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ALT3 Capital's Complete Guide to Funding ETH on Drift Vault

This guide is a supplement to the description of the Drift Vault strategy by ALT3 Capital: https://teletype.in/@alt3capital/05_RU

Currently we only have an active Vault for the ETH token. we will publish Vaults for USDC, BTC and SOL token In the next two weeks

You can follow updates in the Telegram channel dedicated to Vaults: Link to the Telegram channel

Introduction

ALT3 Capital has launched its proprietary delta-neutral strategies in Drift Vaults and now anyone can join and earn income.

Key advantages of the strategy:

  • Market neutrality: The strategy is independent of market movement.
  • Security: Funds are stored in the user's wallet, ensuring independence and security.
  • Target return: 10–15% per annum.
  • Option to capitalize on the selected asset: For examplе when staking ETH, income is also accrued in ETH.

In this guide, we'll explain how to fund our Vault using the Ethereum (ETH) token.

Content

Important information for beginners

Drift Vaults are automated strategies on the Drift decentralized exchange that allow you to invest in professionally configured strategies without having to manually manage your positions. Essentially you deposit funds into the strategy and it then works for you.

Cross-chain bridges are tools that allow you to move assets between different blockchains. For example, to use an Ethereum (ETH) token on the Solana network, it must be "transferred"—in other words, the original ETH is locked on the Ethereum network, and its equivalent is issued on Solana as a wrapped token.

This approach allows to use of the same assets  in secure and transparent way across different blockchains where they don't exist natively

Wrapped tokens are tokens that are "mirror" versions of the original assets, issued on a different network.

They are backed 1:1 by the underlying asset and mirror its price.

Example:

  • WBTC is a wrapped Bitcoin that exists and is used on the Ethereum network.
  • WETH on Solana is a wrapped ETH issued via a cross-chain bridge.

Drift is a decentralized protocol running on the Solana blockchain. It only accepts assets in the form of specific wrapped tokens compatible with the protocol's internal architecture.

To contribute/ to add assets such as ETH or BTC to Drift Vaults strategies, they must first be converted to a supported format. This is done through Portal, a cross-chain bridge built on the Wormhole protocol. Portal locks the original tokens on one network (e.g., Ethereum) and issues their wrapper on another (in our case, Solana), which is then used in Drift.

Wormhole is a cross-chain messenger, an infrastructure that allows the transfer assets between different blockchains (Ethereum, Solana, BNB Chain, etc.).

Portal is a specific token bridge built on Wormhole technology.

A good analogy would be that Wormhole is like a shipping company that provides transportation services, while Portal is a specific transportation route built on this shipping company, specializing in delivering goods between specific cities (blockchains).

Summing up:

  • Wormhole is a protocol and communication layer (infrastructure).
  • Portal is a token bridge that uses this layer (infrastructure) to transfer assets between networks.

It is worth noting that the Portal has been operating since 2021, providing users with the opportunity to securely convert assets, and its high Total Value Locked funds (TVL), exceeding $2.5 billion as of early April, confirms the trust of both retail investors and large capitals.

Source: https://defillama.com/protocol/portal?bridgeVolume=false&usdInflows=false&fdv=false&tvl=true&events=false

It steadily processes (passes through) a trading volume in the range of $ 20-25 million еvery 24 hours, and for the entire time this figure has already exceeded $51 billion, which is an important aspect in the context of stability and security.

Source: https://wormholescan.io/

Furthermore, Wormhole actively engages independent companies to conduct security audits at various stages of the project's development – ​​it has now undergone 29 independent code audits from the following companies:

These checks cover everything from smart contracts on different blockchains (e.g., Ethereum, Solana) to integrations and bridges like Portal. This ensures that potential vulnerabilities are immediately identified and addressed early.

Wormhole also requires all connected chains to maintain their own security measures such as open source code and independent audits. To verify this, you can review their security protocols and auditor reports here.

Wallets used in the funding process

Two wallets will be key to funding Vault:

  1. MetaMask is a cryptocurrency wallet that allows interaction with Ethereum-supported blockchains (such as Arbitrum).
  2. Phantom  is a cryptocurrency wallet that allows interaction with applications and projects on the Solana blockchain.

Both wallets meet all security requirements:

  • Private keys are stored only on the user's device, not on third-party servers.
  • The wallet codes are available on GitHub (MetaMask / Phantom), allowing independent developers to verify security and make improvements. This significantly increases security.
  • No transaction goes through without user approval (your confirmation is required for every transaction)

By downloading this wallet to your PC or laptop, you can be completely confident that your funds are under your complete control. The main thing is to follow basic security rules, such as securely storing your seed phrase, avoiding connections to suspicious websites and only downloading the wallet from the official website – you'll find a link to this resource above.

Methods for funding Drift Vault with ETH tokens

Since we only have ETH available in Vault for now, we'll explore this option. There are several funding methods and steps, depending on what assets you already hold.

Method One: Traditional. Briefly:

  1. Buy RUB → USDT
  2. Exchange USDT → ETH
  3. Withdraw ETH to your wallet
  4. Convert via the ETH → WETH bridge on the Solana network (Portal)
  5. Deposit to Vault

Method Two: Simpler, no bridges required. Briefly:

  1. Buy USDC on an exchange
  2. Withdraw to your wallet on the desired network
  3. Exchange USDC for ETH on DEX
  4. Deposit to Vault

P.S. If you've already purchased ETH on the Ethereum network (ERC20) and it's stored in a MetaMask wallet, the first method (from the "Convert via the bridge from ETH to WETH on the Solana network (Portal)" section) is suitable for you.

Depositing Russian Rubles

To deposit fiat money (rubles) into Drift's Vault, the first step is purchasing the required token. You can do this on trusted centralized exchanges. Let's look at Bybit as an example.

Step 1: Register on ByBit

  1. Go to the official ByBit website.
  2. Enter your email address, create a password or register with a Google account
  3. Confirm your registration with the code sent to your email, and then complete KYC (Know Your Customer) verification on the exchange itself.

Step 2: Top Up Your Balance

  1. Go to the "P2P Trading" section in the main menu.
  1. Select USDT as the currency to buy and set the "Buy" option.
  2. Enter the amount you want to deposit and select the bank from which you will send rubles.
  3. Select a highly rated seller (as shown in the screenshot below), enter the purchase amount and click "Buy."

4. Pay for the purchase using the seller's bank details in your banking account.

5. Confirm the payment in ByBit and wait for the USDT to be credited to your exchange wallet.

Step 3: Purchasing Cryptocurrency

After depositing USDT, you need to purchase Ethereum (ETH) on the spot market.

To make a purchase:

  1. In the menu, select "Trade" → "Spot."

2. Select a trading pair (ETH/USDT).

3. Select the order type: market (executed instantly at the current market price).

4. Enter the amount and click "Buy."

5. The funds will then appear in your "Single Trading Account" under the "Assets" tab.  To withdraw the tokens to another wallet, they must be transferred to the "Financing" account.

6. To do this, select the asset (in our case, ETH) in the "Single Trading Account" and click "Transfer." Then, in the "To" field, select "Funding."

We do this for a reason, so below you can learn how to properly withdraw funds and deposit them into a Vault that supports ETH.

Depositing via ETH tokens

Note: If you plan to conduct a test transaction first, please keep two important points in mind:

1. The minimum deposit amount for Vault is at least $150 in ETH.
2. Additionally, a network commission is charged - the total cost of conducting all transactions for a full circle (deposit and withdrawal) can be $30–$50.

Step 1: Transfer the ETH token on the Ethereum network (ERC20) to a hot wallet, such as MetaMask.

To make the transfer go to your "Funding" account on the exchange, select the ETH token and click the "Withdraw" tab. select ERC-20 in the "Network Selection" window — this is the most cost-effective way to withdraw in terms of fees for subsequent exchanges.

If you're withdrawing via something other than ERC-20 or Arbitrum or Base ( for example) you'll need to add them to MetaMask first so you can see your assets.

Click on the networks in the upper left corner (left image) and add the necessary ones using the "Add" button (right image):

Click "Add" and confirm adding the network.

Step 2: Go to the Portal bridge

Select the token you want to withdraw in the top window, : ETH on the ETH (ERC-20) network (left image). Then in the bottom window, select WETH on the Solana network (right image). Be extremely careful – be sure to compare with the screenshots below:

Note: we will receive the desired wrapped WETH (Wormhole) token on the Solana network  upon exiting Portal , which we will use to fund the Vault. However, its contract is different from regular WETH, as it was processed through Portal (a bridge based on Wormhole).

Your WETH contract from Wormhole should look like this: 7vfCX…63voxs

Once you've selected the desired pair, connect the wallets. If you haven't yet installed the second wallet, you can do so by following this link: Phantom.

During creating your account, be sure to securely store your seed phrase (12 words) – this is your login password.

First, connect MetaMask. Then your Solana wallet (in our case, Phantom)

Step 3: Exchange one asset for another.

You need to enter the exchange amount in the "Amount" window. the most profitable route is automatically selected . Then confirm the transaction by clicking "Confirm transaction."

Note: If you receive an error when attempting to transfer from one wallet to another, try the following:

1. Refresh the page.
2. Reconnect both wallets.
3. Make sure you have enough ETH to cover the fee.
4. Try again in a few minutes.

As a result, we receive wETH in the Solana network to our Phantom wallet.

Step 4: Go to the pool and deposit your assets there.

1. Go to the Vaults page and connect the wallet where you just received your wETH

At this point you'll need SOL tokens to pay fees on the Drift exchange itself. Purchasing them is the same as purchasing ETH, the only difference being that instead of the ETH/USDT pair, you select the SOL/USDT pair on the spot market. This process is described in more detail in "Step 3: Purchasing Cryptocurrency."

After you purchase SOL tokens, you need to transfer them to your Phantom wallet. To do this:

  • Go to the "Funding" section on the exchange.
  • Select the SOL token and click the "Withdraw" tab.
  • Enter SOL In the "Network Selection" field  and in the "Wallet Address" field, enter the Phantom wallet address where you currently hold your wETH on the Solana network.

2. Once you have funds in your wallet to pay the fee, click "Deposit" and confirm the transaction by clicking "Confirm Deposit," having first specified the amount of tokens you wish to deposit into the pool.

If the "Deposit" button remains inactive even though you have available funds, try the following:

1. Refresh the page.
2. use a computer if you were previously logging in on a phone (if it is possible)
3. try using an iOS/macOS device (iPhone, iPad, Mac) - If it is available

If you want to withdraw funds from this pool, go to the "Withdraw" tab → Enter the amount → Confirm the withdrawal by clicking "Request Withdraw."

Note: Withdrawals can take up to 24 hours. After you submit your request, you will need to return to the website shortly and collect the tokens yourself.

If an error occurs while withdrawing funds from Vault to your wallet, try the following:

1. Refresh the page.
2. Reconnect your wallet.
3. Leave the page open and wait 5-10 minutes.

you'll receive back the same tokens you originally sent to Vault—wETH. Any earnings accrued while your tokens are in Vault will be included in the withdrawn amount.

If the withdraw button is inactive or shows a zero balance available for withdrawal, try the following:

1. Refresh the page. If you're withdrawing through the Phantom wallet's internal browser, you should refresh the page within the wallet.
2. Wait 5-10 minutes.
3. If refreshing and waiting don't help, try disconnecting and reconnecting your wallet to the platform.

If the withdrawal button is active, but the transaction itself fails, try refreshing the page or splitting the withdrawal amount into several parts.

To convert tokens back to the original asset (ETH), we'll need the Portal bridge again. The process is the same as depositing (only in reverse): you'll convert wETH from the Solana network to ETH on the Ethereum network. It looks like this:

Note: If you receive an error when attempting to transfer from one wallet to another, try the following:

1. Refresh the page.
2. Reconnect both wallets.
3. Make sure you have enough ETH to cover the fee.
4. Try again in a few minutes.

 If you need to withdraw funds from your wallet to an exchange, do the following

  1. Go to your MetaMask wallet and ensure Ethereum Mainnet is selected as the network. Then, select the asset itself – Ethereum.

2. Click the "Send" button to proceed to the transfer section.

3. Enter the wallet address to which you plan to withdraw fundsIn the "Recipient" section.

Important: Double-check that this is the address that accepts ETH on the ERC20 network. You can find this address in your Funding account on the exchange. To do this:

  • Go to the "Funding" section.
  • Find the Ethereum asset and click "Deposit."
  • Select the Ethereum (ERC20) network for the transfer and copy the address.

4. Select the amount to withdraw After pasting the wallet address. Then click "Continue" and confirm the transaction.

The funds will be transferred to your exchange, and you can then manage them as you wish.

Depositing via USDT/USDC on the exchange

Note: If you plan to conduct a test transaction first, please keep two important points in mind:

1. The minimum deposit amount for Vault is at least $150 in ETH.
2. There is also a network fee- the total cost of all transactions (deposits and withdrawals) for a full round trip can be $30–$50.

Step 1: Purchase USDC if you don't have it.

Note: The easiest and most universal method is via USDC, so we'll use that as a basis.

If you only have USDT, you can purchase USDC with USDT on the spot market:

It's important to note that for the final deposit into Vault, we'll also need SOL tokens to pay the fee on the Drift exchange. Therefore, it's best to purchase them in advance at this stage—approximately $5–$10. Purchasing is done in the same way as with USDC - the only difference is that instead of the USDC/USDT pair, you choose the SOL/USDT pair on the spot market.

After this, the USDC will appear in your "Single Trading Account" under the "Assets" tab. However, you need to transfer them to your "Funding" account to withdraw the tokens to another wallet.

To do this, select the asset (in our case, USDC) in the "Single Trading Account" and click "Transfer." Then, in the "To" field, select "Funding."

Step 2. Transferring USDC to a Solana Wallet

Let's clarify: in Phantom (and other Solana wallets), all tokens (including USDC) have the same address—you'll need this for the next step.

Go to your "Funding" account on the exchange, select the USDC token, and click the "Withdraw" tab To make the transfer. In the "Network Selection" window, select SOL, and in the "Wallet Address" window, enter the address mentioned above.

Do the same with previously purchased SOL

Be sure to check that all funds have arrived in your wallet within 5-10 minutes of sending.

To be sure, refresh the wallet interface a few times—sometimes the balance display may take a while to update. Only then proceed to step three.

Step 3. Exchange USDC for the desired version of the wrapped token

Go to the Jupiter exchange and connect the wallet to which you just sent the USDC.

Select the USDC token in the "Selling" window

In the "Buying" window, select ETH (Portal). In this case, the ticker will simply be listed as ETH, but make sure the Ether (Portal) prefix is ​​specified.

Next, enter the amount of USDC you want to exchange and click the "Swap" button.

This will add the required wETH to your Solana wallet. You can convert it back to your preferred format at any time if needed – its value always remains tied to the underlying Ethereum (ETH) value.

Step 4: Go to the pool and deposit assets

Go to the Vaults page and connect the wallet where you just received your wETH.

Click "Deposit." Then confirm the transaction by clicking "Confirm Deposit," after specifying the amount of tokens you wish to deposit.

If the "Deposit" button remains inactive even though you have available funds, try the following:

1. Refresh the page.
2. use a computer if you were previously logging in on a phone If it is possible
3 try using an iOS/macOS device (iPhone, iPad, Mac). (if it is possible)

If you want to withdraw funds from this pool, go to the "Withdraw" tab → Enter the amount → Confirm the withdrawal by clicking the "Request Withdraw" button.

Note: Withdrawals can take up to 24 hours. , you will need to return to the website shortly and collect your tokens After you submit your request.

If an error occurs while withdrawing funds from Vault to your wallet, try the following:

1. Refresh the page.
2. Reconnect your wallet.
3. Leave the page open and wait 5-10 minutes.

You will eventually receive back the same tokens you initially sent to Vault – wETH. Any income accumulated while your tokens were in Vault will be included in the withdrawn amount.

If the withdraw button is inactive or shows a zero balance available for withdrawal, try the following:

1. Refresh the page. If you're withdrawing through the Phantom wallet's internal browser, you'll need to refresh the page within the wallet.
2. Wait 5-10 minutes.
3. If refreshing and waiting doesn't help, try disconnecting and reconnecting your wallet to the platform.

If the withdrawal button is active but the transaction itself isn't successful, try refreshing the page or splitting the withdrawal amount into several parts.

We'll need the Jupiter exchange again To convert tokens back to the original asset (USDC), . The process is the same as depositing (only in reverse) -  you're converting wETH from the Solana network to USDC on the Solana network. It looks like this:

Conclusion

DeFi is no longer an experimental field – today it's a mature financial sector with trillions of transaction volumes and rapidly developing infrastructure. ALT3 Capital's strategy implemented through a pool on Jupiter allows investors to effectively diversify their assets, earn stable returns, and minimize market risks within the Solana ecosystem.

With support for stablecoins and leading digital assets (USDC, ETH, BTC, SOL), you can reliably scale your capital using cutting-edge DeFi tools.

Subscribe to our Telegram channel and stay updated on our strategy: https://t.me/alt3vaults_ru

Our Strategies (Vaults)

If you have any questions or difficulties depositing funds, please contact our manager – we are always ready to help

About ALT3 Capital

Contact Information

Additional information

Reliability and security are key priorities for ALT3 Capital. We work exclusively with proven protocols that have passed independent audits and have open source code. This ensures maximum transparency and reduces risks for liquidity providers.

Drift Protocol

Jupiter DEX

ALT3 Capital
Yesterday, 19:40
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