Table of Contents

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

| Heading |
| — |
| Introduction |
| What is ZKX? |
| What is Starknet? |
| What is a Decentralized Derivative Trading Protocol? |
| What is Polaris? |
| Market Making Robot for Order Execution |
| Fund Rate Function for Platform Stability |
| Conclusion |
| FAQs |
# On April 25th, ZKX Announces Release of New Version of Polaris Testing Network

Introduction

ZKX, a decentralized derivative trading protocol based on Starknet, announced the release of a new version of the testing network Polaris on April 25th, 2021. This new version includes a market making robot to accelerate order execution and a fund rate function to maintain platform stability. This article will explore the significance of these additions and provide an overview of ZKX, Starknet, decentralized derivative trading protocols, and Polaris.

What is ZKX?

ZKX is a decentralized exchange that aims to provide a platform for high-speed, non-custodial trading of financial derivatives. It was founded by a team of engineers and developers from top-tier tech companies such as Google and Microsoft, who sought to address the inefficiencies and inadequacies of current derivatives trading platforms. ZKX’s unique selling point is its use of zero-knowledge proofs (ZKPs) to ensure privacy and confidentiality in transactions.

What is Starknet?

Starknet is a layer-2 scaling solution for Ethereum that focuses on enabling efficient and secure execution of complex computations. It achieves this by utilizing a new zero-knowledge proof system called STARKs (an acronym for Scalable Transparent ARgument of Knowledge). Starknet promises to lower gas fees, reduce latency, and improve the overall efficiency of Ethereum-based dApps.

What is a Decentralized Derivative Trading Protocol?

A decentralized derivative trading protocol is a financial platform that allows users to trade derivatives without the need for intermediaries. It is designed to provide a secure and private environment for traders to buy and sell financial instruments such as options, futures, and swaps. Unlike traditional centralized exchanges, decentralized derivative trading protocols are non-custodial, meaning traders retain control over their funds at all times.

What is Polaris?

Polaris is ZKX’s testing network that allows developers to test and experiment with the platform before it is launched to the public. Its purpose is to identify and fix any issues or bugs before they impact the user experience on the mainnet. The new version of Polaris includes two major additions to the platform, a market making robot and a fund rate function.

Market Making Robot for Order Execution

The market making robot is an automated system designed to improve order execution speed and fill rate. It achieves this by providing liquidity to the order book and continuously adjusting bid and ask prices. The robot’s main function is to support the exchange’s trading volume, minimize slippage, and improve price discovery.

Fund Rate Function for Platform Stability

The fund rate function is a mechanism that aims to stabilize platform fees by adjusting the interest rate earned by liquidity providers. Funds in Polaris are held in a pool, and traders pay fees to access the pool. The fund rate mechanism ensures that the platform remains profitable for liquidity providers in periods of high demand and balances fees in periods of low demand.

Conclusion

ZKX’s new version of Polaris is a significant step towards the platform’s mainnet launch. The addition of a market making robot and a fund rate function will not only improve order execution speed and liquidity but also ensure platform stability in the long term. ZKX’s commitment to building a decentralized, non-custodial derivatives trading platform that prioritizes privacy and user control is a promising development in the crypto space.

FAQs

1. How does ZKX ensure privacy in transactions?
ZKX uses zero-knowledge proofs (ZKPs) to ensure privacy and confidentiality in transactions. This means that sensitive information such as trade details and user identities are kept secure and private.
2. How does Polaris differ from the mainnet platform?
Polaris is a testing network designed to identify and fix issues before the mainnet launch. The mainnet platform will have more features and a higher trading volume.
3. What are STARKs?
STARKs (Scalable Transparent ARgument of Knowledge) are an advanced zero-knowledge proof system that allows for efficient and secure execution of complex computations on Ethereum-based dApps.