Background and History
Serum was launched by Project Serum in August 2020, backed by FTX and Alameda Research, to address inefficiencies in existing decentralized exchanges. Built on Solana, Serum offers a scalable, efficient platform for decentralized trading. Its unique on-chain order book provides a more traditional trading experience compared to AMM-based DEXs, enabling better price discovery and more complex trading strategies. Since its launch, Serum has become integral to the Solana DeFi ecosystem, attracting numerous developers and projects.
Key Features and Technologies
On-Chain Order Book
Serum’s fully on-chain order book replicates the functionality of centralized exchanges while retaining decentralization benefits. It allows users to place limit and market orders, offering greater control over trading strategies. This feature also supports advanced trading options, such as custom order types and market depth, enhancing the trading experience.
Cross-Chain Swaps
Serum supports cross-chain swaps through integration with the Wormhole protocol, allowing users to trade assets across different blockchains. This expands the range of available assets on Serum, making it a versatile platform for DeFi traders. Cross-chain swaps are designed to be secure and efficient, leveraging Solana’s interoperability with other major blockchains.
Usage and Applications
Serum is widely used within the Solana ecosystem for various DeFi activities, including trading, liquidity provision, and staking. Traders favor Serum for its fast transaction speeds and low fees, enabling efficient trading of diverse assets. Serum’s infrastructure also supports other Solana-based DeFi projects, solidifying its role as a critical piece of Solana’s DeFi landscape.
Governance Token: SRM
Overview
SRM is the governance token of the Serum protocol, allowing holders to participate in decisions shaping the platform’s future. SRM also provides fee discounts, incentivizing its use within the ecosystem.
Tokenomics
SRM has a maximum supply of 10 billion tokens, with allocations for ecosystem development, staking rewards, and liquidity incentives. This distribution is designed to ensure the Serum ecosystem’s long-term sustainability and growth, with gradual token emissions to encourage continued participation.
Governance Structure
Serum’s governance is decentralized, with SRM holders able to propose and vote on protocol upgrades, fee structures, and other critical decisions. This ensures that the platform evolves in line with community interests. Users can also delegate their voting power through platforms like Vota.fi, allowing them to earn additional rewards or influence governance outcomes.
Notable Events
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August 2020
Serum launched, introducing the first decentralized on-chain order book on Solana.
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September 2020
SRM token was listed on major exchanges, boosting visibility and adoption.
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2021
Integration with Wormhole protocol enabled cross-chain swaps, expanding Serum’s functionality and asset support.
Relevant Metrics and Data
Serum consistently maintains high trading volumes, with its on-chain order book attracting significant liquidity. Key metrics include daily active users, trading volumes, and the total value locked (TVL) in Serum-related projects. The SRM token’s market capitalization growth reflects the platform’s increasing adoption in the DeFi space.
