Zaros, a decentralized exchange (DEX), has made history by becoming the first EVM-compatible perpetual DEX to join the Cointelegraph Accelerator program. This platform allows traders to engage in perpetual futures trading, while liquidity providers can earn extra yield by providing liquid staking tokens (LSTs) and liquid restaking tokens (LRTs) as liquidity.
The world of decentralized finance (DeFi) often presents traders with frustrating challenges. Liquidity is spread out across numerous platforms, making it difficult to find the best prices and trading pairs. The user interfaces of DeFi platforms can be overly complex, discouraging newcomers and making trading more complicated than necessary.
Slow settlement times can also be a source of frustration, leading to missed trade opportunities. High slippage is another issue, where trades end up at different prices than expected, eating into profits. Moreover, dealing with multiple blockchains for different assets creates a confusing and fragmented trading environment.
To address the liquidity and user experience challenges in DeFi, Zaros aims to provide deep liquidity across a wide range of markets, including cryptocurrencies, commodities, and forex. Their eClusters system and Smart Funding Algorithm group assets with similar risk parameters, enabling rapid and efficient allocation of liquidity to new markets.
Zaros employs account abstraction to enhance the user experience by concealing blockchain technicalities during interactions. The platform also supports social login and one-click trading for accessibility and ease of use.
For high-frequency trading and interoperability, Zaros leverages Chainlink’s Data Streams to ensure faster order execution, better settlement prices, and protection against front-running. It also allows traders to deposit a wide range of assets as collateral into their Zaros accounts from Arbitrum and Monad, ensuring a seamless cross-margin trading experience.
In addition to improving the trading experience, Zaros addresses the challenges faced by liquidity providers (LPs) in DeFi. LPs often struggle with limited staking yields, as LSTs and LRTs are typically confined to Ethereum’s staking yield.
Zaros offers several solutions to these challenges. Seventy percent of trading fees are paid to LP vaults in Ether (ETH), allowing LPs to earn a share of the protocol’s trading fees in addition to Ethereum’s staking yield.
The protocol also utilizes USDz, an overcollateralized stablecoin backed by LST vaults, and an eClusters system inspired by Aave’s eMode to efficiently distribute credit between markets while remaining delta-neutral. This means that Zaros balances its positions to avoid exposure to market movements.
Furthermore, Zaros Liquidity Providing Vaults (ZLP Vaults) represent each LP’s stake in the protocol’s liquidity. It is pegged to the underlying assets of the vault, such as wstETH and weETH, thus maintaining DeFi composability while unlocking an additional layer of yield.
Zaros has a vision for the future where decentralized derivatives significantly penetrate centralized finance (CeFi) and traditional finance (TradFi) audiences within the next five years. They believe that by focusing on user experience, education, and delivering value with safety and credibility, this transformation can be achieved. This outcome can drive greater adoption and integration of DeFi in mainstream financial markets.
Learn more about Zaros at their website.
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