Serum, the Solana (SOL)-based DeFi protocol, is launching an incentive program for the use of its ecosystem. Financed by an 8-figure fund, it will be designed to reward automated market makers.
Targeting 1 billion users: a $100 million program for Serum and Solana
On October 28, 2021, Serum, the Solana (SOL) derivatives DEX, announced in a release, the launch of a $100 million liquidity mining program to attract more users to the ecosystem. The fund paid in SRM tokens will be used to reward Automated Market Markers (AMMs) working directly with Serum’s on-chain order book.
In particular, Sino Global Capital CEO Matthew Graham, who is an early investor in Serum, emphasized the importance of this program in enabling the blockchain and Serum to reach their goal of one billion users:
“Serum has already proven that an on-chain order book is an essential primacy for Solana-based mass calling applications. With this announcement, Serum is poised to further reduce transaction friction and increase composability, which will encourage innovation, attract new users, and move the Serum and Solana ecosystem closer to the goal of one billion on-chain users.”
Liquidity mining encourages WMAs to provide liquidity to DeFi protocols, and thus improves the overall operation of the network. It is a process whereby a project offers its tokens to investors who wish to deposit funds into a smart contract.
Serum and Solana: the numbers behind the boom of 2 major DeFi projects and the cryptosphere
Serum currently concentrates a total locked-in value of about $1.58 billion in its DeFi ecosystem, and ranks 11th among decentralized exchanges. For comparison, the total locked value of industry leaders such as SushiSwap, PancakeSwap, and Uniswap are each over $5 billion.
Solana, meanwhile, is the sixth largest crypto project in terms of market capitalization approaching $60 billion. Solana Labs raised over $314 million in June 2021 to support existing and future decentralized applications and platforms hosted on Solana.
The Solana ecosystem continues to grow through this Serum initiative. Projects hosted on the network benefit from its technical performance, which includes being one of the fastest blockchains in the cryptosphere.
