Hi All, wanted to outline a proposal for an incentive campaign that will be managed by the Zeta Markets team. Excited for this and looking forward to community consideration and feedback.
Quick overview: Zeta Markets is a protocol built on Solana that provides a suite of services for derivatives trading. Its core product offering is the Zeta DEX, which leverages Serum to provide an under collateralised trading platform for European style cash-settled options and dated futures. The dex went live in January this year and has traded around $100m in notional volume since inception, predominantly from its options.
This grant aims to reinvent DeFi structured products via Serum. Current implementations of structured products in DeFi encourage users to adopt passive trading behaviours and offer little flexibility on how they wish to express their view. It stands to reason that better outcomes can be achieved for end users by offering more flexibility, and by empowering them with the ability to take both sides of options trades.
The Zeta DEX allows anyone to compose with it via its open source sdk’s (rust and ts), allowing them to build products, with fixed term derivatives that settle on Zeta’s Serum based exchange. The aim of this grant would be to grow volumes for Serum by incentivising the end users of projects that integrate with the Zeta DEX. Zeta provides the tools and resources needed for projects to offer structured products that settle on the one venue.
For the purposes of this grant, it should not be used for incentivising general trading activity on the Zeta DEX. Only trades placed through whitelisted projects that compose with the Zeta DEX should be eligible.
Eligible users would be defined as takers on approved third party applications that interact with the Zeta DEX, either on chain or via the sdk. Accounts that satisfy a number of checks for wash trading prevention would be rewarded based on their trade volume and open interest for the reward period.
Supported Assets: Any option market underlying listed on the Zeta DEX.
Lockup: SRM rewards would be locked for a period of time before being released to the user.
The ask would be for 4M $SRM to support a boost to the PnL of products built on the Zeta DEX for a period of around 36 weeks.
As a close partner of Serum, Zeta is well positioned to create long term value for SRM token holders by increasing volume and fees for Serum. Looking forward to hear community thoughts on this one.
Akira from Lift here.
Lift is looking to build a vending machine of strategies for users to click into so they can easily put on strategies which align with their market outlook without the complexity.
As its first product lift launched a yield strategy: https://lift.markets/yield-generator-usdc
This allows users to create a yield strategy according to custom parameters, this strategy is build on top of Zeta Markets, and we believe this is a step change improvement on traditional DOVs - providing users with customisation, clear risk explanation and flexibility.
An incentive program like the above will help us prioritise building more strategies that leverage Zeta - things like hedging products/insurance, bets, and principal protected strategies are all things that are currently under exploration and can be made possible by Zeta Dex.
We support this proposal as something that can help push innovation and bring to users an entirely new set of products and utility that were not possible before.
Filip from Solrise/Solflare here.
Solrise Finance is a decentralized asset management platform where everyone can create a fund, or invest in someone else’s fund.
We’ve seen that incentive schemes like this have proven to be really powerful for acquiring users. During our last incentivized trading competition that lasted for 4 weeks, we’ve made over 100M in volume on Serum.
We are in favor of Zeta’s proposals because it would give us the certainty to prioritize building on top of Zeta as we would be able to incentivize fund managers to at least try it out during this bear market.
Let’s keep Solana DeFi alive and well in the coming months
Hey there! Jeremy from Snowflake here.
Snowflake is an automation and multisig platform for Solana. We are aiming to build the app store for treasuries to manage their assets and earn yields and invest into other Solana protocols: https://safe.snowflake.so
An incentive program like the above will help us to prioritise integrating Zeta into our platform. Since launching a few weeks ago, we’ve had a high volume of Safes created. A lot of users and teams have been asking for third party protocols to invest their funds into directly from Snowflake Safe. The incentive program which Adrian discusses strongly encourages us to integrate and build custom investment strategies for users (allow users defined dates on when they want to invest and settle their options) on top of Snowflake Safe.
We strongly support this proposal, as it’ll help provide new integrations from Snowflake’s secure multisig, giving treasuries and users investment options that don’t currently exist on Solana.