Project Serum, a decentralized derivatives exchange for the Solana network, has launched a $100 one thousand thousand liquidity mining program equally part of a broader effort to attract users to the ecosystem.

The initial allocation was approved by Serum'south decentralized autonomous organization, or DAO, the project appear Thursday. The sum, paid out in Serum'southward native SRM token, volition be used equally a reward mechanism for automated market place makers that work straight with Serum's on-chain order book.

Liquidity mining is an effective tool for DeFi protocols as information technology incentivizes automatic market makers to supply liquidity and enhances the network'south overall operation. As a broader concept, liquidity mining refers to a process whereby a project offers its tokens to anyone willing to deposit funds into a smart contract.

Serum Protocol is in a unique position, given Solana'due south enormous growth over the past yr. The smart contract platform has a total market place capitalization of most $60 billion, making it the 6th-largest blockchain project in the globe. As Cointelegraph reported, Solana Labs, the programmer studio incubating Solana projects, raised over $314 million in a private token auction that concluded in June.

Related: Solana DEX raises $18M Series A from Three Arrows Capital, Coinbase Ventures

Serum TVL has exploded over the past month in U.South. dollar terms. Source: defillama

In terms of total value locked, or TVL, Serum Protocol ranks 11th among decentralized exchanges at $i.58 billion, according to manufacture sources. By comparing, Curve has over $18.eight billion in TVL while SushiSwap, PancakeSwap and Uniswap each have over $v billion.