Decentralized derivatives racing currently has two main solutions based on protocol types:
1. The Vault model represented by GMX, where LPs act as counterparties to traders, with the trading price determined by Oracle feed.
2. The Order Book model represented by dYdX, with off-chain matching and on-chain settlement.
While these solutions are widely adopted in the market, they come with potential risks. The Vault model is susceptible to Oracle price manipulation, leading to losses, while the Order Book’s off-chain matching and on-chain settlement lack transparency.
In the realm of decentralized derivatives protocols, the influence of individual protocols is limited. The entire on-chain derivatives trading market is still in its infancy, with an undetermined market landscape. Winning in this competition poses a significant challenge for each existing protocol to shape the future.
Among the numerous decentralized derivatives protocols, ZKX, a derivative protocol based on the Starknet ecosystem, adopts the Order Book model. Through differential deployment, ZKX offers users a seamless on-chain trading experience and security comparable to or even surpassing CEX fluidity. OG Trade and Pro Trade cater to users with varying degrees of trading options, while ZKX AppChain records all transactions on-chain, ensuring transparency and security. ZKX accounts and Starkway provide new users with a seamless onboarding process and simplified procedures.
Founded in 2021, ZKX’s founders, Eduard and Naman, previously held leadership positions at SOSV, a top global venture capital firm managing assets exceeding $1.2 billion. The main team boasts experienced individuals from companies like PayTM, Flipkart, and Byju’s, spanning 8 countries.
In April 2022, ZKX received funding from StarkWare, the parent company of Starknet. In July 2022, ZKX secured a $4.5 million seed round with investors including StarkWare, HashKeyAmber Group, Crypto.com, DragonFly Capital, and Ashwin Ramachandran as a general partner.
ZKX enhances the trading experience by gamifying options, making trading more social and enjoyable for users. Leveraging ZKX AppChain, ZKX combines CEX efficiency with DeFi self-custody and trustlessness, offering broader scalability and high-speed API. According to official data released on June 5th, ZKX’s trading volume reached $2.3 billion in the past 30 days, with over 24.6K ZKX accounts created and over 2 million transactions, exceeding $300 million in STRK trading volume alone.
ZKX’s protocol token, $ZKX TGE, is set to launch on June 19th and will be listed on Kucoin and Gate. The promised first-phase airdrop was distributed to users’ accounts on June 17th at 3 PM.
OG Trade & Pro Trade on ZKX offer different levels of trading experiences to users. OG Trade introduces gamified elements for short-term and swing traders, providing a visually appealing real-time trading interface and 30-minute trading competitions. Pro Trade caters to intermediate and advanced traders with all types of orders, advanced trading features, public API, and sophisticated tools.
ZKX AppChain bridges the performance and security gap by utilizing a full-chain layer developed using Substrate SDK. ZKX AppChain, based on the Starknet ecosystem, operates as an L3 public chain. On the AppChain, the order book and Substrate manage transaction processing and verification, enhancing ZKX’s decentralization and transparency for secure on-chain derivatives trading.
ZKX has expanded to process 3 blocks per second and support over 2,000 API requests every 10 seconds, offering efficient gas-less trading for a CEX-like experience with asset security.
ZKX AA accounts simplify the process of recording private keys and fund entry for new users, allowing seamless transition from CEX to decentralized trading. ZKX AA accounts serve as decentralized accounts on Ethereum L2, bridging users to Starknet without multiple complex steps, enabling gas-less transactions. These accounts will also serve as a hub for DeFi applications, including staking and other DeFi products, within a user-centric DApp.
Starkway, a native cross-chain bridge, facilitates seamless fund transfers between Ethereum L1 and Starknet, ensuring transparency and trustlessness. Users can easily deposit funds from Ethereum L1 to ZKX AA accounts on Starknet, participate in ZKX activities, and receive rewards.
In conclusion, the decentralized derivatives trading market is on the verge of explosive growth, with the potential to reach trillions of dollars. ZKX’s core strengths lie in its decentralized order book, high performance, and liquidity, along with ZKX AppChain and ZKX AA accounts, offering users a secure and seamless experience. By addressing existing protocol issues and risks through unique strategies, ZKX emerges as a strong competitor in the decentralized derivatives race.
