Bonfida, with an ever-increasing collection of products, has a major goal – to bring users to the possibilities embedded in Solana by leveraging the Serum Decentralized Exchange. Bonfida abstracts some complexities that a user or cryptocurrency trader would have encountered while using some decentralized services on Solana. Bonfida helps in data aggregation and visualization to give a trader a smooth experience while using the Solana Blockchain.
In bridging the gulf between Solana, the Users of the blockchain and the powerful Serum tool, Bonfida has built about seven services for this purpose.
What is Serum?
Serum (Project-Serum) is a protocol and it is also an ecosystem of products built on Solana blockchain network. It is a decentralized and permissionless. Its purpose is to enable cryptocurrency traders and users of DeFi protocols in experiencing a standard system of engaging different sets of Financial Instruments possible on Centralized trading.
Serum provides users with a fully on-chain Order Book that allows other applications to utilize the service offered. With the Serum API, Bonfida has built a backend infrastructure that stores all the transactions that happen on-chain for Serum and by taking advantage of this, users can effectively utilize the data provided.
Launched on August 31st, 2020, Serum was one of the earliest major services built on the Solana blockchain. Supported and backed by Serum Foundation, FTX, Solana Foundation and Alameda research, Serum has successfully built services useful in the Decentralized Finance world.
Bonfida Name Service
Bonfida launched the Solana Name Service on the 22nd of June, 2021. The Solana Name Service offers a personalized “.sol” address that helps in simplifying the regular Solana wallet address with long characters.
The purchase price for a “.sol” address on Bonfida is at least $21 USDC. If this service costs nothing, it is possible for people to spam it by creating multiple names than needed.
This simple naming capability enables users of Solana wallets get paid with an address that is more memorable and less stressful to use. It is easier to use a name that is easily remembered than a wallet address that is not easily memorable.
Note: You need to check up on your bid before that last minute so that you will know if some outbids you. If you can afford to also outbid the latest bid on the name chosen then you will still be winning the auction.
A “.sol” name cannot be purchased outrightly but through auctioning. This is another way of making it fair for multiple users that might be interested in the name on which a bid has been placed. Auctioning takes three full days and anyone interested in the name being auctioned will have to outbid the current highest bidder.
Registering and Selling Domain Name(s)
By registering a domain name you like, you will have to go through the auctioning process.
To Sell your domain name, you can decide on The minimum bid price and the duration of the auction.
Bonfida Token Vesting
The purpose of Token Vesting is so that projects wishing to launch their tokens to the public will be able to do so with a mechanism that ensures that it these tokens will not be dumped on the public and inevitably causing a dip in the worth of the Projects’ tokens.
By using the Bonfida Token Vesting Smart Contract, there is an assurance that a substantial amount of token supply will be inaccessible by these early investors.
This mechanism increases people’s trust in the project.
Solana Trading Bots
Bonfida Bots is a group of tools for creating trading pools. These tools can be on-chain or off-chain. The trading pools created has their signal providers who creates Serum orders with the deposited pool’s funds and assets. By depositing in a particular trading pool, you will be rewarded with some pool tokens. These tokens can be issued by those whose strategy you are using and your reward can be with these tokens.
These allows their users to automate their own trading styles by creating strategies if they are competent to do so or to follow someone’s strategy that has been created by others.
By applying a strategy that was created by someone, you will be paying with FIDA.
Bonfida, on the 21st of July, 2021 announced the launching of their Audaces Protocol, the first perpetual futures trading protocol built on Solana. With its super-fast liquidation engine (fastest liquidation engine built on-chain), it can liquidate all positions at risk as fast as the same block speed on Solana (400ms) without needing to iterate over all the trading accounts involved.
How to Trade Perps on Bonfida
- Login to https://perps.bonfida.org/#/trade/SOL-PERP
- Agree to the terms and conditions pop-up
- Connect your wallet to the DApp.
As you can see from the screenshot above, a warning screen will appear if Bonfida detects that you are located in a restricted country. The following countries have laws that prohibit using decentralized exchanges such as Bonfida:
- North Korea
As a decentralized platform, Bonfida prevents IP addresses located in restricted countries from accessing the site. You can bypass the check by using a VPN.
Creating a Trading Account for Perpetuals
- After you have successfully created a trading account, you can now proceed to deposit your available collateral.
- Click on the “Deposit” button
After depositing, you can now proceed to perform a “Buy/Long” or “Sell/Short” trading.
Apart from a Solana SPL wallet and the need of SOL as trading fees, a balance of USDC in the wallet is also needed to guarantee access to trading perpetuals.
The native token of Bonfida is FIDA. This token gets its value from being used in the Bonfida services offered in terms of the fee discount, staking rewards, and the governance of the ecosystem. The FIDA token can be used for:
- Access to VIP API with lower latency enabled.
- Bot payments
- Consulting services (Consulting Services are for those that needs to access Serum tools and needs)
The maximum supply of this FIDA token is 1 billion and about 95% of this total supply has been locked. They will remain locked for four years. With this mechanism in place, most of the total FIDA token is guaranteed to be locked for at least 12 months and with over 90% locked for four years.
FIDA is quite different from the average token on the market in the sense that most of the tokens are locked long-term with the minimum being one year, and over 90% of the others locked for four years.
Other ways in which the FIDA token grants utility to the holders:
- The FIDA token would be used for about 95% of all the fees on Bonfida. These fees could be used for either buying or burning.
- If users stake their FIDA token, they are granted access to rare Solible market NFTs, Advanced market analytics and data visualization, etc.
- Used as a governance token for Bonfida, it grants the holders the right to be able to vote on proposals for Bonfida.
Bonfida API (Discontinued)
As of February 2022, Bonfida no longer offers an API service. As stated by a representative on their support forum:
We do not provide access to this API anymore because we are looking to deprecate it in the coming months. If you have questions about how you could set up your own infrastructure happy to helpBonfida
Solible was the first NFT exchange built on top of Solana and Serum. Launched in October 2020, Solible provides all the features provided by traditional NFT exchanges. The Bonfida team highlights the following as their roadmap for Solible marketplace:
• By Creating a platform where minting and transacting NFT’s isn’t stagnated by high network costs. Allowing for a real time auction house for NFT’s
• Easy bridges for transnationality with NFT’s from other blockchain networks (e.g. Ethereum)
• Listing exclusive redeemable items. Some of the NFT’s and redeemable items will be randomly airdropped on FIDA stakers. The vision for Solible is to make it more like an e-commerce store where people can buy high end collectible items on-chain that can be redeemed and used in real life!