Serum (SRM) Things You Need To Know Before Investing

Riya KapoorApril 23, 2022

2 minutes read

Table of Contents

What Is Serum (SRM)?

The Serum (SRM) is a decentralized exchange (DEX) ecosystem that brings unprecedented speed and low transaction costs to decentralized finance (DeFi).

The SRM is the only high-performant DEX designed around a fully on-chain central limit order book and matching engine. Ecosystem partners can compose with SRM’s on-chain order book to share liquidity and power their trading features for institutional and retail users.

In light of the popularity of DeFi and the growth of DEXes on Ethereum, users and developers are limited by high gas costs and slow transactions. SRM aims to resolve these traditional problems of DeFi and issues of centralization, low capital efficiency, and liquidity segmentation.

The SRM utility and governance token enable users to receive discounts on protocol fees and voting rights; 100% of exchange fees flow back to SRM via buy-and-burn, staking rewards, and ecosystem grants.

Who Are the Founders of Serum?

The Serum is an open-source project created by a consortium of partners, including FTX, Alameda Research, and the Solana Foundation.

The SRM Foundation currently supports its development, backed by a group of experts in cryptocurrency, trading, and decentralized finance. The project borrows much of its design and thought leadership from many firms in the cryptocurrency and finance industries.

What Makes SRM Unique?

SRM DEX’s on-chain central limit order book and the matching engine provide liquidity and price-time-priority matching to traders and composing projects. Users benefit from this exchange model through the ability to choose the price, size, and direction of their trades. Composing projects benefit from SRM’s existing architecture, bootstrapped liquidity, and matching service.

How Many Serum (SRM) Coins Are There in Circulation?

Serum’s (SRM) circulating supply is at 54,861,111 SRM as of August 2021, with a maximum supply of 10,000,000,000 SRM.

How Is the Serum Network Secured?

The SRM is built on Solana and is completely permissionless. Solana is a web-scale blockchain that can reach 50,000 transactions per second and 400ms block times. This is achieved through a verifiable delay function called SHA 256 hash chain. SRM’s design ensures that DeFi can compete against centralized services.