Dialogue Cyn: Comprehensive Analysis of Bonfida Product Design

Bonfida is the flagship front end of the Serum decentralized exchange, providing a better trading experience for the Serum decentralized exchange and enhancing the trading experience for DEX. Currently, in addition to the basic trading features based on Serum, Bonfida offers features such as algorithmic trading bots, Serum API, and the upcoming launch of the first perpetual contract protocol on the Solana chain.

This time, we invited Cyn, the business manager of Bonfida, a project in the Solana ecosystem, to share insights on Bonfida's main positioning, value capture mechanisms, and how it empowers the Solana ecosystem. We believe this article will help you gain a deeper understanding of the Solana ecosystem.

Chain Hunter: Bonfida is known as the connection between Serum, Solana, and users. Could you briefly introduce the relationship between Bonfida, Serum DEX, and Solana?

Cyn: The Solana public chain has the following key characteristics:

1. High performance: The Solana public chain can achieve peak global network concurrency of 50,000 transactions per second with over 60 nodes participating globally, allowing it to handle over 100,000 transactions per second.
2. Low latency: 400 milliseconds per block, ensuring that transactions are processed in a timely manner and completed in less than half a second.
3. Low transaction costs: Low miner fees, with approximately $10 for every million transfers, ensuring that users can maximize the use of the high-performance network without worrying about excessive costs.

Serum is a powerful, fully decentralized ecosystem based on the Solana public chain. It consists of the Serum decentralized exchange and other projects built on it. The main features of Serum DEX can be summarized as: efficient, inexpensive, with a complete on-chain order book, and supporting cross-chain trading.

Bonfida is the flagship front end of the Serum decentralized exchange, providing a better trading experience for the Serum decentralized exchange and enhancing the trading experience for DEX. Currently, in addition to the basic trading features based on Serum, Bonfida offers features such as algorithmic trading bots, Serum API, and the upcoming launch of the first perpetual contract protocol on the Solana chain.

Chain Hunter: Please provide a detailed introduction to Bonfida's main positioning and application scenarios.

Cyn: Bonfida's positioning is as a leading builder in the Solana ecosystem. The products and services currently offered are mainly divided into four areas: 1. Bonfida DEX: The first flagship front end embedded with TradingView candlestick chart design on Serum DEX, the first choice for Solana ecosystem users to trade.

2. Serum API: Provides unique data storage for all Serum trading data, currently used by platforms such as Coingecko, Coinmarketcap, and many leading market makers in decentralized exchanges.

3. Bonfida algorithmic trading bot: Users can build trading strategies using TradingView's technical indicators to achieve algorithmic trading; these algorithmic strategies can also be opened to others for subscription.

4. Perpetual contract protocol: The first perpetual contract protocol in the Solana ecosystem (coming soon).

Chain Hunter: For the main DEXs in the Ethereum ecosystem, they mostly provide trading graphical interfaces themselves. Why does Serum need such a front-end product?

Cyn: Serum DEX is the core infrastructure that powers financial projects and other major projects within the Solana ecosystem.

Protocols with trading-related functionalities can leverage Serum DEX's central limit order book (CLOB) to assist with their trading, data services, pricing, and risk management. Countless complex financial services can be built on top of the DEX, and they can be combined to provide synergistic value.

Thus, Serum's positioning in the ecosystem is as core infrastructure to support the building of other DApps. From this perspective, it actually encourages various front ends to be built on top of it to help drive traffic.

If you look at the Serum website, as a front end, you can only receive 20% of the trading fees, while the majority of the profits still belong to Serum. Having a front end that can attract more traffic but only shares 20% of the profits is certainly beneficial.

Chain Hunter: Bonfida is currently in a strong binding state with Serum. What is the current collaborative relationship between the two teams? Will you consider collaborating with other projects to grow your independence in the future?

Cyn: Currently, the two parties are in a cooperative relationship. One of the most fascinating aspects of DeFi is its composability. As mentioned earlier, Serum serves as the foundational infrastructure on the Solana chain, providing a range of services for DApps built on it, which is a very efficient and convenient approach.

We are certainly willing to work closely with other Solana projects and have already started doing so. Previously, we collaborated with Cope to help them build the smart contract for managing the COPE token. Additionally, during the IDO period of most quality projects, we help launch VC pools to enhance the recognition of the Solana ecosystem for those projects.

Chain Hunter: Speaking of VC pools, I remember the last MER VC pool had pretty good returns after the token launch. Can you explain the specific participation rules? Are there any new plans for the next round?

Cyn: As the name suggests, the VC pool helps projects with fundraising. The difference from IDO is that this pool is in a locked state, with a lock-up period of one year.

Taking the last VC pool as an example, users contributed funds at a ratio of 25U:1FIDA. The deposited funds would purchase tokens at a 10% discount from the MER IDO price, while the deposited FIDA would be burned. Users would receive a token called MERPOOL, which can be used to redeem the corresponding MER tokens after one year.

MERPOOL can also be traded directly on the secondary market. (Currently, MERPOOL derived = 8.8 MER means that an investment of 1U + 1/25 FIDA = 1 MERPOOL can redeem 8.8 MER after one year, with FIDA being burned as proof).

Chain Hunter: How is Bonfida's token economic model designed? How does it capture value?

Cyn: Bonfida has launched its native token FIDA, with a total supply of 1 billion tokens. 95% of the net fees on Bonfida will be used to buy back and burn FIDA tokens. The application scenarios for FIDA within the ecosystem include access to VIP API, among others. In the future, users holding FIDA will also enjoy reduced fees for perpetual contracts.

Additionally, FIDA can be staked on the Serum platform, and 10% of the monthly buyback and burn will be used to reward FIDA stakers.

The distribution plan for FIDA is as follows:

• Seed round lock-up: 9% (linear unlocking starts after one year of purchase, fully released within four years)
• Liquidity provision: 2% (no lock-up)
• Pre-sale: 0.6% (no lock-up)
• 10%: Allocated to EcoSerum nodes as SRM earnings (of which 8% is locked, linear unlocking starts after one year of purchase, fully released within four years)
• 10%: Allocated as bonuses and allowances, held by Bonfida contributors and staff (locked, linear unlocking starts after one year of purchase, fully released within four years)
• The remaining shares will be managed by Bonfida and the FIDA Foundation, as well as the future Bonfida ecosystem.

The total circulation in the first year accounts for 4.6% of the total token supply, including 2% for providing initial liquidity, 0.6% for the no-lock-up pre-sale portion, and 2% for the unallocated portion given to EcoSerum nodes as SRM earnings.

Chain Hunter: Can you introduce the Bonfida algorithmic trading bot product? The recent first trading competition has been widely promoted by various media. What makes this product unique?

Cyn: BonfidaBot can help DeFi users in the Solana ecosystem establish trading strategies on Serum using the natively integrated TradingView.

DeFi users can use TradingView's strategy indicators or send on-chain trading signals to BonfidaBot via JavaScript commands to achieve fully automated on-chain trading. At the same time, users can choose to open the algorithmic strategies they create to others and set their own subscription prices for those strategies.

Other users subscribing to the strategy will provide incentives to the strategy provider in the form of subscription fees. Based on the high transparency of the Solana decentralized ecosystem and the absence of centralized custody, users can fully backtrack and view the historical returns of all publicly available strategies.

Whether users create their own trading strategies or subscribe to others' strategies, they maintain 100% control over their assets.

Chain Hunter: As a DApp on-chain that helps users with algorithmic trading, what are the advantages and future prospects of BonfidaBot?

Cyn: Advantages include the following points:

1. High transparency, decentralization, and non-custodial, giving users 100% control over their assets. On-chain information is completely public, and users have a high level of awareness.
2. The operation of following strategies is very simple. Most users face some technical barriers when writing their own strategies, but following strategies on-chain is as convenient as using Alipay to purchase funds. For users who believe in value investing and are willing to follow strategies, it is a very user-friendly product.

Currently, I believe many institutions are also starting to layout in DeFi. In the future, quantitative institutions can publish strategies on-chain, such as earning fund management fees.

BonfidaBot is likely to become an on-chain asset management platform, even though it currently only supports the spot market. As the Solana ecosystem continues to thrive in the future, more contracts or options protocols will be continuously built. BonfidaBot can integrate these protocols into the platform, providing more diverse trading products, which we believe will attract more users and institutions for collaboration.

Chain Hunter: The Bonfida algorithmic trading bot competition is nearing its end, concluding on the 24th. Can you share the situation of this competition?

Cyn: This competition lasts for a month, and so far, 100 participants have registered, which is quite unexpected given that the product has just launched and the operational threshold for participants is relatively high. Moreover, as everyone knows, the market has not been very optimistic since May 19th. In such a challenging external environment, we still see some excellent strategies, such as the overseas CompendiumFi quantitative team, which has consistently led with a return rate of over 40%.

Previously, we published a ranking list every week, capturing the top ten strategies, with overseas participants accounting for about 50% and domestic participants also accounting for 50%, indicating that there are many hidden quantitative experts domestically.

After the competition ends, we will selectively place high-quality strategies on the platform's homepage for other users to subscribe to.

Chain Hunter: What important actions can Bonfida reveal next? What are your future development goals?

Cyn: As I mentioned earlier, Bonfida's positioning in the ecosystem is as a leading builder. We always strive to be at the forefront of the Solana ecosystem, daring to take the lead. For example, the launch of the robot product and the upcoming launch of the first perpetual contract protocol in the Solana ecosystem. The main products in the future will be contract protocols, and we hope to continuously empower the entire Solana/Serum ecosystem.

At the same time, as one of the earlier projects in the ecosystem, we have strong Rust development capabilities. We also hope to do our utmost to help more new Solana projects build, including providing assistance in building underlying smart contracts or helping these early projects gain some visibility during the IDO phase through VC pools.

In summary, Bonfida aims to do its utmost to empower the Serum/Solana ecosystem.