What is Bonfida?
Bonfida (FIDA) is a decentralized exchange built and maintained on Serum’s trading protocol and hosted on Solana’s mainnet. Thus, it stands as a bridge between Solana and Serum and the increasing number of active users who actively trade on Serum’s decentralized exchange. In simple terms, the protocol is a cryptocurrency trading platform built on Serum’s exchange and hosted on Solana’s mainnet.
The protocol utilizes the Serum DEX to facilitate trading and transactions—Serum itself is being hosted on Solana’s blockchain. Both leverage Solana’s superfast on-chain order book, massive user base, and cheap transaction charges. These are a few of Solana’s advantages over other blockchains.
Additionally, Bonfida is a great platform for learners and professionals to trade effectively. It also provides a variety of DeFi products that users can purchase on the Solana blockchain. The protocol implements new features like trading charts, TradngView data, and market orders on the Serum DEX. These are analytical features that enable you to gather information on any trading activity going on.
The protocol was founded under the Bonfida Foundation in 2020 as a private type company with its head office in China. The Central Executive Officer and Founder are David Ratiney.
Bonfida Serum
Bonfida (FIDA) arose as Serum GUI’s forerunning project, with over 60% of Serum’s users utilizing Bonfida’s GUI. The main aim is to make Bonfida a top choice consideration against other popular and effective protocols in the Ethereum blockchain. Serum exchange was created for users to interact and interconnect within the Serum/Solana environment. It is also one of the first exchanges to use Solana’s data for its Decentralized ecosystem.
The protocol is one of the most effective protocols in Serum’s ecosystem and handles the majority of its GUI activities. Bonfida’s API is currently used by numerous market makers, increasing its number of active transactions by 25% weekly. In efforts to increase its active user base, here are a few of its unique features:
- Exclusive Markets and Listing: Bonfida will list exclusive markets on Serum’s exchange. The $Fida token holders community controls the listings, and the liquidity is provided by market makers strategically brought by Bonfida, which also includes Alameda Research.
- On–chain Advanced Order types: Presently, only two kinds of order types are market and limit. Bonfida aims to develop Stop Loss and Take Profit in the Serum Exchange. Also, the protocol will provide access to both on-chain and off-chain order types—both will require any user to stake their $Fida tokens to access these features.
- Order Placement Through TradingView Charts: Bonfida is the first protocol to have the TradingView feature on Serum’s exchange. And it accomplishes this using on-chain data. However, there are still some more features, like placing orders through charts and the position line on the charts.
Bonfida Features
Serum API
Bonfida (FIDA) backend enables it to save data records of every transaction on the blockchain for Serum. These stored data are then provided to external crypto firms like Coinmarketcap and Coingecko, which utilize the data for references and analysis. In addition, because Serum uses the REST API to provide historical information, anyone who uses Serum codes will invariably be using Bonfida’s data.
This makes it possible to access the TradingView charts, found uniquely in Bonfida. This unique feature keeps being upgraded alongside UI and UX features for better user experiences. Also, the protocol aims at bridging the void between Solana and Web 2.0. It will accomplish this by deploying the Serum order placement API.
Bonfida Bots
The Bonfida (FIDA) platform has made plans to assist traders in their trade. The development team is currently working on a “bot” to assist users in managing their positions in any given trade in the network. Users can customize these bots manually to their preferred technical indicators. The customization is called “rules” on the platform, which a user can create and get rewarded some $Fida tokens from it.
Here are the available possibilities:
- Users can pay to use the available rules: Users can pay owners of preprogrammed trading rules some $Fida to utilize their bots. The designer of the bot decides the cost for the bot.
- Users can pledge their collaterals to bot owners: The rule owners decide everything. So, users who wish to utilize their trading bots can bargain with them to make payment for the bots. The rule owners can decide to collect a percentage of the daily profits or a daily fee.
Bottom Line
Most DeFi Exchanges fail to meet the challenges that arise with the spiking number of increasing active users. Ethereum’s blockchain attempts to salvage these issues. However, the high gas charges associated with Ethereum’s blockchain discourages users from leveraging the very advantageous protocols hosted on the blockchain. This becomes a disadvantage to crypto platforms hosted on the Ethereum blockchain.
Users who trade large amounts of cryptocurrencies constantly search for platforms with lesser transaction fees and faster trade executions. That places so much efficacy on developers to seek platforms that provide such features if they desire to scale up and higher the DeFi ecosystem.
The Bonfida (FIDA) project emerged as a successful step in creating an exchange that facilitates real-time transactions seamlessly, cost-effectively, and in a fully automated and permissionless manner. Utilizing Bonfida, users can customize their trading strategies, tokenize them, and also earn from them.
