Bonfida is a decentralized non-custodial exchange that is built on the open-source Serum trading protocol, as well as powered by the Solana blockchain.
There is no doubt that DeFi is growing, as proven by the rise of its total value locked (TVL). Once the traditional financial sector shifts to DeFi, this could potentially become a trillion-dollar industry. As a consequence, the user will have had increased by almost a billion, which could cause serious issues for the current available blockchains.
Many of the current chain appears unprepared to improve on their throughput, except for Ethereum 2.0, which is unlikely to be fully functional for several years. However, If there is one blockchain that is relatively unknown yet packs so many prospects in its usage of on-chain orderbooks, it’s Solana.
The Solana network boasts a fast execution speed and low-cost fees. But despite these advantages, it is still quite strange to many. Bonfida corrects this by allowing its users to have access to a decentralized exchange (DEX) and also leverage on the potential of Solana.
Background
The project was built by the Bonfida Foundation, which is a team of experts in the crypto industry with a specialty in front, backend, and blockchain development. The team is also an expert when it comes to community building and providing great customer services. Apart from their experiences garnered in the crypto space, the team is also very comfortable in working in analytics and engineering.
The foundation’s flagship product, Bonfida, has seen a weekly growth of requests since it enables DEXs to be as robust and powerful as some of the well-known centralized exchanges.
What is Bonfida?
Bonfida is a decentralized non-custodial exchange that is built on the open-source Serum trading protocol, as well as powered by the Solana blockchain. It provides a full product suite that bridges the gap between Serum, Solana, and the growing user base that is actively trading on the Serum DEX.
In addition, the platform has a backend structure that stores any transaction that occurs on Serum on-chain, which allows the exchange to provide data that is currently being used by CoinMarketCap and Coingecko to deliver their own services.
Being the flagship product on Serum GUI, its goal is to make Bonfida a go-to solution that can replicate what the prominent players in the Ethereum DeFi ecosystems are able to do.
Bonfida also has developed Solible, which is an NFT e-commerce store that would allow users to buy high-end collectible items on-chain.
As stated earlier, the Bonfida API is currently being used by some of the biggest market makers in the cryptocurrency industry. Furthermore, it has experienced quite an impressive growth with over a 25% weekly increment in its usage.
Bonfida Serum GUI
Bonfida’s long term aim is to remain the flagship product of Serum GUI. Presently, Bonfida holds the prestige of being the best available GUI since it provides all of the needs of Serum user. The platform also adds an interface that is user-friendly.
In order to increase its user base further, Bonfida will offer the following amazing features:
- Give users access to exclusive markets and listings
Bonfida plans to list exclusive markets on Serum. These listings would be governed by holders of FIDA. The platform has also planned to have the liquidity brought to these markets through the relationships it has built with other platforms like Alameda Research and a host of others.
- An advanced on-chain order type
Presently, there are only two order types: limit and market. Bonfida aims to go further by building a profit and stop-loss order on Serum. The platform also aims at offering both on-chain and off-chain order types, which would require users of the platform to stake their FIDA holdings to be able to use the feature.
- Order placements via TradingView charts
The first platform to have TradingView charts developed with on-chain data is Bonfida.
This service would be indispensable for exchanges in the years to come. However, there are still some improvements to be made especially when it comes to order placements via charts, as well as the position line on the chart. The moment these improvements are made, users would have access to a new and limitless trading opportunity via the TradingView chart.
- Development of two trading modes
Bonfida is going to lower the barriers of entering into the Serum ecosystem by building two trading modes: advanced and basic.
In the advanced trading mode, users would be able to experience the current trading mode with more advanced features like Bonfida bots and advanced order types. On the other hand, the basic trading mode would be focused on the convert function. It would have no charts nor advanced order types.
Truth is the business model of Bonfida. It is built on fees and would be able to generate from the orders completed on its GUI. All of these fees then go into either a FIDA buy or burn.
Regardless, the use of the fees would remain the prerogative of holders of FIDA.
Serum API
Bonfida’s backend allows it to store all transactions that occur on-chain for Serum. This stored transactions are then used to provide data that is being used by major crypto firms like Coingecko.
Accordingly, Bonfida is also working on closing the gap between Web 2.0 and Solana blockchain. The platform would be able to achieve this by building a Serum order placement API. It is expected that FIDA would have to be staked to get this done.
FIDA
To effectively grow the system and perfect user experience, there is a need for a native token that would play a major role in the working of Bonfida. This is what FIDA is for.
FIDA is quite different from the average token on the market in the sense that most of the tokens are locked long-term with the minimum being one year, and over 90% of the others locked for four years.
The token would have no large holders that can act as net sellers because there is a limited percentage of the token in supply. This puts the token in a unique position where it is able to perform the following functions for the platform:
- The FIDA token would govern 95% of net fees on Bonfida. These fees could be used for either buying or burning.
- FIDA tokens can be used to carry out transactions like granting access to VIP API, Bonfida Bots and DEX, access to Solible listings, and a lot more.
- Staking FIDA gives users access to uncommon Solible markets, advanced market analytics, etc.
- It could also be used as a governance token that would allow holders to be able to vote on certain Bonfida parameters.
Conclusion
Bonfida is the flagship product on Serum GUI. It is a non-custodial DEX built on Serum trading protocol and is powered by the Solana blockchain. The platform aims to bridge the gap between Serum, Solana and the average user through a host of features that are unique to it.
And with the FIDA token, a user can maximise the Bonfida platform by having access to rare opportunities that abound in the crypto space.
