Missed Hanbitco x SERUM AMA? Here is your Summary!
For those who have missed it, we are sharing the the summary of the SERUM AMA held in the Hanbitco Official Telegram Room will on 2020 Sept 1 (Tue) 19:00(KST).
Q1. Can you give me a brief introduction about yourself?
A. Anthony Yoon, FTX BD and collaborator on SERUM. At FTX, I manage Korea as well as working on various expansion efforts like Europe and a recent acquisition we made — Blockfolio. At FTX, we all get involved across multiple projects and multiple roles, and we move very fast.
Q2. Please briefly introduce the SERUM project.
Earlier this year, we were speaking to a lot of DeFi projects, and started to see a lot of momentum of capital moving into the space, and innovative projects. When we were looking around at current decentralized exchanges, we saw a few issues and thought — how could we build the best decentralized exchange from the ground up? That’s how Project SERUM was started.
SERUM is the world’s first completely decentralized derivatives exchange with trustless cross-chain trading brought to you by Project SERUM, in collaboration with a consortium of crypto trading and DeFi experts. While we built the SERUM protocol, it is permissionless.
Q3. What is your main focus for 2020 and why is it important for the blockchain ecosystem?
A. Our main focus for 2020 is to build out the SERUM DEX — our goal is for SERUM to mimic a centralized exchange experience, but being fully on-chain. Our goal is to bring traders onto SERUM and give them an excellent trading experience that they can’t really find on other DEXes.
While doing this, we are building out the SERUM ecosystem through ecoSERUM — providing grants to developers who’d like to help Project SERUM build out the ecosystem. One of Ethereum’s moats is that they have a robust ecosystem built out — and one of our goals in 2020 is to bring in developers and projects to build out a similar robust ecosystem on SOLANA to support SERUM.
Q4. What products does SERUM have?
A. SERUM is a decentralized exchange — In terms of products, we launched our beta this past weekend and will be rolling out lots of new features over the next few weeks and months including tons of different markets, an on-chain stablecoin, cross-chain swaps, derivatives, and more!
Q5. What distinguishes SERUM from other competitors?
A. SERUM is the fastest on-chain dex in the world by a factor of 50. While we love Ethereum and the ecosystem, we chose to build on Solana because of two major factors: 1) The speed of Ethereum and 2) High gas fees. On Solana, we are able to enable <1 second onchain settlement> and <1 cent transaction costs>.
For anyone who’s used Uniswap or been trying to process transactions on Ethereum the last few weeks, you’ll understand why we wanted to solve some of these issues.
Another thing that distinguishes SERUM from our competitors is our liquidity; we have Alameda Research, one of the top 5 largest market makers in crypto, providing liquidity from day one. In addition, we don’t use a centralized oracle, we offer cross-chain support, and orderbooks.
Q6. Why did SERUM choose to enter the Korean Market?
A. As a DEX and foundation, we believe in the spirit of decentralization. That means we want SERUM to be widely available around the world. We know how important Korea is to the crypto ecosystem, and we believe SERUM provides a superior trading experience to all other DEXes.
Holding SERUM provides reduced trading fees on SERUM, staking rewards, ability to participate in buy and burns, and specialized governance.
Q7. (Live-Question) Is Solana receiving a lot of expectations and interest from users who use the Solana Blockchain? What do you think the future of the Solana Project is going to be like?
A. Serum is the first major project that is building on top of Solana. One of the factors in evaluating Ethereum vs. Solana (or other blockchains) was looking at the ecosystem. Ethereum has a vibrant developer community, and great tooling.
While we loved that about Ethereum, we thought the technology was not a fit for what we were looking to build: The fastest and cheapest on-chain exchange in the space. One of the things we’ve been working on very hard at Project Serum is bringing other partners into the space.
We have a lot of exciting collaborations to announce over the coming weeks; partners who will be migrating or building on top of Solana and more! We also have a grant system for builders who want to build on top of Solana / Serum — the foundation is called ecoSerum. 2% of all SRM fees on the Serum DEX go to funding this ecoSerum.
Q8. (Live-Question) Serum is understood as a completely Decentralized Exchange built on the Solana blokckchain. FTX, a well-known crypto derivatives exchange that operates Serum, claimed that Serum is 10,000 times faster, 10 million times cheaper than other DEXs. We would really love to know how this is possible.
A. One of the issues we’ve seen with Uniswap and other DEXes is that low transaction throughput can really clog the network and slow it down. We’re also gas fees that can add up to a lot of money!
What we wanted to do with Serum was to create a DEX that could mimic a Centralized Exchange as much as possible. That meant low latency, quick settlements, and very low fees.
Q9. (Live-Question) I heard that Serum’s lockup has been released for a long time. It would be good for both investors and team members if they had to succeed that long-term. What kinda plan to succeed in the future? Please let us know.
A. Haha — I see you’ve asked this question a few times. 90% of Tokens are locked up for 7 years. That means there is a 1 year lock, and a daily unlock for 6 years. 98% of all SRM tokens used for fees will be burned from the token supply, with the remaining 2% going to ecoSerum.
As you mentioned, one of the benefits of having a very long lock-up period, is that we brought on investors and partners who are committed to the long-term success of Serum. Not investors who were looking for a short-term gain to flip their tokens. We have a long-term vision for Serum DEX and the ecosystem, and are excited for all the partners who have joined us in building this out.
Q10. (Live-Question) Could you tell us a little bit more about your plans on how to expand and promote you Serum in countries where English is not the first language? Do you have any plans to grow local communities in different countries to promote Serum?
A. We have communities all across the world as a decentralized project — our whitepaper and website can be found in multiple languages and we also have telegram communities in many countries, including Korea! We know how important Korea is to the crypto ecosystem, and are excited to build Serum together :)
You can join our community here! https://t.me/ProjectSerum_Korean
Q11. (Live-Question) Revenue and adoption play major roles for every project and while SRM is a crypto company(at which many are), crypto companies face more hardships in terms of generating adoption and revenue, Can you tell us how do you plan on getting SRM adoption increase and how do you generate revenue from your technology/platform?
A.To answer your two questions:
1) Yes! We have a staking program — SRM holders can stake their tokens for a 4% annual return. We also have a node program that you can learn more about by visiting our website (https://projectserum.com) We have multiple languages available :)
2) The revenue model comes from the buy and burn model of the SRM token. The token model is a buy-and-burn model where 98% of fees generated are burned, and 2% go to ecoSerum to build out the ecosystem.
SRM holders receive: Reduced fees on Serum, staking rewards, participate in buy and burns for 100% of net fees, and specialized governance.