FTX Cryptocurrency Derivatives Exchange will launch Serum alternative exchange for the growing Decentralized Finance (DeFi) industry on the scalable Solana blockchain.
Serum will be a scalable and liquid decentralized exchange (DEX) that will address some of the structural vulnerabilities and constraints in the existing DeFi industry.
The Solana blockchain is capable of processing 50,000 transactions per second. In comparison, Ethereum can handle fifteen transactions. According to the White Paper , thanks to its high scalability, Serum can manage the order book within the network, improving the liquidity of the exchange.
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 small amounts of cryptocurrency on the Solana blockchain.
Some projects, such as Kin, which started on Ethereum, are considering moving to Solana due to better scaling. According to CoinGecko , the price of Solana (SOL) token has risen from $ 0.99 to $ 1.9 since Saturday. FTX has also added SOL to its centralized exchange listing.
An FTX spokesperson said users would choose products to trade on Serum themselves. He added that the exchange could be launched in the next couple of weeks.
Recall that in May, FTX announced the launch of Bitcoin hashrate futures contracts, which allow traders to capitalize on the change in the difficulty of mining the first cryptocurrency. In addition, FTX began trading Bitcoin options earlier in the year .