The effort was orchestrated through GitHub and Telegram, where prominent members of the Solana community came together. Some, like Max Schneider of the Mango Markets trading platform, took the initiative in coding while others, like Long, were responsible for making sure everyone was pulling in the same direction.
By November 16, Open Book had surpassed Serum in terms of daily trading volume (at approximately 3 million dollars), signaling that traders had accepted the clone as the official successor. On Twitter, Ansel, project contributor describes this moment as “the point of no return”. Many applications interfaced with the original exchange, such as DEX aggregator Jupiter, data provider OpenSerum, and trading interface Solape, have migrated to the new version.
Community member Dante Briger, who helps keep Open Book running by buying and selling regular amounts of cryptocurrency, described the speed with which volunteers were able to get the new DEX up and running as “ incredibly credible.”
Decentralized exchanges differ from their centralized counterparts (like FTX, Binance, Coinbase and others) in several important ways. Most notably, instead of relying on an intermediary to connect buyers and sellers, DEXs allow users to conduct peer-to-peer transactions and retain custody of their own funds.
This arrangement is an example of what is known as decentralized finance, or DeFi, an initiative to develop a suite of financial services atop blockchain technology. In a Twitter feed Published in July 2020 which now reads like a dark prophecy, Bankman-Fried described DeFi as “filled with potential” because it does not involve “relying on trust.”
Community members see the collapse of FTX as a key moment for DeFi, which they believe is a cure for the problems that have haunted the crypto sector over the past year, following the collapse of large centralized organizations like crypto lender Celsius and hedge funds. Capital of the Three Arrows.
According to Hayden Adams, founder of UniSwap, the world’s largest DEX, this is “a good learning moment for the industry.” Although the DEX model suffers from a steeper learning curve for new users, he says, it eliminates the need to store coins with an exchange, which gave FTX the ability to divert funds clients to its sister company, Alameda Research, in the former. place.
Andrew Trudel, contributor at Kwenta, another DEX, says clients can never be completely sure what happens to their assets within a centralized exchange. But with a DEX, “how the funds are used is completely transparent” because everything is hosted on a public blockchain, he says. Trudel and Adams predict that traffic to decentralized exchanges will eventually overtake traditional exchanges for these reasons.
