BACKGROUND

ZETA MARKETS

Zeta Markets was launched in Zeta Markets is an innovative decentralized derivatives trading platform launched in early 2022 on the Solana blockchain. It's a non-custodial platform, that offers users the opportunity to trade liquid derivatives without having to provide collateral, making it accessible to both individuals and institutions. With its decentralized exchange, users can place fast orders and speculate on the future price movements of various crypto assets. Powered by Solana's fast and censorship-resistant infrastructure, Zeta Markets enables fast trades and position settlements at low gas costs, making it an exciting addition to the DeFi derivatives space.

DRIFT MARKETS

Drift Protocol is the fastest growing DEX on Solana at the moment. The exchange is a decentralized perpetual swap exchange that introduces an innovative apporoach called a 'Dynamic Automated Market Maker (DAMM)' to provide a smooth and low-slippage trading experience for its users. Drift's DAMM is based on a virtual AMM, but it introduces repegging and adjustable k mechanisms to recalibrate liquidity in a trading pool based on participant demand. This allows for better capital efficiency and reduced slippage compared to traditional vAMMs and AMMs. Drift's goal is to make DEXs the best way to trade, bringing a state-of-the-art trader-centric experience from centralized exchanges on-chain. Drift's first version will be built on Solana, providing a low-latency block time and high bandwidth to enable quick settlement with the lowest transaction fees possible.

DEFINITIONS

DeFi: - Decentralized Finance is an emergent field of finance enabled by blockchain technology that allows users to trade assets without intervation of intermediaries .
DEX: - A Decentralized Exchage (DEX) is a key DeFi infrastructure that acts as a peer to peer exchange that facilitates users to trade crypto assets with each other.
DERIVATIVES: - In DeFi, derivatives are financial contracts that derive their value from an underlying asset or set of assets. This allows DeFi users to trade and speculate on a range of assets without owning them directly just like in the traditional finance world. DeFi derivatives can include perpetuals, options, futures, swaps, and other complex financial instruments, and can be traded on decentralized exchanges (DEXs) without the need for intermediaries or trusted third parties..
PERPETUALS: - Crypto perpetuals are derivative contracts that enable traders to speculate on the future price of an asset without having to physically own it.

THE NEW AGE OF SOLANA DEFI