Solana Serum: Critical Areas for Improvement to Avoid Becoming Lost Causes
Solana\'s ecosystem holds immense potential, and at its heart lies Serum, a decentralized exchange (DEX) aiming to revolutionize asset trading. Enter Serum, a Solana-based decentralized exchange seeking to reinvent the way assets are traded in the decentralized economy. Their “central limit order book” a fully on-chain system, offering a level of transparency and control unheard of in many other DEXs. But whispers of "lost cause" have begun to circulate. To avoid this fate, Serum and the Solana network need critical improvements. There are a couple of reasons why both the coins have not been able to get back on their legs.
Key Challenges Facing Serum\'s Revival
While built on the powerful Solana blockchain, enabling speed and efficiency, Serum faces several hurdles. With the Solana network, Serum can offer a lightning-fast speed of up to 65,000 transactions per second. Serum aims to solve these problems by using a “continuous order book” structure that can handle deeper liquidity, larger trades, and allows limit orders. Unlike AMM’s. Here’s a breakdown of areas needing urgent attention:
1. Revitalizing Exchange Trade Volume:
The exchange trade volume on Serum, for starters, is has witnessed a concerning decline. Boosting liquidity and attracting active traders are crucial for Serum\'s survival. A stagnant exchange is a dying exchange.
2. User Adoption and Integration:
A key component that has arguably been a cornerstone of Solana’s successes thus far would be Serum, a protocol that allows builders in Solana to build upon its framework. However, fostering wider adoption is critical. I do see a problem for an app who doesn’t hook up to serum as it limits their access to the network’s liquidity and potential trading opportunities.
3. Maintaining On-Chain Orderbook Integrity:
Enter Serum, a Solana-based decentralized exchange seeking to reinvent the way assets are traded in the decentralized economy. Their “central limit order book” a fully. Another significant advantage of having an on-chain orderbook is that they make it impervious to manipulation and offer complete transparency. Maintaining the integrity and security of this orderbook is paramount.
4. Solana Network Stability:
Solana was selected for its performance and technical innovations, allowing it to achieve low transaction latency (by blockchain standards), high throughput, and low fees. However, past network instability issues have impacted user confidence. Addressing these issues is critical for Serum\'s long-term viability.
Serum\'s Potential: Why It Still Matters
Despite the challenges, Serum offers a unique value proposition. Serum solves that problem by pooling all liquidity together at the cheapest possible and fastest route. Sam Bankman-Fried explains why FTX decided to launch a decentralized exchange on Solana versus Ethereum, which supports the vast majority of non-custodial. Its on-chain orderbook provides a level of transparency unmatched by many AMMs. By addressing the challenges outlined above, Serum can still become a leading DEX within the Solana ecosystem and beyond. Failure to adapt, however, risks it becoming a forgotten experiment.