Serum DEX is a Solana-powered decentralized cryptocurrency exchange. It provides cryptocurrency swapping services. It's a permissionless protocol that offers an on-chain, asset-agnostic order book. Serum DEX crypto exchange speeds are based on the Solana network.
Project Serum is a collaboration between the crypto trading platform FTX and Solana. It does not require users to provide ID verification. While there are no national restrictions, some regions may be geo-blocked from accessing the service. You can see the current Serum DEX trade volume and popular trading pairs above.
Serum DEX differs from traditional centralized cryptocurrency exchanges (CEXs). While there is no Serum DEX spot market in the conventional sense, it runs as a token swap. Although it was built on Solana, it also supports ERC-20 tokens and is interoperable with the Ethereum network.
Users can buy the platform's native asset, Serum (SRM). It can be used as an SPL token on Solana or an ERC-20 token on Ethereum. SRM is used for network utility and governance, and holding it can grant discounted fee rates. You can learn more about the Serum DEX crypto price and history here.
Another asset tied to the Serum DEX crypto exchange is the MegaSerum (MSRM). It cannot be bought directly. Instead, users must hold at least 1 million Serum to obtain one MSRM token. The asset is considered hyper deflationary as it depends on the limited supply of SRM. The supply is limited to 1,000 coins, and the max SRM supply is 10 billion tokens.
Serum is suitable for both individual and institutional traders. Unlike many decentralized platforms, the Serum DEX cryptocurrency exchange doesn't use an automated market maker (AMM). Instead, it relies on an on-chain order book that gives traders more flexibility regarding the order size and pricing.
By using an asset-agnostic order book, the platform enables a broad range of tradeable assets, including options and futures. Users can choose from more than 60 Serum DEX trading pairs. However, fiat currencies are not supported.
Serum DEX crypto fees are processed on the Solana network. Solana is known as one of the fastest blockchains, offering near-instantaneous trading. Users must have a balance of at least 0.1 SOL in their SPL wallets at all times to process transaction fees. Solana also charges a rent fee of ~0.2 SOL for the first trades of a pair.
By default, 20% of all net fees are towards Project Serum and the GUI hosting services, while the remaining 80% are bought back and burned to maintain the deflation of SRM. All rates are for taker fees only. The fixed rate is 4 bps, and fees are incurred once the order is executed.
SRM and MSRM holders can be eligible for discounted Serum DEX exchange fees. To qualify for the first discount tier, the user needs 100 SRM, while the top tier (6) requires 1 MSRM. The fees can be reduced to 3 bps.
In addition to the Serum DEX cryptocurrency exchange, users can access other features that improve the platform's performance or provide financial operations. As a permissionless protocol, Serum is governed by the users who can participate in the DAO activities by holding the SRM token.
SRM can also be staked to allow users to earn passive income. Users who contribute to the liquidity pools receive a portion of the trading fees for the selected trading pair. They also earn LP tokens which are also available for staking.
About the Company
The Serum DEX crypto exchange was launched in August 2020. It was built on the Solana blockchain by the developers from FTX, one of the largest centralized exchanges. No further information is available about the founders of Project Serum. The headquarters are in New York City, NY.
The platform's native SRM was listed around the time of the exchange's launch. Within 12 hours, the token's value increased by 1,500%, and the Serum DEX volume of the asset reached $350 million.
Serum is one of the earliest and biggest projects by Solana. It was reported in April 2022 that the Serum cryptocurrency exchange accounted for about a third of all program executions in the network.
The development team is also working on the Bonfide protocol. Its goal is to bridge the Serum DEX crypto exchange to the broader Solana ecosystem.