Zeta Markets, a prominent decentralized exchange (DEX) built on the Solana blockchain, has introduced ZX (Zeta X), an innovative Layer 2 solution designed to transform derivatives trading on Solana. Expected to launch on the mainnet in early 2025, ZX is poised to improve performance, scalability, and user experience on the platform.
ZX is a rollup solution developed on the Solana blockchain, utilizing zero-knowledge (zk) proofs for secure on-chain settlements. By combining Solana’s Layer 1 features for data availability and settlement with an off-chain matching engine, ZX offers a high-performance platform that competes with centralized exchanges while retaining the benefits of on-chain trading such as self-custody, transparency, proof of reserves, and verifiability of state changes.
Some key features of ZX include:
– High Throughput: Capable of handling up to 10,000 transactions per second.
– Low Latency: Transaction confirmations in under 10 milliseconds, similar to centralized exchanges.
– One-Click Trading: Streamlined trading experience for users.
– Leverage Options: Up to 50x leverage with various collateral choices.
Tristan Frizza, the Founder of Zeta Markets, expressed the company’s vision to set new benchmarks in decentralized trading with ZX, stating, “Our aim with Zeta X is to redefine the performance standards of decentralized trading. It is Zeta Markets’ next step to push the boundaries of decentralized finance on Solana. By leveraging Solana’s Layer 1 strengths and utilizing a purpose-built L2 solution, ZX will provide traders with unmatched speed, efficiency, and security.”
The growth of Solana’s decentralized finance (DeFi) ecosystem has been remarkable, with monthly volumes reaching around $250 billion in early 2024, highlighting its prominence in the DeFi space. Zeta Markets’ decision to launch ZX on Solana aligns strategically with the blockchain’s increasing significance.
The $Z token, serving as the governance token for Zeta Markets, will also function as the native gas token for transactions on the ZX rollup. It will incentivize stakeholders and offer exclusive fee tiers for long-term participants, promoting community involvement and aligning interests with the protocol’s objectives.
The development of ZX is advancing rapidly, with a detailed roadmap outlined in the ZX Litepaper:
– Q2 2024: Initial core architecture development.
– Q3 2024: Testnet launch for performance evaluation and user feedback.
– Q4 2024: Rigorous testing and security audits, with results publicly disclosed.
– Q1 2025: Mainnet launch, including phased roll-out and educational campaigns.
Established in 2021, Zeta Markets has emerged as a leader in on-chain perpetual trading, surpassing $7 billion in cumulative trading volume. The platform is supported by prominent investors like Electric Capital, Jump Capital, Wintermute, Solana Ventures, Race Capital, DACM, and Airtree Ventures, among others. With ZX, Zeta Markets aims to lead the way in decentralized derivatives trading, offering traders unparalleled speed, efficiency, and security on the Solana blockchain.