Serum is a decentralized exchange built on top of the 0x protocol. It’s designed to be fast, intuitive, and secure for trading cryptocurrencies.
Serum is a decentralized exchange that allows anyone to trade any cryptocurrency. It’s the fastest DEX in DeFi. Read more in detail here: serum defi.
- What is the definition of serum? Serum is (or aspires to be) a fully decentralized trading and derivatives DEX that provides all of the key trading features that centralized exchanges provide, but in a trustless environment.
- If you’re interested, IEO is on Friday, August 7th. This is not a paid advertisement.
Liquidity mining, also known as yield farming, has been a huge success in the DeFi sector in 2020. However, in terms of speed, usability, and completeness, most DeFi-based decentralized exchanges (DEXs) still lag behind centralized exchanges. Serum promises to be the answer.
DEXs have come a long way since they were first introduced. We now have enough liquidity, as well as acceptable interfaces, thanks to liquidity miners.
These factors, however, are insufficient to attract power traders, who engage in high-volume trading on a daily basis.
DeFi DEXs, on the other hand, have become havens for speculators looking to profit from yield farming. There’s nothing wrong with it at all. However, until it eliminates its present limitations, DEXs will never be able to completely compete with, much alone exceed, centralized exchanges.
Comparison between Crypto DeFi vs Crypto CeFi DeFi as a whole has 600 thousand users. 35 million people use Coinbase. Binance has between 13 and 15 million users.
And Serum is coming to alter DEXs by providing the same level of service as centralized exchanges but in a decentralized environment. Yes, they claim to be “pure DeFi,” which means they’re more decentralized than any other DeFi platform currently available.
FTX, a major crypto exchange and derivatives platform, will debut the Serum project.
What is Serum (SRM) and how does it work?
Serum bills itself as a “completely decentralized” derivatives DEX with cross-chain trading, leverage, and a comprehensive suite of trader tools. It operates at the same pace and provides the same user experience as conventional institutional-grade exchanges.
Serum will be built on the Solana scalable blockchain, but it will also be compatible with the Ethereum blockchain. Additionally, Bitcoin’s cross-chain functionality will be supported.
One distinguishing aspect of the protocol is that, unlike other DeFi protocols, it is not built on the Ethereum blockchain. The community has both good and negative reactions to this. Many people would applaud the project team for selecting a more scalable blockchain than Ethereum today.
However, a sizable portion of DeFi users are staunch Ethereum advocates. The fact that, with the exception of the Lightning Network, the top 36 DeFi platforms are native to Ethereum demonstrates this.
So, what exactly is Solana?
Because of its scalability, Solana was selected for the Serum ecosystem. It’s a high-throughput blockchain that can handle transactions at up to 50,000 per second (tps). This is incomparable to Ethereum’s current capability of 15 tps.
Logo of Solana Blockchain
Solana’s network scales without the need for sharding. Instead, it adds Proof of History, a new kind of consensus mechanism that works in tandem with Proof of Stake. Proof of Replication is also used to “account for the expense of maintaining the blockchain history.”
This, however, does not explain how it scales that high without sharding. Not for a non-developer, at least. One thing is certain: there will always be trade-offs.
23) Finding pareto optima, making the greatest choices you can, and continuing to discover methods to expand the DeFi ecosystem’s capabilities without compromising its fundamental ideals are all part of this.
July 21, 2020 — SBF (@SBF Alameda)
No blockchain is without flaws. And it’s probable that Solana has swapped one feature for another. And, based on the above, the founder and CTO attempted to establish the best balance of usability and scalability.
What functionality did Solana have to give up in order to reach 50,000 tps?
Whatever the case may be, it is critical that certain DeFi protocols experiment with blockchains other than Ethereum. We never know, Serum may have had something in mind when they chose Solana. After all, in terms of transaction capacity, this network might challenge Visa.
Solana’s original asset is the SPL token, which is based on the Serum token (SRM).
What Is Serum’s Unique Qualities?
Serum has a number of benefits over existing DeFi methods. Let’s have a look at what makes this platform so special.
DeFi’s “core,” according to Bankman-Fried, should be decentralized and trustless. Despite this, he sees a lot of DeFi systems making concessions because centralization is too good to pass up.
Serum, on the other hand, is devoid of all of that. It does not rely on oracles for centralized price feeds, nor does it need the employment of trusted courts. There are “strong methods” to achieve trustless trading, according to Bankman-Fried.
One aspect of the system’s decentralized operation that isn’t defined is how it works. How are they going to obtain the pricing feeds if they aren’t going to utilize oracles? In order to operate, a DEX must have price feeds fed into the system in some manner.
There has to be another method, but there isn’t any information about it yet. Once we get the solution, we will update this article.
Low-cost and quick
The DeFi movement has aided Ethereum in gaining broader business acceptance. It has increased the value of ETH as well as the gas costs. The network has suffered some congestion as more individuals utilize Ethereum-based DeFi protocols.
As a consequence, transactions have slowed and gas prices have increased.
Serum, on the other hand, promises to be free of all of these issues. In fact, it is on par with controlled exchanges like Binance and Bitfinex in terms of speed. Furthermore, its transaction costs are far lower than those of ETH.
All of this is feasible because to the Solana blockchain.
Institutional-grade user interfaces and user experiences
It is not only as quick and inexpensive as centralized exchanges, but it also provides a similar degree of user experience (UX). Order books, cross-chain swaps, leverage, and other trading instruments should all be available in Serum. There are additional options for no-limit orders, bids, and offers.
These individuals need a full set of trading tools, which most DEXs do not provide. Serum is a welcome addition to DeFi since it is the first DEX to provide the degree of service that power traders need.
Features of DEX Serum
The Serum DEX has a number of features that aren’t seen in other DeFi systems.
Through AMM, Uniswap promoted trading without order books (Automated Market Maker). AMM is a good replacement since it enables people to trade, but it has a few drawbacks. A professional trader, on the other hand, would still need order books.
Why? You have complete control over the price, size, and direction of your transaction. These choices are essential for someone who makes a career trading in order to have as much control over the variables as feasible.
Because Ethereum is too slow and costly to perform the required activities, most DeFi systems do not use order-books. Fortunately, Serum is powered by Solana, which can handle thousands of bids and offers at once.
Swaps between chains
Users will be able to trade ETH, ERC-20 tokens, BTC, and SPL tokens, among other things, thanks to Serum’s cross-chain connectivity. It also differs from previous cross-chain swap protocols in that it does not depend on third parties to manage the swap.
Trading with Leverage
Because FTX is also a derivatives platform, it’s likely that its DEX, Serum, will provide leverage trading.
Serum supports bespoke crypto contracts, allowing users to take leveraged positions in any product that the system supports. Furthermore, these contracts may be tokenized and transferred throughout the network.
Users may conduct leverage trading in a completely public and non-custodial environment using Serum, all while getting excellent performance.
Logo of the SRM Token
Serum, like other exchanges, has its own token standard.
The Serum ecosystem’s native asset is SRM. It may also be used as a governance token with a restricted governance style. Because the Serum ecosystem is decentralized, the majority of its components are unchangeable.
Some factors, like as future fees, may be changed through SRM token voting without posing major security concerns.
All of the Serum DEX’s net fees will be used to purchase and burn SRM tokens on a regular basis, reducing supply and increasing demand and market value.
Use Cases for SRM
- SRM holders get a 60 percent discount on all costs.
- Using the platform to pay for trading fees
Simply stated, MegaSerum (MSRM) is a stack of 1 million SRM tokens. According to their website, it is a “rare item that provides greater usefulness to core Serum believers.”
Staking is a feature of the Serum system that enables users can make money by holding SRM and MSRM tokens. Staking is the act of putting your tokens on the line in order to participate in transaction validation.
You must have at least 10 million SRM and 1 MSRM to qualify as a validator. You’ll be able to earn a share of the fees for every cross-chain transaction you offer insurance for after you’ve staked your tokens.
Tokens that have been wrapped
Token wrapping capabilities exist in the Serum ecosystem, allowing it to generate wrapped tokens such as SerumBTC and SerumUSD.
Wrapped tokens are representations of underlying tokens that are not native to the blockchain on which they are presently housed. WBTC, an ERC-20 token that contains BTC that is locked behind an Ethereum smart contract, is a popular wrapped token.
SerumBTC is an SPL and ERC-20 token that is completely trustless.
A dollar is also represented as SerumUSD, a decentralized token. According to the website, it is a “solution to the onchain stablecoin problem,” which is a stablecoin that is linked to the US dollar but does not need a bank account.
It’s unclear how this is accomplished. Their whitepaper explanation may as well be nonsense unless you’re a developer.
My Opinion on Serum
Serum seems to be an exciting new addition to the DeFi ecosystem. But, more importantly, it may be the answer that allows DEXs to really compete with centralized exchanges.
Coinbase alone has 35 million users, whereas DeFi as a whole has yet to reach 1 million. If Serum can deliver, they will have a huge chance. So Serum has piqued my interest.
Despite being a staunch Ethereum fan, I’m pleased FTX selected Solana as the Serum protocol’s foundation layer. In addition, SRM is classified as an ERC-20 token.
It’s fantastic that so many projects are coming up with novel solutions to the issues that crypto confronts today. Let’s see whether Serum can deliver on its promise of a groundbreaking DEX.
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Serum is a decentralized exchange that allows users to trade assets in a peer-to-peer fashion. The serum staking is an important part of the DEX and will help you earn more money.
Frequently Asked Questions
Is SRM a DeFi?
No, SRM is not a DeFi.
What is serum DeFi?
DeFi is a term used to refer to decentralized finance.
What is SRM serum?
SRM stands for Super Regenerative Mutation. It is a serum that gives the users body the ability to heal itself at an accelerated rate, allowing them to recover from injuries faster than normal humans.
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