👀New $SOL Project Shakes up a Trillion $ Market!👀


Hey Everyone, Jake here giving you the first-mover information!

Derivatives markets are over a $15 trillion dollar market and this project is shaking them up! 

Decentralizing a tool as strong as options and leverage trading gives a huge advantage to everyday traders.

Especially if these tools are built on a network as fast as Solana ($SOL). 

I want to give you a heads up over the rest of the market by making you aware of a project you’ve never even heard of. 

It’s backed by some of the biggest investors in the digital assets space such as Jump Capital and Genesis Block. This project is sure to make waves across the entire digital asset community and shake up the multi-trillion-dollar derivatives market!

Zeta Markets

Zeta Market is bringing the benefits of decentralized finance to the derivatives markets. 

Some of these benefits include, but are not limited to, open-source coding, permissionless use, and allowing you to earn yield by being a market maker yourself! 

This is a 24/7 market with constant access to trading. So, on days like Martin Luther King Day, this market is still up and running! 

The mission of Zeta Market is simple. “Provide DeFi derivatives to enable anyone to hedge, speculate, and take opinions on a limitless variety of market movements.”

On their decentralized application, users can interact with the digital asset market in a high speed and low-cost manner. All while giving users a familiar order book and trading experience. 

 

Be Your Own Market Maker

One of the unique features DeFi and ZETA brings to traditional trading is the ability for everyday investors to be market makers. 

Meaning that your assets can provide liquidity for other individuals to trade on. This is what we call Liquidity Pools. By participating in a liquidity pool you can earn a yield on your assets as other potential investors utilize these funds to trade.

This is one of the most common ways of earning yield in this space is by participating in these liquidity pools. There are of course inherent risks associated with this practice.

The biggest factor being impairment loss. This essentially means that if you’re providing liquidity to the pool and the token ratio doesn’t stay the same some funds can be lost. 

An easy example of this is .07 $BTC equals 1 $ETH. If this ratio changes the amount of tokens you have in relation to the new ratio will change as well.

 

My True Feelings on Leverage Trading Digital Assets

Plainly put, are digital assets not volatile enough? You don’t need leverage trading, it’s just an additional risk that often comes with the loss of funds or no reward.

Leverage trading is adding more risk to an already highly volatile market. The vast majority of individuals that take up leverage trading are not going to be successful at it.

This tool is used against traders constantly in the digital asset space. It’s so much easier for large exchanges to move markets than everyday investors and traders think. Especially in the digital asset space. 

These large fast swings in price action that we see like below are caused almost entirely by leverage trading. 

Here is a great example of leverage trading moving markets.


This is one of my favorite assets: $XRP falling 32% in 4 hours. This drastic downwards move is what’s known as a “cascading liquidation”. It’s a dramatic move that hits the majority of traders stop losses and liquidations.

These markets will move a lot higher and a lot lower much faster than anyone thinks. So please, plan accordingly.

 

Bottom Line

Decentralized finance is a more lucrative, transparent, and efficient way of trading than through traditional methods. Especially since these applications give you access to the digital asset space that runs all day, every day.

With projects like Zeta building on top of Solana, derivative markets are in for a huge boost in the near future. Allowing anyone to create calls, puts, and access leverage trading in an open-source and permissionless way. 

While these traditional finance tools may seem lucrative, it may be best to leave them where they come from, in the past.

 






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