Do you know Serum (SRM)?

We are living in the era of cryptocurrencies, which aspire to replace the conventional monetary model (fiat) in the coming years, although even today they represent only about 2% of the capitalization around investment in financial products in general, however this world of decentralized digital money continues to grow and attract more people willing to invest in them.

Likewise, another form of access to cryptocurrencies is in full process creating a revolution in the cryptosphere, I am referring to Decentralized Finances (DeFi,) a sector that stands as the most important of this industry because it provides financial services without the intervention of a third party such as banks or any other non-bank financial institution.

DeFi being a sector so in vogue, it has also experienced a large increase in the number of projects that offer decentralized services, a way to snatch a bit of that space that the Ethereum blockchain platform, which concentrates almost all DeFi projects that exist in the cryptosphere, the problem lies in the fact that the more use concentrates this platform the more expensive the fees become and more congested.

Serum (SRM) emerges as a more efficient, faster and cheaper answer to decentralized exchange (DEX) based on the Solana Blockchain. Serum aims to provide a scalable and liquid decentralized exchange (DEX) for derivatives, solving some of the structural vulnerabilities and limitations in the existing DeFi space.

The main head of this project is Sam Bankman-Fried, who founded this FTX cryptocurrency derivatives exchange in 2019.Serum's whitepaper was published in July 2020 and the project went live on August 30, 2020 being considered as one of the first major projects within Solana, although this does not limit its layer ility to operate on the Ethereum and Bitcoin network. As of today Serum has around 30 different cryptocurrency exchanges, where only USDT or USDC is traded.

Serum's decentralized exchange and its ecosystem offer high speed and low transaction costs for decentralized finance (DeFi). According to its website, Serum offers sub-second trading and settlement speed and $0.00001 per transaction.

According to Serum Whitepaper, there are seven main ingredients of Serum DEX: Orderbooks, Cross-Chain Support, native SRM token, full Ethereum and Solana integration, physically established cross-chain contracts, SerumBTC and SerumUSD.

The main feature of this project is provided by its technology called Serum DEX, an account with decentralized automated limit chain order books that allow users to submit orders with addresses, prices and sizes, giving them control over their operations, even working with ETH and BTC order books independently, which are made possible by cross-chain support. These order books are not centrally controlled. They are fully programmatic and automatically match orders between third-party users.

They serve as Serum's primary pricing source. A fee is also charged for each transaction that goes into a buy/burn of SRM, Serum's native currency. Holding SRM gives you up to a 50% discount on all Serum fees.

Another highlight of Serum is its inter-chain support, a feature that allows users to exchange assets between chains without trust, something that other protocols are not able to support given their reliance on trusted parties to manage the exchange.

Unlike Balancer or Uniswap, Serum is fully interoperable with Ethereum and Bitcoin thanks to the technological capabilities of the Solana platform, as all assets used on the platform are SPL-based tokens, including its native SRM token. SPL is a token standard on Solana like ERC20 on Ethereum.

Serum's native utility token called SRM is based on SPL from its own ecosystem. SRM also exists as an ERC20 token on the Ethereum blockchain. Holding SRM provides many benefits to users. As mentioned above, trading through Serum's order book charges a fee that goes towards a purchase/burn of SRM. SRM tenure provides a 50% discount on all trade fees in Serum.

According to their Whitepaper, 10,000,000,000,000 SRM tokens have been minted and there will never be more. The total circulating supply at launch was approximately 10% and will grow by 15% annually. As of today SMR holds a value of 0.0001445 BTC (US$ 7.93).

It is important to note that the purpose of this article is purely informative, therefore it should not be considered as a form of investment advice or recommendation. Please note that this type of investment is highly risky, therefore it is necessary to do a lot of research before making a decision.

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