Zaros, a decentralized exchange (DEX), is aiming to overcome the challenges faced by DEXs such as limited liquidity, high fees, and complex interfaces. Its goal is to provide a trading experience that rivals centralized exchanges (CEXs) in terms of convenience and variety.
While the total transaction volume of DEXs has exceeded $1 trillion in the past year, they still face obstacles that prevent widespread adoption. One of the main issues is the lack of market participants compared to CEXs, leading to price slippage on large trades. Additionally, liquidity is often fragmented across multiple platforms, making it difficult to find the best prices.
During periods of network congestion, DEXs can impose higher transaction fees. Moreover, most decentralized platforms are not as user-friendly as their centralized counterparts.
However, Zaros is one of the platforms that is bridging the gap between decentralized and centralized trading experiences. It offers a cross-margin trading experience through its perpetual DEX, which is powered by boosted restaking vaults. This allows users to trade perpetual futures with no expiration date and up to 100x leverage.
To attract liquidity providers, Zaros introduces liquid staking tokens (LSTs) and liquid restaking tokens (LRTs). LSTs are tokens received in exchange for staking assets, which can be traded or used elsewhere. LRTs add an additional layer of staking to earn extra rewards.
Zaros differentiates itself by offering up to 100x leverage on Arbitrum, an Ethereum layer-2 platform known for fast transactions and low fees. It also plans to be available on Monad, a layer-1 blockchain with rapid processing and high throughput. Traders can deposit a wide range of assets as collateral from both platforms, enabling seamless cross-margin trading without the risk of liquidation.
To enhance user access, Zaros supports social integration, allowing users to log in with Apple ID or Gmail. The platform also features a sub-account system, enabling users to implement different margin strategies or mimic isolated margins simultaneously.
Zaros manages trading using skew caps and open interest caps, resulting in higher total value locked and providing users with more experimental trading alternatives like memecoins.
For liquidity providers to earn real returns in ETH from trading fees, Zaros offers single-sided liquidity pools through its ZLP Vaults, supporting LSTs and LRTs. It has also introduced a stablecoin called USDz, which is over-collateralized and created when paying traders’ gains, ensuring reliability for transactions.
Zaros has attracted over 3,000 users since launching its testnet in February. It plans to launch its native token, ZRS, through a liquidity bootstrapping pool on Fjord Foundry, followed by elections for the Zaros DAO council. The platform is expanding its presence in the decentralized finance (DeFi) ecosystem through partnerships with EtherFi, Redacted Cartel, and Yield Nest.
In the DeFi space, there is potential to capture a significant share of the market currently dominated by centralized services. To achieve this, DeFi platforms must improve the user experience and ensure equity in existing products. As DEX platforms continue to innovate, the transparent, decentralized, and composable structure of DeFi ecosystems will undoubtedly attract more users.
Learn more about Zaros and its offerings as it expands its presence in the DeFi space.