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
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

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.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.