---
# System prepended metadata

title: 'Collateral Asset Onboarding Proposal #0001: SRM'

---

# Collateral Asset Onboarding Proposal #0001: SRM


### Collateral Asset Profile
- _Collateral Name (and symbol):_ Serum (SRM)
- _Collateral Short Description:_ Utiltity token of the Serum Decentralized Exchance Ecosystem.
- _Total Value in Circulation:_ ~$529,000,000 as of 09/15/2021 *[source](https://coinmarketcap.com/currencies/serum/)
- _Total Value on Solana:_ Unknown. But I feel it can be assumed the majority of SRM tokens are either on the Solana platform or within centralized exchanges.
- _Price Oracle Feeds:_ Pyth, Switchboard


### Proposal
This proposal is to consider the serum token (SRM) as collateral for the Jet token's lending function. The Serum decentralized exchange is involved in the majority of exchange traffic on the Solana platform. The Serum token provides it's holders benefits such as exchange fee discounts, staking rewards and governance functions.

### Use Cases
I think that many market participants hold SRM both for it's speculative value and it's utility for reduced exchange fees. Considering that the majority of trading is denominated in USDC and that the majority of Solana tokens are locked in staking, I believe the Serum token will be an attractive asset to be used as collateral for market participants.

### Official Links
- [Project Serum](https://projectserum.com/)
- [White paper](https://projectserum.com/static/media/serum_white_paper.88d98f84.pdf)
- [Staking and Voting](https://projectserum.com/#/staking-and-voting)
- [Project Serum Discord](https://discord.gg/zxPsXcB)

### Other Relevant Metrics
- _Total Value Locked_: $313,044,000 *[source](https://defillama.com/protocol/serum)
- _Age of Asset_: ~1 year *[source](https://icodrops.com/serum/)


### Risk
- _Technical Risk:_ Serum is a native SPL token. I assume this means that implementation should be relatively straight forward.
- _Counterparty Risk:_ The fact that FTX is the primary contributor to the Serum ecosystem makes me think that this is relatively low.
- _Liquidity Risk:_ SRM liquidity pools are numerous. I think that this maked liquidity risk low.
- _Price Feed Risk:_ I feel safe in assuming that any oracle would consider their SRM price feed a high priority, making this risk seem low in my opinion.
- _Bridge Risk:_ Bridge risk is negligible since SRM is a native SPL token.
- _Other Risk:_ None comes to mind.

### Additional Links
- [Serum Project](https://projectserum.com/#/)
- [Coin Market Cap](https://coinmarketcap.com/currencies/serum/)
- [ICODROPS](https://icodrops.com/serum/)
- [Defi Lama](https://defillama.com/protocol/serum)
- Links to any available audits of the project.