Crypto markets suffered a $20B drawdown yesterday after Trump's surprise tariff announcement, which spiralled into one of the most severe 1-day drawdowns in all of crypto's history Many have asked how @DriftProtocol's risk engines performed, and I want to highlight how Drift has always puts users first and handles risk and liquidations differently from other exchanges: 1. Drift does not have an ADL (auto-deleveraging system) - it has a risk waterfalling system to socialize losses among everyone remaining in positions pro rata by size. Yesterday, the vAMM reserves and insurance fund successfully covered all user losses, so no positions were deleveraged 2. Drift also has one of the largest Insurance Fund to Open Interest ratios across all Perp DEXes with $50m to support $500m+ in open interest, giving a huge buffer for the protocol to support bad debt 3. Even though we are a cross-collateralised exchange, our risk engine managed to do $76m in liquidations with no user losses 4. Solana and Drift experienced zero downtime, with Solana crushing it with record TPS yesterday of 3200+. 5. Drift's fee pools covered all losses, and there was no bad debt incurred for users. It’s been a challenging day for the industry, but moments like this underscore the importance of robust design for exchanges that always puts users first Up

"I'm $USELESS" @theunipcs finally pilled me https://t.co/nXhweLvtja