Blockchain

Newly Launched Decentralized Exchange runs on Solana Blockchain

Users of DeFi now have a new option for swapping among tokens if they are willing to leap away from Ethereum to Solana blockchain.

Serum launched a new decentralized exchange market named Swap; it is a DeFi platform developed to run on the Solana blockchain. The Serum also uses the Solana blockchain to achieve quick transaction speeds and lower transaction costs than blockchains like Ethereum.

To kick start the DEX, Swap will offer liquidity providers more prizes in the form of the airdropped Serum tokens disseminated on November 25. Serum tokens are used to pay transaction fees on exchanges powered by Serum infrastructure.

The ongoing launch is part of Solana’s continuous DeFi play. Early this month, it shipped Wormhole, Solana-to-Ethereum bridge, to get DeFi projects advantage of its nascent blockchain. The previous week, it has become the third blockchain that added the USDC stablecoin, which was stated as “the lifeblood of the DeFi ecosystem.”

Swap is one of the first DeFi apps that launched on a different blockchain, namely Solana. Solana is recently in beta testing before the full main net launch; it is also offering block times of one second, it means that it can process and settle thousands of transactions per second.

Launched last July, Serum provides infrastructure decentralized exchanges and added several dollar-pegged stablecoins that allow DeFi transactions to be denominated in the US currency, it includes Tether and USDC. Where the former decentralized exchanges have used on-chain order books that counterpart buy and sell orders, Swap is the first automated market-maker (AMM) released on Serum, like Uniswap on Ethereum.

The involvement of AMMs to Serum has helped show that the platform is versatile as Ethereum and offered several advantages in cost and speed that may take years to compete with. When the fees start to rise again as interest in DeFi continues to grow, it can lead to rapid growth for Serum’s developing Swap exchange.

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