After Drift: Hardening Keystone’s Strategy and Execution Layer
We want to share a clear update on how Keystone Finance has responded to recent developments around Drift and what this means going forward.
What Happened
Keystone’s Neutral and Defense strategies previously relied on perpetual markets for funding capture and hedging. While risk controls were in place, these strategies depended on external execution venues.
Recent events reinforced a key point:
Infrastructure risk must be minimized, not just managed.
What We Changed
We’ve taken the following actions:
- Removed Drift as a dependency across all strategies
- Paused perp-based execution where required
- Transitioned capital into staking and lending positions
- Began integration with Jupiter Perps for future execution
Capital preservation remained the priority throughout.
What This Means
Short Term
- Neutral and Defense strategies are operating in a reduced-risk mode
- Capital is primarily deployed in staking and lending while perp execution is reintroduced
- Yield may be lower temporarily, but with significantly reduced exposure
Long Term
- Strategies will operate on more robust, Jupiter-aligned infrastructure
- Reduced reliance on any single external venue
- Tighter control over execution and capital deployment
- Improved resilience during periods of market or protocol stress
Design Principle
This update reflects a core principle in Keystone’s design:
Strategies should remain robust even if underlying infrastructure fails.
Rather than optimizing purely for yield, Keystone prioritizes:
- controlled execution environments
- limited external dependencies
- predictable behavior under stress
Going Forward
Keystone will continue to focus on:
- resilient strategy design
- transparent on-chain execution
- alignment with core ecosystem infrastructure
These changes strengthen the protocol and better position Keystone for long-term capital.
We appreciate the continued support.