The DeFi market has recently experienced a spike in the active user base and daily transactions. This has resulted in a Total Value Locked (TVL) of $99.14 billion as of writing.

While this is thrilling, it also poses a serious challenge to most DeFi blockchains. This is because most DeFi mainnets don’t have preparations to handle the growing user base and throughputs.

However, the Ethereum blockchain aims to solve the issues arising with the growing user base with the emergence of Ethereum 2.0. But this will not be fully implemented until some further years. Asides from Ethereum’s blockchain, another mainnet that aims at solving this issue is the Solana ecosystem.

The Solana blockchain is a decentralized blockchain that provides flexible, seamless, and cost-effective transactions. However, it is still alien to most people. Bonfida provides a platform for you to access a permissionless or decentralized exchange (DEX), with access to Solana’s favorable capabilities.

This review explains all you need to know about the Bonfida protocol. Is it profitable? Is it risky? Who developed the protocol? And, when was it developed?

Now, What is Bonfida all about?

What is Bonfida?

Bonfida 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 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.
  • Onchain 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.

Succeeding the full implementation of these features, users can have a frictionless and smooth transaction on the ecosystem.

  • Advanced and Basic Trading modes: Bonfida will segmentalize entry into the network to reduce unpermitted access. Therefore, they will create two trading UI modes—Basic and Advanced. The Basic model focuses more on conversion, while the advanced mode will provide advanced charts, order types, and Bonfida bots.
  • Interface Charges: The business model of Bonfida focuses on truth. It consists of fees charged on orders made during transactions like buying or Notwithstanding, the use of fees within the platform ensures control within reach of token holders.

Bonfida Features

Serum API

Bonfida 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 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.

Users can tokenize their strategies: Successful traders can tokenize their trading strategies as SPL tokens. These tokens can be used to weekly buy or

BonFida Native Token

The Bonfida ecosystem has a native token that is used for facilitating transactions within the network. That is the $Fida token, an ERC20 token. It was also deployed to expand the network and make the user experience seamless effectively. It is a utility token that can be used for the following:

  • Bot payments.
  • Consultation services
  • Accessing VIP APIs

The total amount of tokens supplied is 1 billion $Fida tokens, and over 95.4% of the tokens are locked in for four years. The token vesting will commence after one full year after the protocol’s launching. Bonfida’s development team decided to keep the token circulation minimal for the first year.

Bonfida Review: All About the Token Explained In Detail

Image Credit: CoinMarketCap

$Fida has no major distributor or large sellers because the token supply is kept minimally, so there isn’t enough to be sold out between holders.

This places the token in a pivotal position for control and governance within the platform. The token will be used to perform the following functions:

  • The token is used for facilitating transaction fees within the platform. And these fees come either when buying or burning the tokens.
  • The token can be staked to get rare Solible markets or advanced market analysis.
  • They are used to accessing unique transactions such as granting VIP API access, exclusive API endpoints, and lower latency.
  • The token functions also as a governance token where holders can vote for some Bonfida parameters.

The token distribution is projected as:

  • Total created tokens: 1,000,000,000 (1 billion $Fida).
  • The Lock Seed Sales: 9% (locked within the first four years after launching).
  • Liquidity: 2% (unlocked).
  • Initial Exchange Offering (IEO): 0.6% (unlocked).
  • 10%: EcoSerum going to SRM yielding: (8% locked within the first four years after launching).
  • 10% of Fida (locked within the first four years after launching) Reserved for Bonfida employees, contributors, etc., like grants and rewards.
  • The Bonfida foundation will manage the remaining for furthering the platform (locked within the first four years after launching).

The overall supply of tokens circulating in the first year from TGE: 4.6%. It is distributed as follows:

  • Liquidity: 2%
  • EcoSerum going to SRM yielding: 2%
  • IEO: 0.6%

The token’s ICO took place on the 17th of December, 2020. A total of 2,000,000 (2 million) tokens were sold, each at the rate of 1 $Fida = 0.1USD. Thereby raising $200,000 by the end of the token sales. Currently, the token’s Returns On Investments (ROI) for the launch day is 6,268%.

Wallet and Storage

You will need to set up a compatible wallet to connect to the protocol’s network. Compatible wallets include any crypto wallet that supports the use of SPL(Solana Program Library) tokens. Our recommendations include any of the following https://solongwallet.com/, https://www.sollet.io/, or https://bonfida.com/wallet/. Also, it’s highly recommended that you keep some extra $SOL tokens for transaction charges within your wallet.

Why Build on Serum?

There are certain criteria needed for a cryptocurrency order book to be considered useful. These criteria can include high transaction speed or responsiveness, etc. The Bonfida team chose to utilize Solana’s blockchain and Serum’s DEX for the following reasons:

  • High Throughput: Solana’s blockchain enables up to 50,000 transactions per second, with the potentials of scaling up as we go further.
  • Cost-effective Charges: Transaction charges for every transaction cost less than $0.001per transaction. This is almost infinitesimal compared to other blockchain charges.
  • Composability: Due to its open-source nature, any user in the protocol’s community can participate in any development to better the ecosystem.
  • Permissionless interactions: Transactions in the network are decentralized and do not need a third party.

Solible

This is a market for non-fungible tokens (NFTs) featured on the top section of the Bonfida platform. The exchange supports all the features that are available on other NFT exchanges without the regular Ethereum costs.

Solible emerged to bridge NFTs with other blockchains and act as an e-commerce platform for NFTs. It enables users to buy collectibles that can be redeemed physically.

(image gotten from Solible).

The Bom Fida development team focuses on the following:

  • First, creating an environment where transacting and minting NFTs isn’t hindered by the high network fees. Second, ensuring a real-time marketplace for NFTs.
  • Seamless interoperability with NFTs from other mainnets.
  • Listing exclusive redeemable items. Several NFTs can and will be released to $Fida stakers as airdrops.

The Serum ICO

Bonfida stands as a forerunner in Serum’s exchange. It is the first protocol to have an ICO (Initial Coin Offering). The protocol’s ICO took place on the 17th of December, 2020, in three parts for a total of 6 million $Fida tokens in the marketplace.

Two of its IEOs (Initial Exchange Offering) occurred on Bitmax and FTX, as the third was an ISO (Initial Serum Offering) on Serum.

They all had a max price offer of about $0.1 for each token, with a maximum allocation of about 4000 $Fida each person. There were a few persons who got the token at this price. The price escalated to over seven times (7x) the price on a listing day. Currently, the price of the token is about USD 6.29.

Bonfida Investors

Bonfida’s investors and partners consist of the following:

  • K.G Venture.
  • Genesis Block Capital.
  • Genesis Block Ventures.
  • Serum Stakers.
  • FBG Capital.
  • CMS Holdings LLC.
  • Bitscale Capital.
  • Alameda Research.
  • Evernew Capital.
  • Resident Pet.
  • Sino Global Capital.
  • Three Arrows Capital

Conclusion

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 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.

Users can also perform bulky transactions without worrying about the high gas fees, congested blockchain, or delayed trade.

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