (5x leverage)
const marketIndex = 0 // SOL-PERP market
const baseAssetAmount = new BN(5 * 1e9) // 5 SOL
const direction = 'long'

const openPositionTx = await driftClient.openPosition(
  direction,
  baseAssetAmount,
  marketIndex
)

console.log('Position opened:', openPositionTx)

// Query positions
const positions = driftClient.getUser().getUserAccount().positions
console.log('Current positions:', positions)

import { DriftClient } from '@drift-labs/sdk'

const driftClient = new DriftClient({ connection, wallet, env: 'mainnet-beta' })
await driftClient.subscribe()

// Get SOL-PERP market data
const market = driftClient.getPerpMarketAccount(0) // SOL-PERP

console.log('Market Info:')
console.log('Mark Price:', market.amm.lastMarkPriceTwap.toNumber() / 1e6)
console.log('Oracle Price:', market.amm.lastOraclePriceTwap.toNumber() / 1e6)
console.log('Funding Rate:', market.amm.lastFundingRate.toNumber() / 1e9)
console.log('Open Interest:', market.openInterest.toNumber() / 1e9, 'SOL')
console.log('Long/Short Ratio:', market.amm.baseAssetAmountLong.toNumber() / market.amm.baseAssetAmountShort.toNumber())

// Get current funding rate
const fundingRate = market.amm.lastFundingRate.toNumber() / 1e9
const annualizedRate = fundingRate * 365 * 24 // Annualized funding rate

console.log('Annualized Funding Rate:', annualizedRate * 100, '%')

import { DriftClient } from '@drift-labs/sdk'

const driftClient = new DriftClient({ connection, wallet, env: 'mainnet-beta' })
await driftClient.subscribe()

// Get user account info
const user = driftClient.getUser()
const userAccount = user.getUserAccount()

// Calculate account health
const totalCollateral = user.getTotalCollateral()
const maintenanceMargin = user.getMaintenanceMarginRequirement()
const freeCollateral = user.getFreeCollateral()

console.log('Account Health:')
console.log('Total Collateral:', totalCollateral.toNumber() / 1e6, 'USDC')
console.log('Maintenance Margin:', maintenanceMargin.toNumber() / 1e6, 'USDC')
console.log('Free Margin:', freeCollateral.toNumber() / 1e6, 'USDC')

const leverage = totalCollateral.toNumber() / (totalCollateral.toNumber() - maintenanceMargin.toNumber())
console.log('Current Leverage:', leverage.toFixed(2), 'x')

// Calculate liquidation price
const positions = userAccount.positions
positions.forEach((pos, index) => {
  if (pos.baseAssetAmount.toNumber() !== 0) {
    const liquidationPrice = user.liquidationPrice(index)
    console.log(`Market ${index} Liquidation Price:`, liquidationPrice?.toNumber() / 1e6)
  }
})

import { DriftClient, JITMaker } from '@drift-labs/sdk'

// Initialize JIT Maker
const jitMaker = new JITMaker({
  driftClient,
  marketIndex: 0, // SOL-PERP
})

// Listen for large orders and provide instant liquidity
jitMaker.subscribe()

jitMaker.on('largeOrder', async (order) => {
  console.log('Large order detected:', order.baseAssetAmount.toNumber() / 1e9, 'SOL')

  // Provide liquidity to earn fees
  const provideLiquidityTx = await jitMaker.provideLiquidity({
    orderSize: order.baseAssetAmount,
    direction: order.direction === 'long' ? 'short' : 'long',
  })

  console.log('JIT liquidity provided:', provideLiquidityTx)
})

// JIT Maker advantages:
// - Earn taker fees (~0.05%)
// - No impermanent loss risk (instant close)
// - Use flash loans for zero capital requirement