ZKX is a decentralized perpetual futures exchange built on Starknet, offering self-custody and true community governance. The exchange aims to provide the scalability of a centralized exchange (CEX) through its node network architecture and on-chain trading benefits like low transaction costs and account abstraction by building on Starknet. The exchange enables traders to engage in derivative trading on an L2 network with a fast decentralized order book, robust risk management engine, and new funding rate that adapts to the underlying asset’s volatility. ZKX has partnered with industry giants like Amber Group, Huobi, and Crypto.com to serve as market makers and users of its protocol, addressing liquidity and depth of market issues in DeFi. The exchange has also improved its token economics to ensure the staked native token receives a share of the revenue, enabling anyone in the community to participate in the exchange's growth through revenue sharing. The exchange uses a node network that combines the best of virtual AMMs and CLOB without their weaknesses, and the network consists of two fundamental parts - DLOB and DPS. The exchange's innovative features, such as its custom-made consensus algorithm and permissionless node client, make it stand out.
The team is building a decentralized perpetual futures exchange on Starknet, offering self-custody and true community governance, with scalability of a centralized exchange through a node network architecture. The goal is to create a permissionless infrastructure for derivative trading on an L2 network with a fast decentralized order book and robust risk management. Partnerships with industry giants will address liquidity and depth of market issues. Additionally, the token economics have been improved to ensure revenue sharing for staked native token holders.
What is the TECH?
The crypto derivatives market is still evolving, and several models, such as virtual AMMs, Synthetic Models, and CLOB, have their limitations. At ZKX, we’ve taken matters into our own hands and created a node network that combines the best of Virtual AMMs and CLOB without their weaknesses.
The Node Network consists of nodes that use a consensus algorithm for decentralized order matching. We prioritized scalability and performance while building a network that , and the tests reveal the current network can handle over 9000 TPS.
The Node Network has two fundamental parts -
DLOB
DEX users can now switch from automated market makers (AMMs) to a decentralized limit order book (DLOB) without intermediaries.
The DLOB directly interacts between users, smart contracts, and the ZKX node, providing the much-needed security and reliability users demand.
The ZKX Decentralized Node Network hosts the DLOB, data provider services, price engine, and trade matching component, all while ensuring DLOB security through a new custom made consensus algorithm and a future permissionless node client, one of its most innovative features.
DPS
The Data Provider Service (DPS) serves as a bridge between external data sources and ZKX’s pricing allowing for greater flexibility in procuring assets, data sources, and prices.
It enhances the system’s scalability since all order book matches will happen off chain within the node network
That said, all fundamental checks are still within the L2 of Starknet. The order book will always be validated within the ZK-rollups and ZK-proofs framework to ensure security and privacy.
Tokenomics:
ZKX token holders can stake their tokens to gain access to digital shares of ZKX, which is linked to both governance and protocol rewards.
The community has a chance to earn USDC revenue from the ZKX DAO by trading, staking, providing liquidity, or becoming a node provider The more actions a stakeholder performs, the more digital shares of ZKX he will accumulate. Each digital share equals one vote, allowing holders to participate in the DAO and shape the protocol’s direction. However, these tokens are non-transferable and non-tradeable.
This governance mechanism aims to incentivize positive behavior and promote long-term growth. The benefits of holding digital shares include access to protocol fee revenue, discounted trading fees, and unlocking premium features in the exchange.
To keep up with the community and their upcoming updates:
Follow ZKX
ZKX Yakuza: https://yakuza.zkx.fi/
Website: https://zkx.fi/
Twitter: https://twitter.com/zkxprotocol
Discord: https://discord.gg/7YrNHdwNyu
Telegram: https://t.me/zkxcommunity