- Zeta announces its $8.5M funding round
- The funding round is led by JumpCapital and other investors
- Zeta aims to bridge CeFi and DeFi
Zeta is an innovative Decentralized Exchange (DEX) built on the Solana blockchain. Zeta tweeted that they are pleased to announce the $8.5M Funding Round that is led by Jump Capital. The other investors include Race Capital, Electric Capital, Amber Group, Wintermute, Sino Global Capital, DACM, Airtree Ventures, Genesis Block Ventures, Solana Capital, MGNR, 3kVC, Orthogonal Trading, QCP Capital, Alameda Research, LedgerPrime, and SkyVision Capital.
According to Zeta’s blog post, Anatoly Yakovenko, the President of the Solana Foundation says:
Building a Nasdaq natively on the blockchain is something I always wanted to see happen on Solana. Zeta, winners of the Solana hackathon, are making this a reality for both options & futures and pushing the limits of what’s possible on-chain
Zeta was started by a group of friends. It was a DeFi project being developed to compete in the Solana Season hackathon. Zeta aims to be the critical layer of the DeFi infrastructure to bring the capabilities of CeFi to DeFi. Some of the features in this plan for connecting the two systems are auto-strike generation, under collateralized trading, order book liquidity, two-sided trading, cross-margining, real-time liquidations, and instant settlement. Of these, collateralization is a key point.
Zeta’s Under-Collateralization And Margins
Slow blockchains take time to assess the underlying asset price. It is after this time lag that the blockchain responds to keep the protocol collateralized. Zeta uses a margin system that tackles this over-collateralization. Zeta’s margin enables users to better apply leverage through under-collateralization. To apply this margin, Zeta takes the best advantage of Solana’s 400ms block time and low fees. As this time is quick, the prices and positions are refreshed multiple times per second. This time advantage enables under collateralization and gives Zeta an advantage over other exchanges. Zeta also uses an internal engine to generate the Mark Price of all tradable assets. It recently open sourced its SDK.
Zeta’s Future Plans
Zeta revealed that the fundraise will enable much anticipated speeding up of planned developments and growth of the platform. It will also enable Zeta to set up grants for project integrations and make more strategic partnerships. Zeta is also hiring as part of its growth plan to create elements in DeFi that are similar to CeFi. Learn more about Zeta here.