Zeta and Serum are aligned in their vision to bring new products to DeFi on Solana. We believe that this is a great step forward for DeFi derivatives on Solana, as we reduce parallel development in the ecosystem and provide a community-oriented, ‘CeFi-like’ experience on Solana.
Zeta will utilize Serum to match orders for its derivative contracts, building on top of Serum’s new permissioned markets functionality to create the required logic for DeFi derivatives.
What does this mean for Traders?
Trading DeFi options and futures on Zeta will provide users with more flexibility for order placement, and create new ways for counterparties to collateralize options.
Zeta’s integration of Serum contains functionality that pairs a margin account on the Zeta platform with multiple underlying Serum markets for call options, put options, and futures, enabling leveraged trading and powering on-chain liquidations to enable a safe undercollateralized experience.
Importantly, trading options on Zeta will feel like trading on most other centralized exchanges.
In the future, they will explore migration to Serum Core (Serum’s new asset agnostic orderbook) to take advantage of added flexibility on the fee structure and protocol design. Zeta is excited to kick off hosting a suite of cryptocurrency derivatives products on Serum, with plans in the future to list long-tailed underlying, exotic derivatives, and DeFi native yield products.
About Zeta Markets
Zeta’s vision is to create a fast, liquid, decentralized exchange for futures and options. When the idea for Zeta was coming to fruition — they realized that the base layer for complex derivatives like options needs to be high-speed, high-throughput, and fully decentralized.
Zeta’s thesis is that true price discovery, and deep liquidity occurs via order books in the long run, and Serum has enabled a unique primitive built by Zeta — A hybrid OMM-order book approach, which will define the DeFi option trading for years to come.
About Project Serum
Serum is a protocol and ecosystem that brings unprecedented speed and low transaction costs to decentralized finance. It is built on Solana and is completely permissionless. Ecosystem partners can compose with Serum’s on-chain central limit order book to share liquidity and power markets-based features for institutional and retail users.