Introducing ZKX — The first permissionless swap protocol on StarkNet
After months of building in stealth, we're excited to introduce ZKX!
Who are we
ZKX is a permissionless protocol for derivatives built on StarkNet, with a decentralized order book and a unique way to offer complex financial instruments as swaps.
The team brings extensive experience in venture building, technology scaleups, and financial derivatives structuring in 8 countries across the globe.
ZKX is Trustless, Permissionless, and Borderless. Our mission is to democratize access to global yields through our offerings to anyone, anywhere.
What are we building
When we set out to build ZKX, we wanted to break the 'decentralization illusion' that plagues the current ecosystem. For this purpose, we identified a core set of problems:
Firstly, current DeFi projects are heavily reliant on oracles, liquidity providers, and centralized listing mechanisms. Secondly, in the case of newly created tokens, it is difficult to create hedging mechanisms to protect from volatility and impermanent loss. Thirdly, bootstrapping depth-of-market and liquidity for new derivatives is challenging without incentive structures that bring market makers and traders together.
By building a protocol that enables trading derivatives of assets on StarkNet with built-in rewards mechanisms, liquidity provisioning, and complex trading strategies, we're delivering DeFi as it was meant to be. The five essential properties that differentiate the ZKX protocol from others are :
- Powered by a DAO: A novel architecture where the DAO is placed on top of the open-source protocol to coordinate growth, enabling DAOs and projects to list derivatives markets for their tokens and offer incentives for the community to trade them.
- Decentralized Limit Order Book (DLOB): A unique node network that will help scale the derivatives exchange with a permissionless node client. The node network will provide price feeds directly to the exchange to improve efficiency for both retail and high-frequency institutional traders. The consensus algorithm will enable trust and security within the network while custody of funds will always remain with the user (fully non-custodial).
- Financial Innovation: A revamped funding rate will adapt to the underlying asset's volatility, providing a premium on riskier assets to incentivize stakeholders to maintain balance in the orderbook. This allows us to offer perpetual swaps with innovative payoff structures inspired by well-known option strategies, like the Straddle, Strangle, and Butterfly Spread.
- Swap Liquidity Mining: DAOs, protocols, and community stakeholders will be able to list new assets and offer incentives to trade these new perpetual swaps with any ERC-20 pair of their choice. By enabling a native liquidity bootstrapping mechanism, ZKX's open-source derivatives protocol can grow along with the community.
- L2 scaling: Our simple trading interface is powered by StarkNet, StarkWare's ZK rollup. We're talking low fees, instant settlements, fast withdrawals on the platform, and the support of the ever-growing StarkWare ecosystem.
- Whitepaper V1
- Community Incentives Program
- Testnet launch
- Token Launch
- Governance & Staking
- Q3 2022
Don't forget to Sign up to become an early adopter, and you can find ZKX on: