Serum Adds Order Book Traded Derivatives to Solana With Zeta Integration

Project Serum integrates with Zeta Markets allowing the latter to utilize the DEX's order book design for completely decentralized vanilla options.

By
Anirudh Tiwari
on
October 15, 2021
Category:
Breaking News

Permissioned Market Derivatives Now on Solana 

Project Serum has now integrated with Zeta Markets on Oct. 12 to allow Zeta to utilize Serum’s order book to provide on-chain completely decentralized options on the Solana blockchain.

Zeta will build on Serum’s new permissioned markets functionality to formulate the required logic for DeFi derivatives. The use of DeFi options and futures on Zeta gives users the flexibility for order placement and innovates new ways for counterparties to collateralize options. The aim is to make users feel like they are trading through a centralized exchange.

“Zeta’s integration of Serum contains functionality that pairs a margin account on the Zeta platform with multiple underlying Serum markets for call options, put options and futures, enabling leveraged trading and powering on-chain liquidations to enable a safe undercollateralized experience,” as mentioned by Project Serum on their official Medium blog announcing the integration.
Source: Project Serum Medium

Zeta will also explore the migration to Serum Core, an asset agnostic order book, in the future to leverage the added flexibility of the fee structure and protocol design. The protocol uses a hybrid Options Market Maker (OMM) model that shows 2-way Black-Scholes price quotes on every strike and expiry while also allowing participants to post limit orders, which are eventually aggregated into a central order book. The Black-Scholes model is used to price options contracts and other derivatives products.


About Zeta Markets

Zeta Markets is the world’s first undercollateralized trading platform in the DeFi ecosystem that aims to provide a bulletproof decentralized options platform that allows users to hedge, speculate, and trade options on limitless market movement opportunities. The platform is the Grand Prize Winner of the Solana Season Hackathon.

Find about more Zeta Markets here:

Website | Twitter | Medium | Discord | Instagram | Whitepaper |

Tags:
Anirudh Tiwari

Anirudh is a cryptocurrency analyst and writer who specializes in derivatives, DeFi, regulations and CBDCs. He has a Master’s degree in Finance. Before delving into crypto, he worked with a leading U.S. based investment bank. Apart from work, he is a music connoisseur and likes to play the drums.