Drift Deploys Enhanced AMM with Dynamic Pricing
In early February 2026, Drift Protocol deployed its Enhanced AMM with Dynamic Pricing update alongside Refined Cross-Margin Liquidations improvements, building on the V3 overhaul launched in December 2025.
Enhanced AMM
The new AMM introduces dynamic pricing that adapts to market conditions:
- Real-time spread adjustment — spreads tighten during normal conditions and widen during volatility
- Inventory-aware pricing — the AMM adjusts prices based on its current position to encourage balanced flow
- Multi-oracle support — prices sourced from Pyth, Switchboard, and other Solana oracles for maximum accuracy
Refined Cross-Margin Liquidations
The updated liquidation engine improves capital efficiency:
- Partial liquidations — only the minimum necessary portion of a position is liquidated
- Cross-margin benefits — profitable positions offset losing ones before liquidation triggers
- Lower liquidation penalties — reduced fees for liquidated users
V3 Context
These updates build on Drift's V3 upgrade from December 2025, which delivered:
- 10x faster execution engine
- Multi-collateral account support
- Improved market making infrastructure
Competitive Position
As the leading Solana-based perpetual exchange, Drift continues to innovate on the AMM model while competitors adopt orderbook architectures. The enhanced AMM aims to provide orderbook-quality pricing with the simplicity and resilience of an automated market maker.