In the traditional financial field, the market value of derivatives accounts for most of the market value.
According to estimates, as of 2021, the total market value of derivatives has exceeded 12 trillion US dollars. In the cryptocurrency market, derivatives have also experienced a similar growth trend. This anticipation was fulfilled when BitMEX launched perpetual contracts in 2016, and they quickly became one of the most active instruments in cryptocurrency trading.
But as far as the current situation is concerned, centralized exchanges still occupy a dominant position in this field. However, in the context of the rapid development of DeFi, the decentralized perpetual contract market undoubtedly has great potential, and may even form a market that is more than mainstream A bigger market.
However, the current on-chain assets are still dominated by long-tail assets. Therefore, how to design a contract product to meet the needs of users of long-tail assets is the key to whether decentralized perpetual contracts can emerge.
In this case, the third generation of decentralized perpetual contract - hybrid perpetual contract came into being in ZERONE.
Zerone: Decentralized Hybrid Contract Exchange
Before introducing Zerone, let's first understand what is a hybrid perpetual contract.
Hybrid perpetual contract is a new type of contract derivative, which is convenient for investors to use any currency they hold as margin (settlement currency) to trade other currencies. That is to say, one currency is used to trade across currencies and settle contracts of other currencies.
As a decentralized mixed contract exchange, Zerone is an agreement that hopes to solve all the token contract transactions of Crypto with the help of the concept of decentralization. It has a very high degree of friendliness and composability for ecological project parties.
The development positioning of ZERONE is "one currency in hand, all transactions are owned", it adopts a minimalist design concept, relies on blockchain technology, smart contracts, oracle quotations and other modules to realize purely decentralized transaction services and open up Mutual conversion and investment among various assets such as virtual currency, legal currency, bulk commodity, stock and stock index, physical assets, etc., help users to free themselves from inefficient transactions and high costs, and maximize the liquidity of various isolated assets .
The core functions of the Zerone platform are very rich, mainly including:
Trade the most popular hybrid contract product in the crypto world in a KYC-free way.
Build new protocols and projects on top of the Zerone hybrid contract protocol.
3. Market making
Earn income by becoming a liquidity provider.
The first product launched by Zerone is a decentralized hybrid perpetual contract. Users can use any asset they hold as a trading chip, and conduct all asset transactions with reference to the quotation of the decentralized oracle machine. The counterparty is the asset corresponding to the asset held by the user. asset pool. The protocol has established a virtual currency trading market, a legal currency trading market, a commodity trading market, a precious metal trading market, a stock/stock index trading market, a physical asset trading market, etc., to meet the different investment and trading needs of users.
Zerone's team is ZERONE LABs, which has been committed to researching the field of decentralized finance, and is making continuous efforts to create a decentralized world.
ZERONE LABs is led by Professor Flehm, a well-known domestic university, as the chief scientist. Professor Flehm graduated from Tsinghua University, holds a doctorate in engineering, a postdoctoral fellow, and a doctoral supervisor. The main research directions are blockchain architecture, digital certificate and distributed storage. Professor Flehm is currently in charge of building a key laboratory in the direction of blockchain finance and research on smart contracts for financial products on the chain.
Lorne, a member of ZERONE LABs, is a senior algorithm expert and is rated as an S-level open source on Github. Lorne has been paying attention to and researching artificial intelligence, blockchain, and cloud computing related technologies. In the early days of cryptocurrency, he developed a Java-based Bitcoin simulation network, using deep neural networks to simulate the economic principles of Bitcoin; Lorne has a deep understanding of software architecture design, and open sourced the springboot-framework framework based on domain-driven models.
Dr. Gonzalo, a member of ZERONE LABs, is a senior blockchain architecture expert and graduated from Peking University and the Chinese University of Hong Kong. Dr. Gonzalo once founded a company in Boston, USA, and is the earliest Linux server expert in the world. Dr. Gonzalo is currently engaged in modular blockchain technology, with the aim of providing a customizable vertical public chain for on-chain financial derivatives.
ZERONE LABs member Heichen, the Murmes project developed by Heichen is a blockchain-based tokenized subtitle crowdsourcing protocol, which is dedicated to solving the "language island" problem existing in current video media platforms. Murmes has become a crowdsourcing protocol with customizable and compatible multi-ecological features, and is no longer only oriented to the field of translation crowdsourcing.
Co-Founder (COO) JIAHE DAI graduated from Wuhan University with a bachelor's degree in theoretical physics. Before joining ZERONE, JIAHE DAI had more than five years of experience in investment banking and blockchain. He once worked in a cryptocurrency fund company and was responsible for the strategy and operation of several invested projects. He is currently a member of Builderdao OG, a web3 project and technical talent incubation Dao organization.
Co-Founder Joleen Mi graduated from Western University in Canada with a PhD in Geophysics. As a visiting scholar, he went to the University of California, Berkeley (Berkely) for further study. After returning to China, he worked as a postdoctoral fellow at Peking University and joined the Institute of Chinese Academy of Sciences. Her research topics focus on physics and advanced technology, and she has unique insights into artificial intelligence and Crypto financial derivatives.
1. Advantages of ZERONE decentralized trading protocol
1) Beyond borders
Directly trade various assets on the chain, including encrypted assets and traditional assets.
2) Eliminate slippage
No scientist arbitrage and zero slippage trading experience.
3) Privacy Protection
No need to register, just connect the wallet to trade.
4) Enhanced security
Direct transactions with more autonomy in a decentralized environment.
2. Advantages of ZERONE Hybrid Perpetual Contract
1) Reduce exchange risks and costs
The mixed contract adopts multi-currency settlement, which saves the intermediate exchange link, reduces the risk rate, and reduces the handling fee expenditure.
2) You can make money by hoarding coins
After the hybrid contract implements multi-currency settlement, for users who are optimistic about the currency for a long time and want to invest in mainstream currency contracts, they can realize the purpose of hoarding coins to make money.
3) With one coin in hand, the exchange has all
The hybrid contract supports any digital asset as margin. Whether you hold DOGE, MASK, SHIB, SOL, DODO or USDT, you can use it as margin to participate in mainstream currency contract transactions.
3. Advantages of ZERONE contract design
1) Zero slippage trading mechanism
Slippage is defined as the difference between the expected price of a trade and the price at which the trade is executed. The zero-slippage mechanism makes ultra-high leverage feasible on the perpetual contract platform with low liquidity. Another advantage is that even if the TPS on the chain is not high, users can get a real-time experience based on the depth of the centralized exchange, avoiding unnecessary losses caused by slippage.
2) High capital efficiency
The use of leverage enables Zerone to have an extremely high capital utilization rate, which means higher returns for LPs.
3) Thoroughly solve the risk of multi-token exposure in the LP pool
Zerone's LP can obtain real-time transaction records and adopt external hedging strategies to solve the risk of multi-token exposure.
4) Single-currency automatic market-making mechanism
Similar to the AMM mechanism, the community only needs to charge tokens into the liquidity pool to earn transaction fees.
Product Model and Architecture
Take the contract transaction where the investment target is BTC/USD, and the investor holds various virtual currencies as an example:
1. Users who hold ETH take BTC/USD quotes from the oracle machine as the investment target, and issue a buy/sell application. The system checks the amount of ETH held by the user and the amount of ETH in the asset pool, and the transaction is automatically executed under the risk control conditions. The transaction can only be initiated by the user, and the asset pool is passively accepted as the counterparty.
2. The user earns the transaction price difference, which is the increase/decrease rate of the investment target in the oracle system. For example, the user buys 1,000 ETH when the BTC/USD is 30,000 US dollars, and sells it when the BTC/USD rises to 33,000 US dollars. If 1,000 ETH is issued, the user earns 100 ETH, that is, 1,000*(33,000-30,000)/30,000=1,000*10%=100.
3. Users who hold ETH apply to the asset pool for mining to provide liquidity. After the system checks the amount of ETH assets held by the miner, the requested amount of ETH will be remitted to the asset pool account.
4. After the user initiates the order transaction, he needs to pay a transaction fee of 0.1% ETH, and the transaction fee will be remitted to the ETH fee pool.
The name of the ZERONE platform governance currency is ZRO, and the number of issuance is 1 billion. The Token adopts an infinite deflation mechanism. The specific distribution ratio of ZRO is as follows:
1. The project community is 450 million (accounting for 45%)
2. The foundation allocates 550 million (accounting for 55%)
3. The team reward is 75 million (accounting for 7.5%), which is used for team operation, technology research and development, etc., and the mixed contract mainnet will be unlocked in 8 quarters 12 months after the launch of the main network. Among them, 10% will be unlocked each quarter in the first 7 quarters. 30% unlocked in the last quarter.
Among them, the early investor share of the project is 175 million (accounting for 17.5%), which provides sufficient funds and resources for the development of the project. The hybrid contract mainnet will release 10%, and then release 15% every two months, and all will be released within one year.
As a decentralized hybrid contract exchange, Zerone adopts a minimalist design concept, relying on blockchain technology, smart contracts, oracle quotes and other modules to achieve a purely decentralized transaction service. In the future, with the continuous development of the cryptocurrency market and financial derivatives, Zerone is expected to become an important trading platform, providing users with more diversified trading and investment methods.
In addition, the professional background and experience of the Zerone team will also become a strong support for its future development, making Zerone more innovative and competitive.