As we mentioned in our previous post, Reasons Why DeFi Projects Will Build on Solana, the Serum project just announced they are launching a derivatives exchange built on Solana blockchain!

The Problems that Serum Will Solve

  • Speed and Usability – DeFi is slow and expensive. Current Ethereum solutions cost dollars $ to trade and minutes to clear. Most customers want snappy response times, especially when money is on the line.
  • Centralisation – There are many aspects to decentralisation that various DeFi projects have not yet conquered, whether it be the centralised team of token holders, centralised price oracles or exchange API’s.
  • Stablecoins – Serum want to build a stronger solution for value that is based off global fiat currencies
  • Orderbooks – Ethereum solutions like Uniswap are great, but they can be confusing to use and come with massive fees. They use Automated Market Making (AMM). In everyday finance, they use orderbooks to ensure there is price spread and liquidity, with the high speed Solana, Serum can offer this too.
  • Cross-Chain Support – A lot of solutions to trade BTC via Ethereum Smart Contract use an oracle to provide the BTC price. The adds an extra party and more fees.

But Serum is different, and it’s powerful. Its software enables a fast DEX; it has cross-chain support, stablecoins, wrapped coins, orderbooks, and the ability to create custom and novel financial products; and while having all of those, it’s fully decentralized. There are no oracles to centralized price feeds; no tribunals whose honesty you rely on. Serum is pure DeFi. And unlike current DeFi, it’s fast and cheap.

Serum Whitepaper

The Solutions that Serum will Deliver!

  • No Centralization, anywhere: Most DeFi protocols bottom out in a centralized oracle – often in the most crucial step, Serum doesn’t.
  • Cross-Chain Swaps: trustlessly exchange assets between chains which is in contrast to most current protocols that rely on trusted parties to administer the swap
  • A solution to the onchain stablecoin dilemma: A stablecoin that is always worth a dollar but also doesn’t rely on a bank account not getting shut down.
    • SerumUSD: a model for creating a decentralized stablecoin that would be a decentralized stablecoin that does not have a single point of failure
    • SerumBTC: a model for creating an ERC20 or Solana tokenization of BTC that would be a fully trustless BTC token
  • Orderbooks: Like the best technology from centralized exchanges, Serum will deliver a decentralized on-chain automated full limit orderbook that will give traders full control over their orders
  • Physically settled cross-chain contracts that will allow easy margin positions in DeFi on synthetic assets
  • Speed: Making trades that don’t cost a dollar to place or take minutes to clear.
  • SRM Token: the Serum token is the utility token of the Serum ecosystem that will benefit from a buy/burn of fees
  • Full Ethereum and Solana integration that will make Serum fast and efficient–all while being interoperable with the Ethereum ecosystem and ERC20 tokens

“Solana is awesome,” FTX CEO Sam Bankman-Fried told The Block, arguing that the network is faster and cheaper than Ethereum.

The Block Crypto

Serum Partner List is Huge!

  • FTX
  • Alameda Research
  • Solana
  • Genesis Block
  • Robot Ventures
  • CMS
  • Evernew Capital
  • Kyber Network
  • Sino Global Capital
  • 3Commas
  • Coingecko
  • TomoChain
  • Multicoin Capital
  • Gauntlet Network
  • 币coin
  • Factblock
  • Aleph.im
  • Folkvang.io
  • AKG Ventures

Advisor List has Massive DeFi Experience

  • Robert Leshner – Founder, Compound
  • Calvin Liu – Strategy Lead, Compound
  • Sam Bankman-Fried – CEO, FTX and Alameda Research
  • Sebastian Conybeare – Software Engineer, Alameda Research
  • Gary Wang – CTO, FTX
  • Long Vuong – Founder and CEO, TomoChain
  • Dan Friedberg – Fenwick & West
  • Clement Ip – Partner, Genesis Block
  • Dan Matuszewski – Principal and co-founder, CMS
  • Shane Molidor – Head of Business Development at BitMax

The Serum Whitepaper

You can read the full Serum Whitepaper here!

Why Did Serum Choose Solana?

Solana is a blockchain with significantly higher speed and lower costs than older blockchains. It has multiple settlement cycles per second and costs less than a penny to send a message–both orders of magnitude above existing standards.

The Solana-based Serum DEX will have the speed, cost and UX that users
expect from a centralized exchange–all while being trustless and noncustodial. And because of Serum’s full cross-chain integration, users will be able to trade BTC, ETH, ERC20s, SPL tokens (the token standard on the Solana blockchain), and more on it.

This will finally give DeFi users a fully decentralized exchange that has the experience they’ve come to expect from CeFi (e.g. centralized exchanges).

Serum Whitepaper

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