The decentralized derivatives track currently has two main solutions in terms of protocol types:
The Vault model represented by GMX, LP as the trader’s opponent The transaction price is determined by Orcale's price feed.
The order book model represented by dYdX enables off-chain matching and on-chain settlement.
Although these two solutions are widely adopted by the market, there are some potential risks. The Vault model is prone to Orcale price manipulation, causing losses; while the order book has off-chain matching and on-chain settlement. And lack of transparency.
Among the many decentralized derivatives protocols currently running, the influence of a single protocol is limited. The entire on-chain derivatives trading market is still in a barbaric era, and the market structure is undetermined. How to win this competition is a huge challenge that will determine the future for every existing agreement.
The derivatives protocol ZKX based on the Starknet ecosystem also adopts the order book model, but through differentiated deployment, it provides users with an on-chain transaction experience and security that is comparable to or even exceeds the smoothness of CEX. OG Trade and Pro Trade provide a variety of trading options for users of different levels; ZKX AppChain records all trading processes on the chain, with both transparency and security; ZKX Account and Starkway provide a seamless onboarding channel for new users and streamlined procedures.
ZKX was founded in 2021. Two of its founders, Eduard and Naman, previously held leadership positions at SOSV, one of the world's top venture capital firms with assets under management More than $1.2 billion. The main team has experienced people from companies like PayTM, Flipkart and Byju's spread across 8 countries.
ZKX received funding from StarkWare (the parent company of Starknet) in April 2022. In July 2022, ZKX raised US$4.5 million in seed round financing. Investors include StarkWare, HashKeyAmber Group, Crypto.com, and DragonFly Capital. General Partner Ashwin Ramachandran et al.
#ZKX provides users with a more interesting trading experience by providing gamified trading options, making trading social. Leveraging ZKXAppChain, ZKX combines the efficiency of CEX with the self-custody and trustlessness of DeFi, providing broader scalability and high-speed APIs. ZKX is currently deployed on Ethereum and Starknet. According to data released by the official .
ZKX’s protocol token $ZKX TGE will be held on June 19, and it has been confirmed that it will be listed on Kucoin and Gate at the same time. The first airdrop promised to users has been distributed to users’ accounts at 3 pm on June 17.
General on-chain derivatives platforms use static trading pages. Traders of different levels are forced to use the same interface. Users have no Room for choice. ZKX innovatively divides transactions into OG Trade and Pro Trade, which are used by users of different levels.
OG Trade brings a simpler and more interesting trading experience for short-term and swing traders by introducing gamification elements. OG Trade provides 30-minute trading competitions and provides visual real-time trading data on the interface to help junior users obtain trading profits in a short period of time.
Profit, loss and trading volume can all earn unique gold, silver and bronze badges, each category is unique. These badges mark a user's worth as a trader in the OG Trading Competition.
Pro Trade is built for more experienced intermediate and advanced traders, including all types of orders, complex trading functions, public APIs, advanced tools, etc. Etc., professional traders, large-capital players and proprietary trading companies can easily trade in Pro Trade.
OG Trade and Pro Trade meet the needs of different types of traders in two different ways. Still, users don’t need to worry about liquidity and depth issues, as both trading methods share the same on-chain order book on ZKX.
Some on-chain derivatives protocols use the order book model to improve performance, such as dYdX, Aevo, etc., but this form is based on the chain It operates in the mode of off-chain matching and on-chain clearing. The off-chain matching process lacks transparency and carries a certain risk of evildoing. ZKX perfectly bridges the gap between performance and security through ZKX AppChain.
ZKX Appchain is a full-chain layer developed using Substrate SDK, which seamlessly connects users to ZKX through multiple L1s and Rollups. It has a middle layer in the stack responsible for synchronizing assets and state data between Starknet and the parallel Rollup and ZKX AppChain built with its SDK. Therefore, ZKX AppChain is actually an L3 public chain based on the Starknet ecosystem.
ZKX order books all run on ZKX AppChain. Transactions on ZKX are not subject to any on-chain speed and gas cost restrictions. Even if there is congestion on the chain, ZKX users can still enjoy smooth gas-free transactions and continuous Liquidity and operability.
On Appchain, the order book and Substrate manage transaction processing and verification, and any transaction records are traceable and queryable, which further enhances the decentralization of ZKX Degree and transparency provide the possibility for safe and trustworthy on-chain derivatives transactions.
ZKX has expanded to 3 blocks per second and supports more than 2,000 API requests every 10 seconds. This gas-free and efficient transaction can provide users with a trading experience comparable to CEX while ensuring the security of user assets. safety.
Although most on-chain derivatives protocols are using various strategies to attract new users, the threshold for on-chain operations is extremely high, which makes it impossible for new users to trade The most fundamental reason for moving from CEX to on-chain. How to lower the entry threshold for new users and allow these users to seamlessly experience the decentralized trading system is the current focus.
Account abstraction with a seamless experience similar to CEX, combined with the security and privacy provided by DEX, is a must for mass blockchain adoption. ZKX is the first platform among decentralized derivatives protocols to integrate account abstraction. Leveraging Starknet's native account abstraction and Starkway as an L1 to L2 bridge. ZKX AA accounts are currently deployed on the Starknet mainnet using Cairo 1.0. In the future, it will be expanded to other L1s and more Rollups to provide users with a seamless full-chain transaction experience.
Using ZKX AA account can simplify the process of users recording private keys and simplify the process of fund entry. As a decentralized account on Ethereum L2, users can seamlessly bridge to Starknet and eliminate multiple complicated steps to start gasless transactions directly using ZKX AppChain. The ZKX AA account will also serve as a one-stop DeFi application hub for users, with features for staking and other DeFi products in addition to perpetual trading, all included in a user-centric DApp.
In the multi-chain era, cross-chain bridges are an important infrastructure for connecting blockchains. Starkway consists of Solidity smart contracts on Ethereum and Cairo contracts on Starknet. Through the L1-L2 messaging mechanism provided by Starkware, Starkway can help users seamlessly transfer funds between L1 and Starknet through a trustless and sufficiently transparent mechanism.
Currently, users can use Starway to easily deposit directly from Ethereum L1 to ZKX AA accounts on Starknet, and it can also be used in ZKX events such as airdrops and clan NFTs. Starkway also has messaging capabilities that allow ZKX to check the eligibility of L1 wallets and distribute rewards accordingly.
Through Starkway, ZKX has opened up the entry and exit channels for funds. Different chains are no longer barriers to funds, and users can seamlessly experience any service provided by ZKX.
The decentralized derivatives trading market is on the eve of an explosion, with growth potential of trillions of dollars. At present, the overall pattern of on-chain derivatives protocols has not yet been finalized, which provides innovative projects with valuable breakthrough opportunities and is also a critical moment to compete for market share.
The core advantage of ZKX is the use of decentralized order books, which feature high performance and large liquidity. Combined with ZKX AppChain and ZKX AA accounts, users across the chain can use it safely and seamlessly in a simplified process. ZKX Services. It provides users with smooth and gas-free transactions that are comparable to CEX, but also has the security and decentralization of DEX.
Through its unique differentiation strategy, ZKX is committed to solving the problems and risks in existing protocols and is a strong competitor in the decentralized derivatives track.
ZKX tokens will be launched for online trading on June 19th. The total amount of $ZKX tokens is 100 million. The initial circulation is small. The IDO valuation is 50 million US dollars. The valuation is reasonable. You can pay attention to the price after listing. .
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