Project Serum is a brand new decentralized exchange (DEX) for the decentralized finance (DeFi) sphere from the same team that created FTX Exchange. It is said to test the boundaries of DEXs using a non-Ethereum blockchain.

Built on Solana, Serum was created to solve the centralized vulnerabilities existing in the current DeFi space in the same trustless and permissionless way that DEX traders are comfortable with. With that being said, Serum still needs to be tested with real users first. Although the team boasts that the DEX is already functional, it hasn’t been launched as of now. But we might see Serum go live sometime in the next couple of weeks.

What is Project Serum?

Dubbed to be the next frontier, Serum is claimed to be a “pure” form of DeFi that is built on the Solana blockchain and will run on a central limit order book that is fully trustless. This makes it highly scalable, cheap, and fast.

Serum is completely decentralized down to its seed protocol. It runs on a non-custodial exchange with cross-chain trading support and no KYC required. This will offer users the same UX level comparable or even better than what centralized exchanges can currently offer. With the price, speed, and usability that Serum has, there’s no reason that customers who are used to trading in centralized exchanges wouldn’t give it a chance.

Despite being native to Solana, Serum is designed to be completely interoperable with Ethereum and Bitcoin, a huge advantage when pitted against Binance DEX or other DeFi DEXs like Balancer and Uniswap. This gives them an edge since many traders are keen to trade other cryptocurrencies besides the ERC-20 tokens that most DeFi platforms currently offer.

With this in mind, there’s a chance that Serum could eclipse other DEXs in the crypto space when it launches. It has the convenience and familiarity that a centralized exchange can offer but in a non-custodial setup. Serum also offers incentives to node operators to participate in staking from a referral system with “leaders,” inflation, and trading fees.

Key features of Serum (Image credit: Project Serum)

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