Zeta Markets, a decentralized finance (DeFi) futures and options exchange built on Solana, has announced that it finalized an $8.5M funding round that was led by Jump Capital.
The investment round, carried out via private token sale, had participation from Race Capital, Electric Capital, DACM, Airtree Ventures, Amber Group, Wintermute, Sino Global Capital, Genesis Block Ventures, QCP Capital, Alameda Research, Solana Capital, MGNR, 3kVC, Orthogonal Trading, LedgerPrime, and SkyVision Capital.
This raise comes off “the back of Zeta Market’s grand prize win in the Solana Summer hackathon which featured over 13,000 participants worldwide.”
The announcement also mentioned that Zeta Markets is a decentralized platform built on Solana that “facilitates liquid, non-custodial, and under-collateralized derivatives trading.”
Zeta utilizes Solana‘s censorship-resistant infrastructure to “provide users with pricing updates, liquidations, the ability to execute trades and settle positions sub-second while paying less than $0.01 in gas fees,” the update explained.
Zeta’s natively under-collateralized nature enables traders to “post a fraction of the full price of the future/option, while also performing cross-margining so that traders can account for all holdings whilst sharing profit and loss across all positions,” the announcement added.
The Platform also “guarantees liquid trading across all markets thanks to a best-in-class options market maker (OMM) which prices and quotes all options and futures on-chain and in real-time,” the update revealed.
Tristan Frizza, Core Contributor to Zeta Markets, stated:
“We’ve seen a Cambrian explosion in the Solana DeFi ecosystem since just the beginning of this year, with TVL accelerating over 100x to almost $15bn. The unparalleled performance of the underlying chain massively opens up the design space for innovative protocols. Zeta takes full advantage of this to bring the speed and deep liquidity of CeFi derivatives to DeFi, whilst remaining permissionless and fully composable.”
At launch, Zeta is expected to provide a suite of derivatives and will “launch with both options and futures for the popular cryptocurrencies.”
The Platform will also include a list of features “traditionally found on institutional-grade centralized exchanges including, but not limited to; undercollateralized trading, portfolio cross-margin, sub-second mark-to-market updates, instant settlement, as well as an orderbook and matching engine powered by Serum.”
The update further noted that the funds will be utilized to “accelerate the development and business growth of Zeta Markets, initiate community grants to encourage composable project integrations as well as onboard key strategic and market making partners.”
Chris McCann, Partner at Race Capital, commented:
“In June 2021, crypto derivative volume surpassed the spot market for the first time doing $3.2 trillion in volume compared to spot markets which did $2.7 trillion according to CryptoCompare. I believe derivatives will continue to be the main driving force for DeFi and derivatives will be an order of magnitude times higher in trading volume vs. their DEX counterparts. We’re super impressed with the entirety of Zeta’s core contributors backgrounds, passion and drive in the DeFi space, and I’m excited to help Zeta become #1 in the DeFi derivatives space.”
For more details on this update, check here.