Mercurial Seals Strategic Partnership Serum
Mercurial is excited to announce a strategic partnership with Serum to collaborate on key projects to improve the utility and liquidity for assets on Solana.
This partnership starts with Solana’s first on-chain cross-protocol aggregator. Mercurial has integrated with Serum to allow users to seamlessly swap from any major stablecoins on Mercurial to Serum tokens with a single, low slippage transaction.
Moving forward, Mercurial and Serum will be collaborating on a range of important initiatives, including leveraging on Serum’s comprehensive liquidity, providing deep stable liquidity to Serum order books, as well as collaborating on mutual education content and community awareness.
On-Chain Swap Integration Between Mercurial And Serum
Serum is one of the largest liquidity sources on Solana and supports the broadest number of pairs with deep liquidity for many of them. Many other dexes in Solana also share liquidity with Serum dex i.e. Raydium — hence integration with Serum will also help us obtain liquidity from other dexes.
At Mercurial, we have some of the deepest liquidity and lowest slippage between all the major stables on Solana, which makes it a natural fit for integration with Serum!
To make the integration as seamless as possible, we have built a unique on-chain program that accepts the key input information from the frontend, handles the interactions between the Mercurial and Serum protocol on-chain and returns the value to the user. This has certain key benefits, which will be elaborated upon later.
Seamless Swaps From Mercurial Stables <-> Any Serum Token
As transparent and straightforward as any swap on Mercurial. Swap in a single transaction and have all the essential information — expected rate, transaction route, minimum received, and Mercurial and Serum LP fees — clearly shown below!
Users can seamlessly swap from any major stablecoins (PAI, UST, USDC) to tokens on Serum with a USDC denominated base.
Go from PAI -> BTC seamlessly
Or UST -> FTT with very low slippage!
Try it!
You can directly buy a token like MER with PAI. Try it! https://mercurial.finance/swap/PAI-MER
Benefits Of On-Chain Aggregation
One of the awesome features of Solana is allowing for UI-level composing of instructions. Still, in their testing, there are a few reasons why chaining the separate instructions on the frontend is not ideal for this specific use case. Here are some of the key reasons:
- Simplifies the instructions: The instruction to interact with the aggregator is quite similar to swap instruction. Users just send the data including (source_token, dest_token, source_amount, min_dest_amount) to the aggregator program.
- Solves the spill issue: Comparing 2 cases in Figure 1, we see that the user using the aggregator will get 2002 MER after the transaction, and the user not using the aggregator will get 2000 MER + 1 USDC. We call this the spill issue that after the transaction, the user receives a small leftover in the intermediary token (USDC).
- Clarity of minimum rates and slippage: Because all the input tokens will be used, we have a very clear idea of the minimum rates and slippage for a given input number.
* For any dest_token that is being traded on Serum as the final aggregation, spill issue may happen because of the strict base size that Serum enforces per trade. This problem is especially serious for SOL since the base size is set at 0.1 SOL (~7USD). So, if you swap 10 PAI for 0.1 SOL without our smart optimization, you may get ~3 USDC from the spill because the route will go through Mercurial first then Serum. In this case, our aggregator will be smart enough to reduce the trade source_amount to roughly 7 PAI to minimize the spill issue.
Next Steps In Serum Partnership
This deep on-chain swap integration is just the first step in their work with Serum. Moving forward, we will continue to work with Serum on making liquidity on Solana much more usable, friendly, and well, liquid.
Mercurial cannot be more thrilled to work with Serum closely and hope everyone stays tuned for more great news to come!
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