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Solana blockchain now provided a new option for DeFi users to swap between crypto tokens. 

The new decentralized exchange market Swap is launched today on Serum, a DeFi platform developed to run on the Solana blockchain. Developed by FTX exchange CEO Sam Bankman-Fried, Serum adopts the Solana blockchain to assure faster transaction speeds and lower transaction costs by comparison with the leading platform Ethereum, which now hosts the vast majority of DeFi protocols. 

In order to jumpstart the DEX, Swap will give liquidity providers extra rewards through airdropped Serum tokens distributed till November 25. Serum tokens are designated to pay transaction fees on exchanges powered by Serum infrastructure, similar to Gas on Ethereum network. 

The launch serves as part of Solana's ongoing DeFi play. Wormhole, a Solana-to-Ethereum bridge, has been shipped earlier this month, with the aim of getting DeFi projects to make profits from its nascent blockchain. Last week saw it became the third blockchain to add the USDC stablecoin, which is regarded as "the lifeblood of the DeFi ecosystem" by its co-founder Anatoly Yakovenko. 

That made Solana, Serum, and USDC issuer Circle's business interests aligned. 

DeFi, also known as decentralized finance, refers to issue loans, provide interest on deposits, or do other bank-like functions without banks' participation via automated code like smart contracts. Additionally, DeFi applications leverage the computing power of decentralized blockchain networks, the vast majority of which are running on the Ethereum blockchain. 

Serum's Swap is one of the first DeFi apps to launch on a different blockchain, such as Solana. Despite still in beta testing before the full mainnet launch, Solana now provides block times of under one second, indicating it can process and settle thousands of transactions per second.   

This should be undoubtedly helpful to maintain transaction fees low to compete with record-setting fees on Ethereum in recent months. As is known to all, Ethereum blockchain has been long bothered by process speed, with merely 15 transactions per second. Moreover, the process speed will also determine the transaction fees. Therefore, the more throughput a blockchain boasts, the less the transaction fees would be paid by users. 

Serum, launched in July, provides infrastructure decentralized exchanges, and has introduced several dollar-pegged stablecoins so as to enable DeFi transactions to be denominated in the familiar US currency, covering Tether and USDC. Unlike the traditional centralized exchanges that used on-chain order books to match buy and sell orders, Swap is the first automated market-maker (AMM) released on Serum, resemble to Uniswap on Ethereum. 

Adding to AMMs to Serum helps means the platform is as versatile as Ethereum and offers several advantages in cost and speed that may take years to match. Once fees begin to spike again with interest in DeFi continuously growing, it could result in rapid growth for the nascent Swap exchange on Serum. 

Nonetheless, although it is a fabulous opportunity for Serum to keep pace of Ethereum, Ethereum is not await for its competitors to replace its predominance in DeFi space. The long-waited Ethereum 2.0 is expected to be released in December. Whether ETH 2.0 would save Ethereum from the tough time or not? Or it is another development period for the rest ambitious blockchain?