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Tuesday, December 7, 2021

Serum Swap, How To.


Welcome to the second episode of serum introduction (6 episodes in total). We will study how to use serum Serum is one of the most powerful apps in the digital currency ecology (apps: decentralized smart contract program) In this episode, we will focus on the swap function of serum (exchange) Swap is a very simple and easy-to-use tool.

It can exchange one digital currency with another digital currency. In addition, it also shows the comparison with the famous uni swap (based on the Ethereum platform) Mainly compare the difference between transaction cost and speed. We will also demonstrate some opportunities to gain revenue on the serum swap and other ways to gain revenue in the serum ecosystem.

If you are a novice and have not set up a wallet before and have used the serum decentralized exchange, you can browse the demo in the previous video Let me show how to use serum I have already set up the sollet wallet here, we will use this wallet Please remember: you need to have some sol in your wallet to conduct transactions on the blockchain network.

I have 0.1 sol and 5 USD here. Let’s try to buy some bitcoins on the serum swap, first, open the official website of the serum Here is the list of decentralized exchanges. This time we will use project serum dex (decentralized exchange).

Click here to exchange (swap) Connect to the wallet to select the digital currency to be exchanged We now have 5 USD Click here to start trading We can replace this 5 USD with BTC to verify the transaction Transaction completed Now we go back to the wallet to check Here you can see that the BTC is already in the wallet.

You can see that the BTC in the wallet is displayed as wrapped BTC represents a credential that anchors the value of BTC. This is the BTC on the completely decentralized Solana network Is SPL token (based on Solana network) if you plan to send this BTC on Solana network Just choose SPL BTC if you plan to send it to a BTC wallet Or send to a centralized exchange, such as coin base or fix, you need to click the original BTC (native BTC) button Fill in the address and amount.

If you want to store BTC in a cold wallet, such as ledger or Trezor, the same operation The transaction fee rate of our operation just now is 0.3% and 0.25% fee is given to the liquidity provider, and we will explain later 0.04% fee is used to repurchase and destroy SRM The 0.01% fee is given to the operator of this decentralized exchange. Our example this time is the project serum platform In addition to these fees, there are transaction fees for the Solana blockchain network.

When we started, we had 0.1 sol Now we have 0.0079 sol left. Click here, we can view specific transactions on Solana’s blockchain network You can see here because we need to add a new token to the wallet (because there was no BTC in the wallet before) There is a little handling fee for adding new tokens, the blockchain transaction fee is 0.00001sol Let’s see how much these fees are worth.

The fees just used 0.0021 sol The handling fee is really very low. Now our wallet has btc When we trade BTC in the future, we will no longer be charged a token addition fee. If you want to buy eth, or tokens that are not in other wallets In addition to the transaction fee, you also need to pay a token addition fee for the new token You have seen that the transaction fee is very low, and the transaction speed is very fast and can be executed in a few seconds.

You might think that the cost is relatively low and the speed is very fast because not many people use Solana, and the price of Sol is very low. Let’s try to follow the standard transaction fees Then suppose the sol rises to $500 in the future, you can see that the cost is still very low So there is a lot of room for adjustment to keep the actual cost low.

Let’s try to execute the same transaction on uni swap on the Ethereum network. Waiting (I did not slow down the video speed, I really waited for so long, I even want to have a cup of coffee, I might as well click to subscribe while waiting) Finally done, first connect to the wallet and use the meta mask wallet Unlock the wallet, ready to exchange our 5 USD Exchange BTC Use all USD We first verify the transaction Need to spend 0.9 dollars Need to wait 1 minute and 12 seconds If we lower the fee.

We need to wait for 10 minutes, but to be honest, just to confirm the transaction, the fee is already very, very expensive It may be even more expensive when we exchange it I decided not to continue because the fee is more than the funds we want to exchange, it is not cost-effective at all, click on reject.

Let’s see how to provide liquidity to trading pairs Open this page, you will see here is the trading interface Here is the meaning of providing liquidity interface providing liquidity You deposit your own funds into the liquidity pool and other users can exchange it on the serum at any time When providing liquidity, the liquidity provider gets a 0.25% transaction fee The specific amount is allocated according to the proportion in the flow pool.

The commission will be added to the flow pool in real-time. When you remove the liquidity, you can get the fee income. Let’s try to use the BTC we just bought to provide liquidity We provide liquidity in the SRM pool. No matter what you provide, you must provide two assets of equivalent value.

We choose all BTC, we need 4.17 SRM Let’s transfer some SRM over, open the wallet and operate the transfer We only have 4, we only transfer 4 SRM 4 SRMs have arrived We enter 4 SRM to automatically fill in the equivalent BTC Click to provide liquidity to confirm the transaction We have successfully added liquidity.

If you have already provided liquidity, click here You will see the details display interface here is the number of assets you pledged Because only 2 decimal places are displayed, you can’t see the amount of BTC. The fee you get is displayed here.

It changes in real-time and can be withdrawn to your wallet at any time Here is some information about the flow cell The total amount of mortgage, the amount of mortgage, transaction volume and the total transaction fee in the last 24 hours.

Here is the estimated ARR (annualized rate of return) is now very high because there are incentive activities in the SRM flow pool Open the academy guidance page of the website, you can see more helpful information.

The incentive activity is about to end. But I am sure I will continue to launch other incentive activities to encourage everyone to participate and learn If you participate in other liquidity pools instead of the liquidity pool in the incentive plan.

You will find that the return is much lower You can see the situation of the flow cell here. There is a good interface to show you the situation of all the flow cells. The ARR of the SRM flow cell is very high. This is because some of the wifi/USD flow cells will be higher.

There are also some risks in providing liquidity, called “Impermanent Loss” I suggest you do your homework before participating to make sure you understand all the risks Surprisingly, serum was only born for 4 months There will be many new developments every day like the other revenue opportunities we just mentioned.

The current incentive plan for liquidity providers is about to end, but a new incentive plan will be launched More and more new projects entering this ecosystem will also bring more opportunities, please stay tuned You can get the latest information through official Twitter and official medium.

Here are excellent articles are written by sam bank man-fried Sam is the chief consultant of Serum. Sam will also frequently update the progress of Serum on Twitter. The above is all the content of this episode.

In the next episode, we will show the use of mobile serum and wallet. And how to transfer the erc20 tokens on Ethereum to the serum for a better experience, faster speed and lower handling fees If you like my display, please like and share.

Read More: What is Uniswap? Uniswap UNI Explained

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