Zaros, a perpetual decentralized exchange (DEX), has become the first EVM-compatible perpetual DEX to join the Cointelegraph Accelerator program. This platform enables traders to engage in perpetual futures trading while allowing liquidity providers to earn extra yield by offering liquid staking tokens (LSTs) and liquid restaking tokens (LRTs) as liquidity.

Traders in the decentralized finance (DeFi) space often encounter numerous challenges. Liquidity is frequently dispersed across multiple platforms, making it difficult to find optimal prices and trading pairs. The user interfaces of many DeFi platforms can be overly complex, deterring new users and complicating the trading process.

Slow settlement times can lead to missed trading opportunities, and high slippage can result in trades executing at unfavorable prices, reducing profits. Additionally, managing assets across different blockchains creates a fragmented and confusing trading environment.

Addressing Liquidity and User Experience in DeFi

To tackle liquidity fragmentation, Zaros aims to provide deep liquidity across various markets, including cryptocurrencies, commodities, and forex. Its eClusters system and Smart Funding Algorithm group assets with similar risk parameters, enabling efficient and rapid liquidity allocation to new markets.

Zaros enhances user experience by employing account abstraction, which hides blockchain technicalities during interactions. The platform also supports social login and one-click trading to improve accessibility and ease of use.

For high-frequency trading and interoperability, Zaros utilizes Chainlink’s Data Streams to ensure faster order execution, better settlement prices, and protection against front-running. This setup also allows traders to deposit a wide range of assets as collateral from Arbitrum and Monad, facilitating a seamless cross-margin trading experience.

Mitigating Risks and Boosting Yields for DeFi Liquidity Providers

In addition to enhancing the trading experience, Zaros addresses the challenges faced by liquidity providers (LPs) in DeFi, who often deal with limited staking yields and the risks associated with complex yield-boosting strategies. LPs also face the risk of liquidation during market downturns.

Zaros offers solutions to these challenges by allocating 70% of trading fees to LP vaults in Ether (ETH), allowing LPs to earn a share of the protocol’s trading fees in addition to Ethereum’s staking yield. The protocol uses USDz, an overcollateralized stablecoin backed by LST vaults, and an eClusters system inspired by Aave’s eMode to efficiently distribute credit while remaining delta-neutral.

Zaros Liquidity Providing Vaults (ZLP Vaults) represent each LP’s stake in the protocol’s liquidity, pegged to the underlying assets of the vault, such as wstETH and weETH. This maintains DeFi composability while unlocking an additional yield layer.

Zaros’ Roadmap for 2024

Zaros aims to significantly increase the penetration of decentralized derivatives into centralized finance (CeFi) and traditional finance (TradFi) audiences over the next five years. This vision can be realized by focusing on user experience, education, and delivering value with safety and credibility, ultimately fostering greater adoption and integration of DeFi in mainstream financial markets.