Zaros Docs
  • 🏠Getting Started
    • What is Zaros?
    • Tree Proxy Pattern
    • Protocol Architecture
      • Zaros Core
      • USDz - Zaros' Ecosystem Stablecoin
      • Perps Engine
      • Market Making Engine
    • Roadmap
  • đź“šProducts
    • Perpetuals DEX
      • Introduction
      • Oracles and Keepers
      • Chains
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      • Social Login and One-Click Transactions
      • Collaterals
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    • Earn (Re)Staking dApp
      • Introduction
      • Boosted (Re)Staking Vaults
      • Integrations
  • ▶️Using Zaros
    • First Steps
      • Connecting your wallet in Zaros dapp
      • How to mint USDC & Create a Trading Account
        • Where to get Faucet
        • How to mint USDC
        • How to Create a Trading Account
    • For Traders
      • Profit and Loss (PNL)
      • Collateral/Leverage management
      • How to open & close a position?
        • Order Entry & Margin Overview
        • Market Buy/Long | Limit Sell/Short (Opening a position)
        • Take Profit/Stop Loss Triggers (Closing a position)
      • Margin & Leverage
      • Trading Data
        • Market Data
        • TradingView
        • Trading Activity Panel
        • Order entry & Margin Overview
    • For Liquidity Providers (LPs)
      • How to stake
      • How to unstake
  • 🪙ZRS Token
    • Introduction to $ZRS
    • Tokenomics
      • $ZRS Supply & Emissions
      • LBP System
    • Phase 1 ZRS/ETH Incentives
    • veZRS
      • What is veZRS?
      • The ve80/20 System
    • Governance
      • Zaros DAO
      • gZRS
  • 🔵zPoints
    • Introduction
    • Trading League Competition
  • ⛲Resources
    • Glossary
    • FAQ
    • Audits
    • Community & More Informations
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On this page
  • Overview of Zaros Market Making Engine
  • Benefits to Liquidity Providers (LPs)
  • USDz Backing
  • Rewards
  1. Getting Started
  2. Protocol Architecture

Market Making Engine

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Last updated 11 months ago

Overview of Zaros Market Making Engine

Benefits to Liquidity Providers (LPs)

LPs play a crucial role on Zaros by providing credit to its markets. In exchange for their contribution, LPs earn a sizeable portion of trading fees from Zaros’ perpetual futures markets. Certain Vaults may also reward LPs with zPoints, enhancing the benefits of participation.

USDz Backing

USDz is paid out to profitable positions, and is accounted as debt by the CreditBranch. Traders can swap USDz to any of the ZLP Vaults underlying collateral at any point in time, using Chainlink's Data Streams prices for settlement. This ensures traders can have a smooth experience on Zaros while the system remain collateral agnostic, enabling the DAO to smoothly spin up new ZLP Vaults.

Rewards

LPs allocate their collateral to specific ZLP Vaults designed for efficiency in asset management, supporting a variety of purposes. By depositing Liquid Staking Tokens (LSTs) and Liquid Restaked Tokens (LRTs) into ZLP Vaults, LPs can earn up to 70% of trading fees generated, linking their success directly to the platform’s performance.

This innovative framework not only incentivizes liquidity providers but also establishes a stable and scalable trading landscape for perpetual futures on Zaros, fostering a mutually beneficial ecosystem for traders and LPs alike.

Zaros unveils an innovative Market Making Engine utilizing the , which consists of Leaves, Branches, and a Root for its structure. This engine is supported by a modular architecture, including critical components such as FeeBranch.sol, CreditBranch.sol, CollateralBranch.sol, and ZLPBranch.sol. This setup lays the groundwork for a sturdy and flexible ecosystem.

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