Serum tapped Jump Trading to provide liquidity on the exchange, ensuring the DEX has the liquidity to scale adoption to a wider audience.,
Market Making Giants on Serum
The chances of Serum’s success, a DEX on Solana, are improving by the day. In the latest, he nascent crypto exchange roped in one of the top market makers in crypto.
12) I’m excited to announce a huge addition to the Project Serum ecosystem.
Jump Trading, one of the world’s leading liquidity providers across the financial ecosystem, has made a significant partnership with and investment into Serum.
Liquidity is coming: enough to scale.
— SBF (@SBF_Alameda) September 3, 2020
Jump Trading is a reputed name in financial markets and one of the largest traders on the Chicago Mercantile Exchange (CME). The company has been tight-lipped and doesn’t openly disclose much information apart from regulatory filings. However, it’s a well-known fact that Jump is one of the most active market makers in crypto.
Since Serum is an orderbook-style exchange, larger traders may feel more comfortable there as opposed to automated market makers like Uniswap and Balancer.
Coupled with two of the space’s largest market makers joining forces on Serum, there is a genuine chance the DEX becomes a top crypto trading venue. Solana’s high throughput will put non-custodial trading on par with the speed of centralized exchanges.
Whether DEX traders will move from Ethereum to Solana remains to be seen. But one thing is certain: liquidity woes will be small to non-existent on Serum.