Zeta Markets, a prominent decentralized exchange (DEX) operating on the Solana blockchain, has unveiled its latest innovation called ZX (Zeta X). This advanced Layer 2 solution is set to revolutionize derivatives trading on Solana and is scheduled to launch on the mainnet in early 2025. ZX aims to boost performance, scalability, and user experience on the platform.
ZX is designed as an optimistic rollup that utilizes zero-knowledge (zk) proofs for trustless on-chain settlement. By combining Solana’s Layer 1 capabilities for data availability and settlement with an off-chain matching engine, ZX achieves a performance level comparable to centralized exchanges while retaining the advantages of on-chain trading, including self-custody, transparency, proof of reserves, and verifiability of state changes.
The key features of ZX include high throughput, capable of processing up to 10,000 transactions per second, and low latency with transaction confirmations taking less than 10 milliseconds, similar to leading centralized exchanges. It also offers seamless one-click trading and leverage options of up to 50x with multiple collateral choices.
Tristan Frizza, the Founder of Zeta Markets, expressed the company’s vision to establish new standards in decentralized trading. He stated that Zeta X aims to redefine the performance standards of decentralized trading and push the boundaries of decentralized finance on Solana. By leveraging the strengths of Solana’s Layer 1 and a purpose-built L2, ZX will provide traders with an unparalleled experience in terms of speed, efficiency, and security.
The decision to build ZX on Solana aligns strategically with the growing importance of Solana’s decentralized finance (DeFi) ecosystem. In early 2024, the monthly volumes in Solana’s DeFi ecosystem averaged close to $250 billion, indicating its significant presence in the DeFi landscape. The native gas token for transactions on the ZX rollup will be the $Z token, which already serves as the governance token for Zeta Markets. It will incentivize stakeholders and offer exclusive fee tiers for long-term participants, fostering community engagement and aligning interests with the protocol’s goals.
The development of ZX is progressing rapidly, with a detailed roadmap outlined in the ZX Litepaper. The roadmap includes initial core architecture development in Q2 2024, followed by a testnet launch in Q3 2024 for performance evaluation and user feedback. Comprehensive testing and security audits will be conducted in Q4 2024, with the results made public. Finally, in Q1 2025, the mainnet launch will take place, including a phased roll-out and educational campaigns.
Established in 2021, Zeta Markets has quickly emerged as a leader in on-chain perpetual trading, accumulating over $7 billion in trading volume. The platform is supported by notable investors such as Electric Capital, Jump Capital, Wintermute, Solana Ventures, Race Capital, DACM, and Airtree Ventures, among others. With the introduction of ZX, Zeta Markets aims to pioneer a new era in decentralized derivatives trading, offering traders unprecedented speed, efficiency, and security on the Solana blockchain.