An overview of Zeta Markets - DEX Trading
The Decentralised Trading narrative is growing. Today we look at Zeta Markets, an under-collateralised derivatives platform built on Solana.
At the time of writing, the Solana market cap is $8.95 billion with a 24-hour volume of $455 million. The price of SOL is $23.66 and market dominance is 0.83%. The Total Crypto Market Cap is $1.09T, down 1.02%. The NFT transaction volume surpassed 629,670 SOL, closing in on $15M in the last 7 days.
Summary
Introduction
Why choose a DEX over a CEX?
What is Zeta Markets?
Key Features
Trading Pairs
Improving Security with Chainlink
Rewards Program
DEX Trading on Solana
Conclusion
Introduction
The FTX fiasco brought a lot of uncertainty to the crypto markets. It also brought attention to how unsafe having money on centralised exchanges is. Lack of transparency and honest communication was the norm among companies like FTX, Celsius and more.
In a year of damage and pain for centralised players, many pivoted to decentralised protocols.
Decentralised Exchanges have improved their user experience and functionality over the course of the last 365 days. With it, its capacity of handling high volume and users has increased.
Unfortunately, DeFi is still very targeted by exploits and hackers, showing evidence that there is a long road ahead for these protocols when it comes to safety.
The positive With each exploit taking place, a new security standard is introduced.
Why choose a DEX over a CEX?
Safety is a top priority when it comes to trading cryptocurrencies. Centralised exchanges keep funds in intermediary accounts, which can be easily hacked. Decentralised exchanges are more secure because they do not require such accounts. Instead, with a self-custody wallet, traders have control over their funds.
Even though centralised exchanges have the majority of the volume transacted, decentralised exchanges are becoming increasingly popular among crypto traders. Decentralised exchanges offer users control over their accounts, unlike centralised exchanges which give the platform more control over their users.
Decentralised exchanges tend to have lower fees than centralised exchanges.
Although centralised exchanges play an important role in crypto, the increase in popularity of decentralised exchanges signals an increase in market share.
🟣 What is Zeta Markets?
Zeta Markets is an under-collateralised derivatives platform with a fully on-chain risk engine and Central Limit Order Book (CLOB). It is a user-friendly platform with all the functionalities needed for any trader looking to trade on leverage in a decentralised setting.
Key Features
Zeta Markets offers USDC Margin trading for investors seeking an edge in the market. With isolated margin accounts per asset and up to 10x leverage, traders can adapt and refine their investment strategies to suit their needs.
One of the key features of the platform is under-collateralisation. Investors can trade options, dated futures, and perpetual swaps without fully collateralising their position. Its fully on-chain order book provides transparency and security for all transactions on the platform.
In addition, users can interact with the DEX via the UI or programmatically using Zeta’s SDK/CPI programs.
With these tools, investors have complete control over their trading experience.
Trading Pairs
Currently, Zeta Markets supports trading the following pairs:
BTC-PERP
ETH-PERP
SOL-PERP
APT-PERP
Improving Security with Chainlink
Zeta has integrated Chainlink price feeds. Using Chainlink’s reliable, fast, and decentralised price feeds, Zeta can enhance the performance of the trading experience. The integration of Chainlink’s price feeds is important to guarantee that contracts are settled with precision.
Blockchain oracles play a major role in DeFi protocols. They enable platforms like Zeta to access secure and dependable financial data that can be used on the blockchain, allowing for the creation of innovative and transparent financial products.
Rewards Program
Zeta Markets has created and maintained several incentives to accelerate adoption.
Taker Rewards
2,000 USDC every week for traders on Zeta
Maker Rewards
1,250 USDC every week for market making on Zeta
Referral Rewards
Earn up to 20% of referred trading fees
DEX Trading on Solana
Most Layer 1s and Layer 2s do not meet the criteria for successfully handling millions of users using decentralised trading protocols. Solana stands out as one of the most, if not the most, suitable blockchains for this purpose, and there are several reasons why.
There are several reasons why Solana is one of the best blockchains for trading on decentralised protocols. With its low latency and high TPS, Solana enables high-frequency trading while operating smoothly. Additionally, its virtually non-existent fees effectively reduce friction, making transactions seamless.
Conclusion
The decentralised trading narrative has gained traction on both Ethereum and Solana, especially since the collapse of FTX.
As the narrative continues, Zeta Markets is working towards becoming the leading decentralised derivatives platform on Solana.