HomeREVIEWSerum Review: Changing the Rhythm of Defi Exchanges

Serum Review: Changing the Rhythm of Defi Exchanges


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The serum is a fully functional decentralized derivatives exchange with trustless cross-chain trading all at a high speed and very low transaction costs. We will be talking more about the Serum project in this review.

Serum backed by the stars in the Defi Space

The advisors’ panel of Serum includes some notable figures in the Defi space. Among them, there are Robert Leshner, the founder of the Compound protocol, and Sam Bankman Fried, the CEO of cryptocurrency exchange FTX and Alamada research. Further, there are prime members like Long Vuong, the founder, and CEO of Tomochain, Dan Matuszewski, the principal, and co-founder of CMS, and other prominent figures.

Serum Partnered with the big firms

The noteworthy partners include FTX, Solana, Multicoin Capital, Genesis, 3Commas, kyber network, Coin Gecko, Alamada research, and the list continues. Among them, the firm Alameda Research employs experts from Wall Street and Silicon Valley to provide liquidity in crypto markets around the world. Further, Coingecko can assist in the analysis of the digital market for Serum.

Serum is built on the highly scalable Solana blockchain

Solana is known for its significantly higher speed and lower costs than older blockchains. It can settle up to 65000 transactions per second and costs less than a penny to send a message. Thus building on the top of the Solana blockchain, Serum will have the speed, cost-effectiveness, and UX that users expect from a centralized exchange.

A tokenization scheme looking into the future

The native token of Serum is SRM. The total number of SRM tokens minted is 10 billion. Out of these only, 10% will be supplied during the launch. The rest of the 90% will unlock within a span of the next 6 years. This shows the underscoring commitment of the ecosystem to Serum.

SRM receives 100% of exchange fees, such as buy and burns or staking reward payments, from exchange fees.

Out of the total supply, 20% will be for the team and the advisors, 22% for the project contributed 27% for partners and collaborator funds, and 27 % for ecosystem incentive fund. Looks like there is something for everyone and the underlying principle asks for a commitment from the stakers.

Serum supports cross-chain swaps

The cross-chain protocol can be applied to any transaction where the target blockchain (e.g. BTC) is proof-of-work and the base protocol (e.g. ETH) is significantly faster than the target blockchain.

By allowing cross-communication, smart-contract creation, and redemption, users will be able to seamlessly transfer assets between Bitcoin, Ethereum, and Solana. This will give the current Defi ecosystem easy access to the speed and efficiency of Solana.

Comes with a decentralized automated order book

Users have control over their trading through the automated on-chain limit order books offered by Serum. Serum implements order books between tokens; and since Serum supports cross-chain swaps, it also has ETH and BTC order books. The order books are not centrally controlled and can be accessed by third parties automatically and programmatically.

Serum already has demand in the crypto space

There are many ongoing projects on the Serum platform be it in the field of Defi, gaming, NFT, Data analytics, and other infrastructures. Some of the notable ongoing projects are Atrix, Copper Finance, Defi and, Star Atlas, Coin 98, Soft flare, Ledger, Phantom, and many more.

Solves the stable coin Dilemma

A good example of the power of the Serum ecosystem is the ability to create a permissionless, decentralized BTC token on Solana and Ethereum.

Another potential project on Serum is SerumUSD, a model for a diversified stablecoin in Serum. The proof and sending are still centralized in many Defi platforms. Even though it can’t solve the issue fully, serum USD can do better than just averaging a basket of stablecoins- it takes the median of one.

The Final verdict

Thus we are at the end of the Serum review. The Serum project is still in the third phase of its development. But it shows a huge potential to change a lot of prevalent practices in the Defi platforms. Serum allows a diverse range of Dapps and users to share middleware in one place.

The serum makes it possible for trading apps to share a single source of liquidity making it accessible for both retail and institutional users. It also ensures high transaction speed with low fees. It is often termed as the future of Defi.

Also, the year-by-year token supply is another feature that makes it stand out among the rest. At the end of this review, we want to add that you need to do your research on Serum. This review is not a piece of financial advice but to impart education on the Serum project. But we hope you can gather enough information that may help to make your future decisions.

Soumen Datta
Soumen Datta
Soumen is a freelance writer. Crypto and NFT enthusiast and researcher

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