Solrise DEX Pro
When we published our new Product Roadmap a few weeks back there was one additional detail that we weren’t able to announce at the time. We’re now able to tell you — because we’ve launched Solana’s first permissioned DEX! This permissioned DEX is the first part of our future ecosystem of permissioned protocols. These are kept entirely separate from Solrise core, which will always remain permissionless and without any form of mandatory KYC. We call this new permissioned exchange Solrise DEX Pro, and we’ve worked hard to create it in partnership with Civic Technologies, a leading innovator in digital identity solutions. You can read the official press release here, but we also wanted to talk a little about why we believe this is an important step forward for us as a team and for Solana as a whole.
Here at Solrise, we strongly believe in the idea of a decentralized future that facilitates freedom of choice for consumers and investors. We’re seeing the capacity and capabilities of decentralized exchanges come along in leaps and bounds while centralized exchanges are in retreat. The concept of permissionless access to dApps is a core principle of DeFi, and our main set of Solrise products will always remain permissionless and available to all.
When it comes to large capital allocators like institutional investors, though, things get a little trickier. Even the most agile of institutions struggle to gain any sort of exposure to DeFi because of inherent issues with counterparty risk and the general web of red tape when making investing decisions. Users who are trading against someone on the sanctioned list can get up to 20 years of prison time and up to tens of millions in fines. Multiple institutions have had to pay penalties in the hundreds of millions or even billions because they transacted with, or enabled the transactions of, the wrong counterparties. These brutal consequences can make it incredibly risky for institutions to participate in DeFi at all.
DeFi as a whole is still in its infancy and right now, the very first building blocks of a future industry are being built. As the industry grows, regulatory scrutiny is likely to increase, so these access issues will only get more complicated as time goes by. There is an imminent need for a product that can solve the above issues.
Solrise DEX Pro is our way of bridging the world of institutions to DeFi without resorting to centralization. With Solana already being the most familiar DeFi ecosystem for traditional finance, we expect to become one of the primary hubs for institutions that wish to jump into the ecosystem. This permissioned DEX allows us to establish a parallel ecosystem of permissioned protocols.
We want to make sure that every new product we release benefits holders of our token, SLRS. As a result — all fees generated by Solrise DEX Pro will be used to market buy SLRS. These tokens will then be sent to our LTR (Long Term Reserve) pool and effectively taken out of circulation, with release subject to a vote from our future DAO. We’ll have a further article coming out in the near future that sheds more light on how we expect the overall Solrise ecosystem to fit together in the future, and how all of that relates back to our SLRS token.
Solrise DEX Pro uses Civic Pass as our underlying identity technology to determine which participants meet rigorous standards for verification prior to allowing them to trade. As the user continues to trade on the permissioned DEX, Civic Pass monitors the user for ongoing adherence to the rules. If, for example, a user gets added to the sanctioned list, all of their orders on the DEX are revoked immediately — guaranteeing a good night’s sleep for every market participant.
In addition to our partnership with Civic, we have also partnered with Alameda Research. As one of the largest digital asset firms in the space, Alameda is providing Solrise DEX Pro with initial liquidity to bootstrap all available markets. Liquidity is crucial for any exchange, and we’re happy to have such a strong partner on our side.
We truly believe that Solana will become one of the primary hubs for institutions that want to jump into the DeFi ecosystem, and we think that Solrise DEX Pro will be the best way for them to do so. Our highest aspiration is to offer an intuitive, user-friendly protocol that lets everyone participate in DeFi, and we’re very excited to be opening up new doors for institutional investors as well. Keep an eye on this space for more information about our growing ecosystem — and take a look at the DEX itself on https://dex.solrise.finance/!
