The FTX cryptocurrency derivatives exchange will launch an alternative exchange, Serum, for the growing decentralized Finance (DeFi) industry on the Solana scalable blockchain.
Serum will be a scalable and liquid decentralized exchange (DEX) that will eliminate some structural vulnerabilities and limitations in the existing DeFi industry.
The Solana blockchain is capable of processing 50,000 transactions per second. For comparison, Ethereum can process fifteen transactions. According to the White paper, due to its high scalability, Serum can manage the order book within the network, improving the exchange’s liquidity.
Serum will be fully compatible with Ethereum, so it will be able to connect to existing DeFi products. The exchange will also offer an “intermediate token” that allows users to exchange a small amount of cryptocurrency in the Solana blockchain.
Some projects, such as Kin, which started working on Ethereum, are considering switching to Solana because of better scaling. According to CoinGecko, since Saturday, the price of the Solana token (SOL) has increased from $0.99 to $1.9. FTX has also added SOL to the listing of its centralized exchange.
A FTX representative said that users will choose their own products to trade on Serum. He added that the exchange could be launched in the next couple of weeks.
Recall that in may, FTX announced the launch of futures contracts for Bitcoin hashrate, which allow traders to earn money by changing the complexity of mining the first cryptocurrency. In addition, at the beginning of the year, FTX started trading options on bitcoin.