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The arrival of early token-swap and lending protocols signified the emergence of the decentralized finance (DeFi) industry in 2017–2018. However, it didn't take long for more advanced forms of trading — including derivatives trading — to appear on the menu. Decentralized derivatives platforms flourished, quickly becoming a prominent niche within the DeFi ecosystem. Fast-forward to mid-2024, and the derivatives category of the DeFi market is approaching a total value locked (TVL) of $4 billion.
Yet, despite all this growth, many decentralized derivatives platforms operate as if it's still 2018. With Ethereum (ETH) the largest blockchain hosting DeFi protocols, derivatives exchanges are encumbered with tardy settlement times and exorbitant gas fees. Additionally, onerous overcollateralization requirements are still the reality for many blockchain-based derivatives trading platforms.
One project within the space is notably different, though. Zeta Markets is a decentralized derivatives trading protocol on the Solana (SOL) blockchain that features lightning-fast sub-second transaction settlement times, minimal gas fees and the ability to trade via undercollateralized positions. The platform owes many of its benefits to Solana's stellar technical parameters. Others, however, are a function of the protocol's unique architecture.
Key Takeaways:
Zeta Markets is a Solana-based crypto derivatives exchange that offers DeFi traders several distinct advantages — nominal gas fees, sub-second order settlement, undercollateralized trading, and a highly efficient and familiar central order book model.
The platform leverages its fast settlement times, pricing oracles, collateral system and dynamic liquidation mechanism to provide trading opportunities that are unique and undercollateralized.
Its native token, ZEX, is used for staking, governance and user incentivization. ZEX can be bought on Bybit as a Spot pair (ZEX/USDT).