Zeta — Project Overview
Zeta — is an undercollateralized DeFi derivatives platform providing options and futures trading.
The mission of the platform — to make derivatives available to anyone who wants to use them for the purpose of speculation or hedging, to create a user interface and products that will simplify derivatives trading.
Why did Zeta choose to work with derivatives?
The volume of trading in crypto derivatives is constantly growing. So, as of October 2021, the trading volume amounted to $3.6 trillion, or 57.9% of the total cryptocurrency trading volume. All this suggests that derivatives are very popular with investors. Derivatives allow investors to manage their risk (hedging spot positions) using significantly less capital than a spot position, as well as to conduct speculative operations (including sells). The adoption of derivatives in DeFi is expected to increase as the demand for these services grows. Therefore, Zeta has chosen this direction and is developing in it.
How will Zeta differ from other projects?
Most derivatives DEXs only deal in options or futures. Zeta will aim to provide a full range of derivatives and will therefore launch both options and futures. In addition to this, Zeta will offer collateralized trading and cross margin, further distinguishing it from most peers.
Zeta will be able to provide similar scalability to Uniswap. Also, Zeta will have adjustable leverage, automatic risk management, the possibility of two-way trading (up and down). In addition, trading fees will be minimal, the operation time is less than 1 second.
Zeta automatically creates the appropriate derivatives contracts and markets, offering 46 markets to trade at any given time (only SOL/USD works at the moment)
By using Solana and Serum, Zeta is able to provide high speed and low transaction costs while providing consumers and organizations with a familiar order book trading experience.
Zeta has developed the first fully networked derivatives pricing engine, providing the most accurate prices for options and futures in DeFi. All this is due to the dynamic AMM used by Zeta.
Improving capital efficiency through undercollateralization.
Zeta plans according to the roadmap
Q1 2022
Run the Zeta protocol on the main network based on SOL.
Publish sample code for trade organization and liquidation mechanism.
Integrate Zeta with other protocols.
Launch more assets for trading.
Q2 2022
Develop incentive schemes to increase trading and liquidity on Zeta.
Organize multiple margining.
Launch of perpetual futures.
The project has established quite a few partnerships, including with well-known foundations, which indicates the availability of funding for its implementation.
Zeta is operating in a promising growth market, the project offers a number of significant improvements over existing platforms. I think it’s worth following the development of the project. Below I leave links to the site and social networks.
Everything stated in the article is the personal opinion of the author and is not investment advice. You must do your own research.