ZKX’s Release of Polaris V2: A Decentralized Derivative Trading Protocol on Starknet

On April 25th, ZKX, a decentralized derivative trading protocol based on Starknet, announced the release of a new version of the testing network Polaris, which includes a market making robot to accelerate order execution and a fund rate function to maintain platform stability.

Starknet Ecological Derivatives Protocol ZKX New Test Network Polaris

Introduction

On April 25th, ZKX unveiled the latest version of its testing network Polaris that offers more comprehensive features and upgrades. The new release includes a market making robot, an algorithmic tool to speed up order execution and a fund rate function, ensuring a stable platform.

Background

Decentralized Finance (DeFi) has been taking the finance world by storm, providing a decentralized platform for traders worldwide. One of the most significant market segments of DeFi is the derivative market, with the derivative protocol ZKX offering an innovative solution for decentralized derivatives trading.

Polaris V2: Key Features

The latest release of Polaris V2 includes two primary functions, the market-making robot, and fund rate function. These features are designed to improve platform stability and accelerate order execution, making it easier for users to participate in high-frequency trading.

Market-making Robot

Market-making is a trading strategy that involves providing liquidity to the market by buying and selling assets continuously. ZKX’s Market-making Robot 2.0 helps maintain market efficiency and improves liquidity, leading to lower bid-ask spreads and better prices for users. The robot utilizes an algorithmic strategy to provide round-the-clock liquidity while mitigating risk by adjusting prices to reduce exposure to market volatility.

Fund Rate Function

The fund rate function is designed to handle platform stability by adjusting the fund rate according to the market situation. The fund rate is a mechanism that calculates interest, funding traders on margin, ensuring there’s enough liquidity flow between long and short position traders. The fund rate function in Polaris v2 ensures platform stability by actively adjusting this interest rate, based on the market situation, promoting balance between buyers and sellers in the derivative’s market.

Benefits of Polaris v2

Polaris V2 offers substantial benefits to both experienced and novice traders looking for a transparent, efficient, and secure derivative trading platform. Here are some of the benefits of Polaris v2:

Transparency

Polaris V2 provides complete transparency about its trade and liquidity providing activities, making it easy for traders to track investment returns.

Efficiency

The market-making robot’s algorithmic feature enables high-frequency trading, ensuring efficient market liquidity for traders.

Security

Polaris V2 operates on the highly advanced and secure Starknet network, ensuring next-level security for sensitive user data and funds.

Accessibility

Polaris V2 is easily accessible with low network fees, enabling traders worldwide to participate in derivative trading with minimal capital requirements.

Conclusion

The release of Polaris V2 by ZKX is a significant milestone for the world of decentralized finance, providing traders worldwide with exceptional benefits, including efficiency, transparency, security, and accessibility. With the new market-making robot and fund rate function, traders can participate in high-frequency trading with ease, ensuring a stable platform even in volatile market conditions.

FAQs

1. What is decentralized finance, and how does it differ from traditional finance?
Decentralized finance refers to a system of finance that operates on a decentralized blockchain platform, eliminating the need for intermediaries, while traditional finance relies on intermediaries like banks. Decentralized finance is transparent, accessible, and secure, while traditional finance is often centralized, opaque, and has a higher risk of fraud.
2. How does the market-making robot work in Polaris V2?
The Market-making Robot in Polaris V2 is an algorithmic tool that provides liquidity to the market by continuously buying and selling assets. The robot adjusts prices to mitigate risk and reduce exposure to market volatility, leading to lower bid-ask spreads and improved liquidity.
3. What makes Polaris V2 a secure platform for derivative trading?
Polaris V2 operates on the highly advanced and secure Starknet network, ensuring top-level security for sensitive user data and funds. The platform provides complete transparency about its trade and liquidity providing activities, ensuring traders can track investment returns with ease.