Serum is a project developed to provide solutions to speed and cost problems for decentralized finance (DeFi) projects. The serum was launched on 31 August 2020 by Sam Bankman-Fried. The native cryptocurrency of this protocol is SRM coin.
Serum was one of the first major open source projects built on Solana. It can work with other cryptocurrencies, including Bitcoin and Ethereum. It is used to stake 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. Solana is a web-scale blockchain capable of reaching 50,000 transactions per second.
SRM coin has a wide range of uses. If we list these usage areas:
- Many crypto currency pairs can be traded with the instructions specified in Serum Academy.
- Investors can also convert 1 million SRM moins into a MegaSerum (MSRM) and vice versa.
- It can be staked to reduce transaction fees on DEX.
- Staking SRM can be used to run a validator node for Serum DEX.
- It is used to stake in Project Serum’s DeFi ecosystem, specifically the Serum DEX.
The features of the serum project are as follows:
- The decentralized exchange (DEX) Serum is built on the Solana blockchain to give investors an edge in speed.
- Focusing on decentralization and respecting the privacy of users, Serum does not require Know Your Customer (KYC) verification.
- Built on the Solana blockchain, Serum DEX also supports the ERC-20 standard. In this way, it enables token transfers and other transactions between chains to be carried out easily.
- Serum enables approximately 50 thousand transactions per second by using the Solana network to reduce congestion and lower transaction fees.
As in every project, the Serum project has some advantages and disadvantages. Let’s examine these:
Advantages
- Since it can be staked, it offers investors the opportunity to earn passive income.
- The Serum project has had numerous collaborations, notably Chainlink (LINK) providing pricing oracles for its DEX within the ecosystem.
Disadvantages
- SRM coin price may be negatively affected by the declines in the Solana network.
- SRM coin is a risky investment choice due to its high volatility.
- Regulations for the cryptocurrency and DEX industry are critical in the price of SRM coin.
SRM coin, which is on its way to become one of the most popular altcoin projects, is listed by more and more exchanges every day. These exchanges are: Binance, Bybit, KuCoin, Gate.io, Kraken.