FTX to Launch 'Scalable' Decentralized Exchange in Weeks

Building on the Solana blockchain means the new platform's operations are less restricted than those on Ethereum, the firm says.

AccessTimeIconJul 27, 2020 at 11:30 a.m. UTC
Updated Sep 14, 2021 at 9:36 a.m. UTC

Established derivatives player FTX is building an alternative exchange for the growing decentralized finance (DeFi) space on top of highly scalable chain Solana.

  • Dubbed Serum, the initiative claims to offer a scalable and liquid decentralized exchange (DEX) for derivatives, solving some of the structural vulnerabilities and limitations in the existing DeFi space.
  • Solana is said to be able to process 50,000 transactions per second, compared to Ethereum, which can currently handle 15.
  • Being highly scalable means Serum can run an order book on-chain, improving the exchange's liquidity, according to the white paper.
  • Serum will be fully interoperable with Ethereum so it can tap into the existing DeFi space, which saw its market cap break the $4 billion boundary over the weekend.
  • The exchange will also offer a bitcoin proxy token, allowing users to trade the largest cryptocurrency's value on the Solana blockchain.
  • Other projects like Kin, which started out on Ethereum, have looked at migrating over to Solana because of the better scaling potential.
  • Since Saturday, the price of Solana's native "SOL" token has almost doubled from $0.99 to $1.90, according to CoinGecko.
  • Parallel to Serum, FTX announced it had listed SOL on its centralized exchange.
  • An FTX spokesperson told CoinDesk it'll be the users who decide the products traded on Serum.
  • The spokesman added that Serum could go live sometime in the next couple of weeks.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Three Arrows Paper Trail Leads to Trading Desk Obscured Via Offshore Entities

As Three Arrows Capital collapsed under market pressure, its much-lesser known trading desk, TPS Capital, remained active, sources say. But a complex ownership structure might frustrate creditors' efforts to collect.

CoinDesk - Unknown
2
CoinDesk - Unknown
June Was Bitcoin’s Worst Month Ever

Plus, European crypto regulation comes into view.

CoinDesk - Unknown
3
CoinDesk - Unknown
What Traders Are Saying About Bitcoin's Biggest Monthly Loss in 11 Years

Poor macroeconomic sentiment, fears of inflation and systemic risks from the crypto market pushed the cryptocurrency below 2017’s highs.

CoinDesk - Unknown
4
CoinDesk - Unknown
Three Arrows Capital Files for Bankruptcy in New York Tied to British Virgin Islands Proceeding

A British Virgin Islands court ordered Three Arrows' BVI branch into liquidation earlier this week.

CoinDesk - Unknown