Project Serum aspires to become a fully-fledged financial ecosystem that brings unprecedented speed and very low transaction costs to the world of Decentralized Finance (DeFi). At its core sits a decentralized exchange (DEX) which is designed around a fully on-chain central limit order book and matching engine.
Partners of Serum’s ecosystem can compose with this on-chain order book to share liquidity and match orders for both retail and institutional users.
Serum was originally founded by Sam Bankman-Fried (SBF) – CEO at one of the leading centralized crypto exchanges FTX, as well as other ecosystem partners, and is deployed on the Solana blockchain.
During BreakPoint 2021 in Lisbon, CryptoPotato had the chance to talk to Edward (Ed) Zuo, who is a senior advisor at Project Serum. We talked about the current status of Serum, some challenges, as well as what lies ahead for the project.
The Order Book that Will Power a Superstructure of Financial dApps
“Project Serum provides the underlying liquidity infrastructure for applications building on Solana that need trading-related features that could benefit from Serum’s central limit order book.” Explains Zuo. “And It’s one of the first order book-based decentralized exchanges to be deployed entirely on-chain.
The idea behind Serum is to provide the fundamental primitives that bring about a fully functional, centralized exchange experience to all of DeFi.
Serum is unique because you can build a DEX on it. You could build multiple DEXes on it, and because of the composability of DeFi, users can compose with the markets on Serum to unlock incredible synergies and bootstrap liquidity for their protocols.
You can imagine what happens when more and more of these applications compose with the same set of software – You can imagine how big that pool of shared capital becomes. This model, which is so simple yet elegant, can allow for this massive scaling up of DeFi.
Now, you have devs building dApps. You don’t need to reinvent the wheel every time they make a new protocol, hence, you don’t need to figure out how to get order matching working. You can now focus on the other stuff that’s critically important for your project, whether that’s building a risk engine or focusing on marketing or other partnerships or whatever.
So with Serum, it’s able to power a whole superstructure of financial dApps on Solana that can easily talk to each other – over time, we hope to quantify how much time it’s saving and how convenient this is for developers.
Importantly, it’s built on Solana, which brings about features like sub-second settlement and extremely cheap transaction costs. Whatever you build on Serum, you can achieve the user experience people are familiar with on centralized exchanges.”
Bring Solana and DeFi to the Rest of The World
Serum was launched in late 2020, aiming to be the first decentralized exchange with fast…
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