Serum is a decentralized cryptocurrency exchange built on the Solana blockchain. In this article, as Kriptokoin.com, “What is a serum?” We will answer the question. In addition, we will touch on other questions about the project.
What is serum? What does it do?
Serum is a DEX built on the Solana blockchain. The serum is one of the first major projects to be built on Solana. It can work with other cryptocurrencies, including Bitcoin and Ethereum. Unlike other DEXs, Serum has order book based trading like centralized cryptocurrency exchanges. It can handle 50-65,000 transactions per second, which is the current TPS of the underlying Solana Blockchain.
Serum has an integrated on-chain order book similar to the one you use on Coinbase and Binance, rather than offering another perspective on the AMM (Automated Market Maker) model. This feature also enables cross-chain asset trading.
Using Ethereum to host an on-chain order book is prohibitively expensive, as every interaction with the order book is a costly transaction and oracle query. Therefore, the AMM model sets the rules when it comes to Ethereum-based DEX protocols.
Serum overcomes the cost barrier by using Solana, a faster and cheaper blockchain compared to Ethereum. Serum chooses to build on Solana, delivering an extremely fast DEX experience that costs less than $0.00001 per trade per use.
What is SRM coin?
SRM is an SPL token on the Solana blockchain and an ERC-20 token on the Ethereum blockchain. It is used for staking in Serum’s DeFi ecosystem, specifically the Serum DEX. Staking SRM is required to run a validator node for Serum DEX. It can be staked to reduce transaction fees on DEX. 1 million SRM tokens can also be converted into a MegaSerum (MSRM) and vice versa.
How does the serum work?
It is important to note that Serum DEX is still in development and how it works will be affected by its changing role in Project Serum’s future ecosystem. There are three basic mechanisms underlying DEX.
The first is Solana’s SPL token standard, Serum’s interoperability protocol, and Serum’s SRM cryptocurrency.
Serum DEX uses smart contracts with built-in economic incentives to allow users to securely exchange assets between different blockchains. This is done by requiring both parties involved in the swap to provide some margin to execute a swap.
What is serum? How to get SRM coins?
The serum is currently traded on numerous cryptocurrency exchanges. People who want to invest in the project should open an account in one of the exchanges where the project is traded. The exchanges where Serum is traded are listed as follows: Binance, OKX, Bybit, FTX. Users who want to invest in the project should open an account on one of these exchanges.
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