Overview of DeFi Protocols in the Serum ecosystem

DeFi Hub, the heart of the ecosystem

Most DEX uses AMM mechanisms based on mathematical models, such as “x*y=k”. The advantage is that there is no need to depend on traditional market makers to provide liquidity. Of course, the disadvantage is also conspicuous, which is that when there is a lack of liquidity there will be a large “sliding price”, the lack of more advanced trading instruments, adversely affected by impermanent losses.

Serum solves this problem through the scalability of the Solana blockchain, which allows users to transact based on the “Orderbook” mechanism. In addition to executing Limit orders, the transaction speed is high and the processing fee is low and makes trading with high frequency deployable.

From the descriptions from Serum and Sam, it is clear that Serum is not just a Dex Orderbook but will be a DeFi Hub – an ecosystem of many products and a hub for several other DeFi Protocols.

Raydium – AMM adds liquidity to Dex Serum

Raydium is also a DeFi Platform focused on Dex, but contrary to serum direction, Raydium focuses on the AMM part more to create liquidity for the entire ecosystem.

The mathematical model currently used by Raydium is x*y=k, which is quite similar to other popular AMM’s. But the unique point is that Raydium solves the problem of liquidity fragmentation of AMM.

Currently the liquidity of AMM protocols is locked in many different AMM protocols, leaving many people without the best liquidity and they are fragmented.

Raydium solves this problem by allowing liquidity from Raydium’s Liquidity Pool to be pulled back to the Orderbook Serum to achieve the Liquidity Sharing effect thereby achieving better liquidity goals.

Ray Tokens are also used as incentives to encourage deposit users into important liquidity groups.

Bonfida – Front end of serum

Bonfida currently has the following features:

Bonfida Serum GUI: Bonfida DEX host GUI from Serum, providing users with a better trading experience.
Serum API: Provides data storage for all serum transaction data.
Serum integration terminal (Dashboard): Bonfida integrates all the components of the Serum ecosystem, including front-end serum, transaction protocol (Swap), lending,…
Bonfida trading set: Users can use technical indicators, trading strategies and auto trade,…
Solible: Solana NFT trading platform.

Maps.me – Bring Non-Crypto Users to DeFi

Maps.me is an offline mapping app. Since its launch, the app has attracted 140 million users. Users can preload the map before traveling. In this way, even if they run out of local Internet traffic, they can also query maps in the app.

In addition to itinerary planning, Maps.me users can also book accommodations and restaurants in the app. However, since it is cooperating with a third-party payment platform, the fees are quite high.

For every $100 spent on travel abroad, passengers incur a loss of about $17, including money transfer fees and third-party platform fees.

The solution of the Maps.me is to build an in-app wallet, which will allow users to book accommodation, book restaurants and pay for meals directly in the wallet without going through any intermediary platform. This process reduces the cost of “Exchange Losses”.

In addition, the Maps.me will also integrate with Oxy, allowing users to trade tokens or mortgage assets into Oxygen’s Pool to obtain “passive income” or borrow other assets to maximize the efficiency of the capital.

Oxygen – DeFi prime brokerage

Oxygen is a DeFi prime brokerage, a loan and loan service designed for “institutional investors” Oxygen inspired by similar products in the traditional financial sector. Oxygen is lending based on a “fund structure” similar to P2P.

Oxygen’s application scenarios include:

Create passive income: Users deposit money and earn interest from them.
Borrowing: Users can borrow assets from someone else’s pool and pay interest to that pool.
Trading: Users can trade with serum dex.
Synthetic Assets: The user’s assets in the Pool are used as Collateral to trade more complexly structured Synthetic Assets.

From the above application situations, Oxygen is like a one-stop transactions DeFi, equivalent to Compound + Synthetix + Uniswap. The user’s money only needs to be placed on the Oxy platform to meet the needs of lending, collateral, Synthetic and transactions.

The strengths of the serum ecosystem

Meet the possibility of expanding in the future

Serum allows traders to use the same mechanism as on CEX and avoid slippage during the trading process (orderbook). In addition, the current design also allows Dex Serum to develop derivative products in the future and the ability to expand more easily as demand increases.

Optimize the trading experience

In fact, serums are designed to target the group of organizational users so for those who are not familiar it can cause discomfort. Bonfida was born to improve this.

Bonfida optimizes the interface, connects data to the API, provides advanced trading tools (Chart, Tradingview, Bot…), integrates all components of the Serum ecosystem, with the ultimate goal of providing convenience and efficiency to users.

Integration of liquidity across the chain

While Bonfida optimizes the trading experience, Raydium integrates the liquidity of AMM into the Orderbook of serum Dex. Thereby creating liquidity for the entire serum ecosystem.

In addition, Raydium does not stop at Solana. Sam has previously proposed to the SushiSwap community to build SushiSwap into Solana.

If the proposal is adopted, through Solana’s cross-chain mechanism and incentive of liquidity mining, it could attract the liquidity of other blockchains into the Serum, thus strengthening the Serum ecosystem

Real users (Non-Crypto users)

Maps.me join the Serum ecosystem, introducing deFi’s advantages to Maps users on the one hand. On the other hand, it’s the introduction of a large number of users (non-crypto) into the Serum ecosystem.

This is really important, even if the market has grown to the billions of dollars it is today. If the project strips away the incentives involved, the actual number of users will be significantly reduced.

The goal of Maps is to attract actual users who are attracted by the convenience of the DeFi Maps wallet.

According to the data provided, the number of Maps users is up to 140 million people, let’s do a simple calculation, if just over 1% of users (equivalent to 1.4 million users) use the product, the Serum ecosystem can gain a huge number of users.

This means better liquidity and a wider ecosystem, and Solana’s scalability is perfectly capable of accommodating so many users.

Maximize the efficiency of capital use

On the other hand, Oxygen is likened to a combination of “Compound + Synthetix + Uniswap” that allows users to meet the needs of lending, collateral, Synthetic Assets and trading on a single platform.

Limitations

At this stage, the Serum ecosystem is still in its infancy, it is difficult to see how its idea will evolve.

In addition, Solana’s smart contract development language is Rust, not the programming language used by Ethereum Dapp developers in the past, which is also difficult to attract human resources.

Wallet is also doing a problem to mention, because Solana is so new that many teams when start building wallets on which they can choose different decoders that lead to the status of a Key 2 to multiple wallets (importing a Seed Phrase on Sollet to one wallet, on another wallet platform to another wallet).

The idea behind the serum.

It is not difficult to notice that serum products are not designed individually but are integrated overlapping with the center is Serum Dex.

According to Sam, the key lies in the three words “combination.” He thinks it’s a lot harder to build something completely new, instead building a set of products that can be combined to leverage each other’s strengths and form a more sustainable ecosystem.

The advantage of this is that the construction projects on which can take advantage of the original platform bring, the original foundation will be strengthened and provide better liquidity.

In the case of Serum, it has DEX (Orderbook), AMM, Lending Pool, and many other aspects. Any application can automatically use these resources and benefit from them without starting from scratch.

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