Zeta Markets, a prominent decentralized exchange (DEX) operating on the Solana blockchain, has revealed the introduction of ZX (Zeta X), an advanced Layer 2 solution poised to transform derivatives trading on Solana. Scheduled for launch in early 2025, ZX is set to elevate performance, scalability, and user experience on the platform.
ZX is described as an optimistic rollup integrated with the Solana blockchain, utilizing zero-knowledge (zk) proofs for trustless on-chain settlement. This innovative strategy combines Solana’s Layer 1 capabilities for data availability and settlement with an off-chain matching engine, creating a platform that rivals centralized exchanges in efficiency while retaining the advantages of on-chain trading such as self-custody, transparency, proof of reserves, and verifiability of state changes.
Key features of ZX include:
– High Throughput: Capable of handling up to 10,000 transactions per second.
– Low Latency: Sub 10-millisecond transaction confirmations, comparable to top 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 establish new benchmarks in decentralized trading, stating, “Our objective with Zeta X is to redefine the performance standards of decentralized trading. It represents Zeta Markets’ next step in pushing the boundaries of decentralized finance on Solana. By leveraging Solana’s Layer 1 strengths and the capabilities of a purpose-built L2, ZX will offer traders an unmatched experience in terms of speed, efficiency, and security.”
Revolutionizing Derivatives Trading on Solana
Solana’s decentralized finance (DeFi) sector has experienced substantial growth, with monthly volumes averaging nearly $250 billion in early 2024, highlighting its prominence in the DeFi landscape. Zeta Markets’ decision to construct ZX on Solana aligns strategically with the chain’s increasing significance.
The $Z token, which currently serves 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 provide exclusive fee tiers for long-term participants, fostering community involvement and aligning interests with the protocol’s objectives.
The development of ZX is progressing 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: Thorough testing and security audits, with results publicly disclosed.
– Q1 2025: Mainnet launch, including phased deployment and educational initiatives.
Established in 2021, Zeta Markets has swiftly emerged as a leader in on-chain perpetual trading, achieving over $7 billion in cumulative trading volume. The platform is supported by notable investors including Electric Capital, Jump Capital, Wintermute, Solana Ventures, Race Capital, DACM, and Airtree Ventures, among others. With ZX, Zeta Markets aims to lead a new era in decentralized derivatives trading, delivering traders unparalleled speed, efficiency, and security on the Solana blockchain.