What is Solana?
Solana is a web-scale blockchain network named after a coastal beach in California. Integrating several digital interfaces into one, combining exchange markets, audio streaming services, and gaming all at once.
Solana (SOL) apart, from being a blockchain has been proving itself to be the quintessential cryptocurrency due to its fast transaction speed, security, and scalability.
When investing in cryptocurrency the asset must have a good background if any problems with fund liquidation should ever arise. Solana’s inception was backed by Multicoin Capital, as well as Foundation Capital with an upstart of 25$ million dollars. Behind the integral planning were some of the most experienced programmers from Google, Intel, and Dropbox. Solana’s blockchain algorithm runs at a capable speed creating blocks every 400 milliseconds resulting in higher transaction speeds surpassing Ethereum’s ERC-20 standard. Solana is quickly becoming one of the most wanted cryptocurrencies due to the low fees used for transactions.
Solana’s clockwork mechanism is implemented within the blockchain itself, enabling fast transactions while syncing with multiple sources almost instantaneously, allowing for nodes to stack upon each other in perfect sync. With impressive all-around overall stats at validating within the network, Solana’s quick rise to fame came as no surprise.
Serum is a decentralized exchange where people can purchase crypto. Within its structure lies the Serum exchange. Serum comes to play when you need to exchange cryptocurrency as it has the highest speeds and transaction costs to complement its already established model. The model was built on Solana and it’s open to almost anyone who wants to participate.
The crypto derivate forum FTX was founded by Sam Bankman-Fried. A cryptocurrency entrepreneur who ranked on the Forbes 500 list just over a year ago. Serum has already attracted attention from 100 projects from DeFi, Web making it the ultimate blockchain to date. Serum brings a few noteworthy improvements exceeding existing blockchains like Ethereum or Chainlink.
However, Serum is not ideal in any way. The network at this moment lists only 15 tokens accompanied by their corresponding pairs lagging behind many other exchanges. The token list is narrowed to only the most popular digital tokens like Bitcoin, Ethereum, Raydium, and Chainlink. The list will likely be expanded sometime in the future.
- Cross-Chain Swaps
- Decentralized Order Book
- Serum USD/BTC
- Supports all legacy tokens (Bitcoin, Ethereum, Raydium, Chainlink)
- Highly competitive trading fees unless trading with SRM tokens giving discounts up to 60%
Luna DEX is another blockchain Protocol implemented over the Solana network. With a rapid increase of over 2000% in value on Luna tokens in recent months, many analysts are whimsical if the currency can maintain its sustainability and outlast competitors.
It is common knowledge that investing in cryptocurrencies can be risky due to volatile price drops. Terra aims to correct this by creating a long-term high reward investment for its tokens using flat-pegged stable coins. Those unfamiliar with stable coins should know that all stable coins are subsidized by fiat currencies. People safeguard them in order to keep a certain value of cryptocurrencies. Terra manages this by using algorithms that correct surges of supply and demand, keeping stable prices for its crypto token Luna.
Luna can exchange your tokens utilizing high-speed transaction speeds with barely any fees. Using Serum’s self-regulation protocol orders are automated on-chain limit within the order book. Luna scored 4.3 out of 10 on the security scale with an increase in profit by 63.3% resulting in prices as high as 21.94$. Analysts predict a high chance that Luna might reach a record high value over time once more. Luna has been on a rip lately, currently one of the leading Solana DEX’s.
- High speed transactions
- Automated on-chain limit on the order book
- High Security
- Flat pegged Stable coins
- Excellent staking returns
Raydium yet another DEX built on the Solana’s blockchain functioning as an AMM (Automated Market Maker). As the interest to trade with cryptocurrencies increases, the higher demand for decentralized networks granting people the financial freedom to trade. While other DEX’s offer their unique approach to solving some of the issues with automated markets, Raydium DEX has come up with its own tricks up its sleeve.
Automated Market makers can help with some issues with networks operating on traditional order books, most notably those caused by market fragmentation and inferior liquidity when exchanging tokens. Raydium aims to improve this by implementing on-chain liquidity on the order book by using the formula K = Y*X, giving tokens infinite liquidity, making them available at any moment for any other currency.
The automated order book will always balance the trade offers on the central order book proceeding with the Serum DEA giving users more options when trading. Trading Raydium’s RAY native token on the platform reaps beneficial rewards for both parties, granting users free coins within the liquidity pool when exchanging.
Ultimately, the remaining 0.3 percent transfers to users who opted to stake the currency. Ray tokens are hard-capped at 555 million. The halving occurs every six months ensuring prices do not dramatically swing with the reserves lasting for three years. Ray tokens could either be staked or mined. Ray is looking to be one of the best Solana DEX’s in 2021.
- Fast Transactions and low fees
- Unrivalled Scalability
- Improved trading experience
- Admission to Serum’s decentralized Order book
- Excellent long-term and short-term investments for RAY tokens
Which is the best Solana DEX?
You decide. It’s looking like each DEX listed above has some unique features which stand out. It’s hard to choose which one is going to be leading in the future. But they all look great. Leave a comment on which you think, will be the best!