Serum Exchange Review - Featured Image - CoinGyan

Serum (SRM) Exchange : Complete Review

The Serum is a DEX, i.e., a decentralized cryptocurrency exchange operated by Serum Foundation. The foundation is composed of individuals having diverse experience in cryptocurrencies, DeFi, and virtual currency trading. The Serum project’s objective was to resolve the issues present in decentralized finance like- speed, multichain support, usability, and centralization.

So in this article, you will get to explore various topics like-

What is Serum?

 

Serum Exchange- CoinGyan

Do you know about the FTX exchange? Well, it is an innovative and one of the best cryptocurrency trading platforms available in the market today, and the development team behind the FTX exchange is the same team that has developed the Serum. Serum provides a DEX platform to its users, which is fast and renders support to various chains, order books, wrapped coins, and stable coins. Although you should know that the leading DeFi platforms are based on blockchain technology, a lot of them have a centralized ecosystem in today’s date.

For example, many platforms are based on the smart contract, but they can be taken advantage of, and the stored funds can get stolen. Also, such kind of platforms makes use of centralized oracles (that renders price feeds) to communicate with the traditional world. This is where the Serum helps to fill the gap. Everything is decentralized on the Serum platform, which makes it cheap and fast, and secure. It also extends the support for cross-chain trading without affecting the speed and performance. Another interesting fact that you should know is that Serum has been made on the Solana (SOL) blockchain, capable of executing more than 700,000 transactions per second. However, at present, Serum can handle around 50,000-60,000 transactions per second, which is still an excellent number compared to other platforms.

Core Advantages of Serum

Serum offers a lot of advantages in comparison to the other competitors in the same space. You can have a look at them below-

SPEED & COST

Decentralized finance has collected immense popularity in the cryptocurrency arena, but it doesn’t mean that it is free from drawbacks. Most of the DeFi platforms are slow and expensive today. You can take the example of the Ethereum network. Hence, the centralized exchanges still have the edge over DEX. However, Serum can eliminate this drawback of the DeFi ecosystem as it is here to provide the users with speedy and low-cost trading services.

CROSS-CHAIN SUPPORT

There are various kinds of cross-chain programs like Thorchain and atomic swap that implement different protocols. However, most of them have one factor in common, i.e., a little bit of centralization. It would work on the presumption that users are honest, whether it is an oracle or a council of token holders. Some provisions can help to prevent bad actors, but it is still not reliable. However, Serum can eradicate this problem as it provides a speedy DEX having cross-chain support that does not need oracles or tribunals. The assets can be easily swapped amid different chains via Serum.

INSPIRING USER INTERFACE

Decentralized exchanges typically have clunky user interfaces that have a lot of scope for improvement. They still do not match the UI characteristics of centralized exchanges. However, if you will take a walkthrough around Serum DEX, you will realize how easy it is to navigate the features and access various other options. The Serum has all the essential tools for the users assigned and placed at appropriate places on the platform.

SRM TOKEN

The serum network has its native currency known as SRM. The SRM holders can avail the advantage through discounted trading fees and much more. The SRM can be staked on the Serum DEX as well.

A DECENTRALIZED ORDER BOOK

The serum protocol has a decentralized order book which allows the orders to get automatically matched. As such, the traders get to exercise complete authority over their trades. The serum protocol is a dedicated DeFi protocol, and even though a fully-decentralized protocol is computationally comprehensive, Serum can still function smoothly because of Solona’s robust capabilities.

Digital Currencies Supported

In terms of the number of coins and trading pairs, Serum still lacks behind because it still has many digital currencies to cover. At the time of writing this post, the Serum has 17 coins and 28 trading pairs that comprise digital assets like-

To check the complete list, you can refer to this CoinGecko link.

Trading Fees

Serum provides users with competitive trading fees, and if you are using SRM, you will be able to avail 60% discount on trading fees. You can refer to this below-shared image to understand the fee structure of Serum-

 

Serum Cryptocurrency Wallets

SRM is based on the Solana blockchain, and Solana is a recent project in the digital asset environment. Hence, there are not too many options to store SRM tokens as such.

Serum Exchange Crypto Wallet

However, if you like mobile wallets, your best option to store the tokens will be the Coin98 app. You can also use the Sollet.io web wallet. Both these wallets can provide you with options to access the Serum DEX.

Price analysis of Serum Cryptocurrency

At the time of Serum IEO (Initial Exchange Offering), the SRM was trading at over 15 times its IEO price within the first 12 hours. The IEO price was 11 cents USD. The price continued to climb up in the expectation of the launch of Serum DEX.

Serum Exchange Prices- CoinGyan

 

Within a few days after the launch, the SRM token touched its highest point, around 4$USD. Although the price has retracted over the last couple of months, it seems that the average price is 1.20$USD.

How to use Serum DEX?

 

All it takes only four easy steps to get started with using Serum. In the first step, you will have to create an SOL wallet and submit funds. In the second step, you will have to connect the SOL wallet to Serum. In the third step, you can trade, and in the final step, you can withdraw the funds. Let’s analyze these four steps in detail.

1: Create SOL Wallet First

You can create a wallet on Sollet.io, which will store your Solana Program Library (SPL) tokens. However, you will have to copy down and store your recovery phase. After that, you will be able to access the option for choosing a password, which is highly recommended to establish foolproof security. Just click on the “create wallet,” and the SOL wallet will be created.

2: Deposit Funds

For depositing funds, you will need some SOL tokens with you that can be procured from FTX or Binance. You will have to click on your wallet and then click on the “receive.” This will allow you to use the QR code or copy the deposit address. Please remember that you will have to send only SOL tokens to the address and not SPL tokens.

3: Convert to SOL Tokens

You can use MetaMask to convert native ETH into native SOL. To do this, you can open up the ETH tab and then click on- “Connect to MetaMask.”

4: Create SPL Address in Wallet

If you have SOL tokens in your wallet, then only you will qualify to include other SPL addresses in it because it costs SOL to add the tokens. You can click on “+” to add another SPL address, and after that, the pop-up window will appear on the screen, which will allow you to add SPL tokens like SRM and wrapped tokens like ETH.

You can also add your token manually if it is not listed on the Popular Token list through the “Manual Input” tab by submitting the token’s mint address. Once you have added an address, then you will be able to deposit tokens via several ways like-

  • Depositing ERC-20 tokens and then converting them into SPL tokens.
  • Depositing the tokens to FTX exchange and then withdrawing them from the FTX to deposit into Sollet. FTX will automatically wrap the digital asset in an SPL token to be used with Serum.

Is Serum Safe to Use?

It would help if you remembered the fact that Serum is a DEX, and unlike centralized exchanges, there is no requirement to transfer the funds to the exchange to get started with cryptocurrency trading. However, it will be useful to maintain some safety precautions like storing your password and recovery phase to your Sollet wallet. You can adopt other safety measures like creating a backup of your data, encrypting your wallet, using antivirus software, using 2FA if possible, and having a security breach plan. Also, the DEX’s are not administered by one entity. So if you commit any mistake like sending your digital assets to the incorrect address, then there will be nobody out there to help you.

Other things apart, since Serum is a very recent project, it will be challenging to identify loopholes in the security system at such an early stage. However, since the team behind this project is experienced expertise, the probability is high that no loose end will be present in the platform.

Conclusion

Many users believe that decentralized exchanges are not meant for beginners because of their advanced infrastructure. Even Serum exchange had this disadvantage during its early stage. Still, soon it got rid of this problem by providing helpful resources and easy-to-understand technical documentation through Serum Academy. The user-interface of Serum exchange is very similar to FTX, so the users who are already aware of using FTX will not encounter any trouble while using Serum. However, the users who are used to centralized exchanges will need additional time to understand the UI/UX of Serum, but it is not a subject of enormous concern.

When getting started with decentralized exchanges, most of them require users to fulfill an additional step of setting up the wallet. The same goes for Serum exchange because, to use this exchange, the users will have to set up a Sollet Wallet. But the important note here is that it is not a complicated process to set up a Sonnet Wallet, and it consumes only around 5 minutes.

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The most important thing is that cryptocurrency trading on Serum exchange is remarkably faster and robust. The platform is evolving for the better, and more exciting features are to be expected from Serum. You will have a great overall experience of using Serum, but if more cryptocurrencies and trading pairs are added to the platform, it will expand the existing user base.

 

Jatin

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