Zeta Markets, an innovative decentralized exchange (DEX) operating on the Solana blockchain, has unveiled its latest breakthrough in derivatives trading: ZX (Zeta X). This cutting-edge Layer 2 solution, set to launch in early 2025, is poised to revolutionize the way derivatives are traded on Solana, promising improved performance, scalability, and user experience.
ZX is built on Solana’s blockchain as an optimistic rollup, utilizing zero-knowledge (zk) proofs for trustless on-chain settlement. By combining Solana’s Layer 1 capabilities for data availability and settlement with an off-chain matching engine, ZX offers a platform that rivals centralized exchanges in terms of performance, while retaining the benefits of on-chain trading, such as self-custody, transparency, proof of reserves, and verifiability of state changes.
Key features of ZX include high throughput, with the ability to process up to 10,000 transactions per second, and low latency, providing transaction confirmations in under 10 milliseconds, comparable to leading centralized exchanges. Additionally, ZX offers seamless one-click trading and leverage options of up to 50x with multiple collateral choices.
Tristan Frizza, the Founder of Zeta Markets, expressed the company’s ambition to redefine decentralized trading through Zeta X. He stated, “Our goal with Zeta X is to set new performance standards in decentralized trading. It is our next milestone to push the boundaries of decentralized finance on Solana. By leveraging Solana’s Layer 1 strengths and harnessing the power of a purpose-built L2, ZX will provide traders with an unparalleled experience in terms of speed, efficiency, and security.”
Zeta Markets’ decision to build ZX on Solana is strategically aligned with the chain’s growing significance in the decentralized finance (DeFi) ecosystem. Solana has experienced substantial growth, with monthly volumes averaging around $250 billion in early 2024, solidifying its position in the DeFi landscape.
The native gas token for transactions on the ZX rollup will be the $Z token, which also serves as the governance token for Zeta Markets. This token will incentivize stakeholders and offer exclusive fee tiers for long-term participants, fostering community engagement and aligning interests with the protocol’s objectives.
The development of ZX is progressing rapidly, with a detailed roadmap outlined in the ZX Litepaper. The timeline includes initial core architecture development in Q2 2024, a testnet launch in Q3 2024 for performance evaluation and user feedback, comprehensive testing and security audits in Q4 2024 (with results made public), and finally, the mainnet launch in Q1 2025, which will include a phased roll-out and educational campaigns.
Zeta Markets, founded in 2021, has quickly established itself as a leader in on-chain perpetual trading, accumulating over $7 billion in trading volume. The platform has secured notable investments from Electric Capital, Jump Capital, Wintermute, Solana Ventures, Race Capital, DACM, Airtree Ventures, and others. With the introduction of ZX, Zeta Markets aims to pioneer a new era in decentralized derivatives trading, providing traders with unparalleled speed, efficiency, and security on the Solana blockchain.
Tags: SOL
