Cryptocurrency exchange platform FTX is developing a decentralized exchange (DEX) on the Solana blockchain. The Serum DEX will kickstart the decentralized finance (DeFi) ecosystem on the Solana blockchain that is much more scalable than Ethereum.
Serum has cross-chain compatibility, enabling it access to liquidity on dApps built across other blockchains such as Ethereum.
Sam Bankman-Fried, the CEO of FTX, took it to Twitter to reveal that the company intends to launch a decentralized exchange (DEX) platform on the Solana blockchain. Serum DEX will have a central limit order book; however, the exchange will remain completely trustless.
The news comes after FTX announced in a Medium post that the exchange had listed SOL, the native cryptocurrency of the Solana blockchain. FTX is now offering various services for SOL trading, including “spot, perpetual, and dated futures.”
FTX is the second major centralized exchange developing a DEX with Binance being the first. However, Binance’s DEX saw little activity as most DeFi activity took place on the Ethereum blockchain.
Solana has emerged as another ‘Ethereum killer’ project. However, this project might pack a punch. The Solana blockchain is said to be capable of processing more than 50,000 transactions per second. An astonishing figure when compared to Ethereum’s capability of processing 15 transactions each second.
Solana is a highly scalable blockchain that enables Serum to run an order-book on-chain, further increasing the DEX’s liquidity. The exchange will be providing a bitcoin proxy token that will trace the value of Bitcoin on the Solana blockchain.
Projects such as Kin that initially launched on Ethereum are now planning to migrate to the Solana blockchain due to its scalability.