Magnety Intern

Hello there 🐺 As you know, @magnetyfi cannot be effective without a strong DeFi ecosystem on #Starknet. Fortunately, innovative DeFi protocols are being built and giants are coming. Let's discover the #DeFi landscape of Starknet 1/21

To accomplish its goals, ZKX closed a $4.5M seed round with @StarkWareLtd and a series of leading venture capital firms, including @AlamedaResearch, @HuobiGlobal, and @cryptocom 25/26

In a few words, this mechanism allows: 👉Anybody to bring data to the decentralized network 👉To verify and validate the data 👉To obtain a consensus on the price validity 👉To bring this data to the protocol 24/26

This system is like a massive price engine that can take any data and bring it to ZKX. So, the nodes will be able to provide price feeds from oracles, API, and other data sources. 23/26

It will function as an internal oracle provider if DAO members want to register new assets that existing oracles do not list 🤯 Thus, the Data provider service allows flexibility in the network's data, the type of assets offered, and the prices that can be obtained. 22/26

To overcome these problems, ZKX builds its own Decentralized Limit Order Book (DLOB) by setting up a decentralized and permissionless node's network, which will have its own consensus and data availability layer. This DLOB can be considered as an L3. 21/26

4/ Finally, there are two other problems that ZKX wants to solve: 👉classic vAMM are not capital efficient for derivatives 👉DEX are too dependent on oracles and the pairs they support 20/26

👉An incentive mechanism offering premiums on the riskiest assets for traders to maintain balance and liquidity. All of this allows DeFi users to use tools that are increasingly sophisticated and similar to those of TradFi 🤵‍♂️ 19/26

👉The Adaptive Balancing Rate (ABR) allows to easily and quickly adapt the funding rate according to the asset's volatility, which is particularly interesting for new token listings The ABR provides a premium to funding rates when an asset suddenly becomes highly volatile 18/26

3⃣There is a lack of financial innovation from DEX compared to TradFi. ZKX offers several that provide similar TradFi tools. For example, we can mention : 👉T-Swap is a mechanism that enables users to trade simple perpetual swaps with different payoff structures 17/26

According to this, the algorithm will assign a score to each user, and the users will receive rewards based on this score: 👉VGS 🗳️ 👉A project's incentive in ERC20💰 Thus, this open system will facilitate the projects' listing and attracts liquidity by rewarding traders 16/26

The High Tide algorithm will analyze the users' behavior in each season based on criteria such as: 👉Trading behavior 👉Trading consistency 👉Trades duration 👉Volume 👉Overall participation 15/26

2/ Another problem is that DEX don't have an efficient mechanism to bootstrap liquidity. ZKX is creating an incentive system (Swap Liquidity Mining in ERC-20) that allows DAO and projects to provide rewards for the trading of swaps within ZKX protocol 🧑‍⚖️ 14/26

This mechanism empowers the real ZKX users. Note that: 👉VGS decreases over time, so if you no longer participate, the VGS you own will decay 👉A control mechanism (High Tide algorithm) will be implemented to avoid bot actions (like wash trading) 13/26

Liquid Governance separates voting rights from token ownership by introducing the: 'Virtual Governance Share' (VGS), which rewards users' behaviors. I.E., the more actions a user performs on the platform, the more VGS he will accumulate 📥 12/26

1/ The first problem is DEX DAO which is only based on token ownership. This centralizes the power in the whale's and insiders' hands. However, these actors do not necessarily represent the real platform's users 🤨 To solve this, ZKX will use 'Liquid Governance.' 11/26

👉 Demand for decentralized and permissionless protocols will continue to grow ZKX fits all the boxes and offers many exciting features that address some of the current DEX problems. Let's take a look at the main ones! 👇 10/26

2⃣The derivatives rise mainly benefits CEX, however, DEX will take more and more market share as: 👉Infrastructure and UX are improving 👉New blockchains & L2 are offering lower fees and faster transactions than before 👉More and more innovative products are developing 9/26

Derivatives are very popular because they allow the creation of multiple strategies, including: 👉Hedging 👉Leveraging 👉Delta neutral position Perpetual swaps are even more appreciated because they allow greater flexibility than other classical derivatives 8/26

Thus ZKX is a derivatives protocol based on perpetual swaps. To build its protocol, ZKX starts from two assumptions: 1⃣In traditional markets, the derivatives volume is much higher than spot. The same is true in crypto, and the derivatives volume will only increase 📈 7/26