Announcing Zeta FuZe

We’re very excited to announce that Zeta’s cross-program invocation library (CPI), FuZe, is live and ready for forking!

Why FuZe?

FuZe is the beginning of Zeta’s quest to provide a critical layer of DeFi infrastructure that benefits the entire ecosystem; FuZe allows anyone, anywhere, to fuse (i.e. integrate) with the Zeta DEX from their own Solana program.

We firmly believe that to unlock the power of DeFi, innovation needs to be set free through open-sourced code, allowing composability to come to the fore. Zeta has built a fast, robust, capital-efficient and scalable derivatives base layer — now the power is in your hands to engineer incredible financial products with these primitives at your disposal!

Benefits Of Building With FuZe

Composing on top of Zeta is a great way to contribute to the financial infrastructure of tomorrow. We’ve made it one of Zeta’s missions to assist the development of partner protocols and projects building via FuZe, and on top of Zeta in general. Partners will have Zeta’s full contributor efforts at their disposal:

  • Engineering and mechanism design / financial engineering assistance from core contributors.
  • Deep liquidity from the same shared underlying derivatives markets (powered by Serum orderbook infrastructure).
  • Incredibly strong network of liquidity providers already integrated into Zeta’s program, some of the best derivatives market makers in the business.
  • Feature as a protocol partner on Zeta’s landing page, as well as in marketing content Zeta puts out!
  • Possible token grants and developer bounties ahead.

So anon, are you ready to FuZe? Let’s take a quick look at what you can build!

How To Build With FuZe

At its core, FuZe contains all the relevant Zeta CPI instructions (init margin account, deposit/withdraw collateral, place/cancel orders) and Zeta account data layouts (options strikes, expiries, underlyings, greeks, prices, margin balances and positions) needed to interact with the Zeta DEX via any other Solana program — for a full list check out the Github Repo.

Along with this we provide a barebones wrapper program zeta-cpi that gives an example of how you can call the Zeta DEX program from your own program. In addition to this, we are currently working on useful sample implementations to guide best practices and make the barrier to entry as low as possible (think of it like the Solana Program Library for Zeta composability).

So what can you do with these tools? We have a ton of ideas of what one could build:

  • Structured products (Put selling, covered call selling, straddles etc.)
  • Decentralized asset managers (think Solrise or Investin)
  • Hedging risk on other projects (e.g. your longs on Mango, your IL on a yield farm)
  • Basis trade to earn yield on Zeta’s Futures Platform

Here is a simple product flow for a vault framework that includes market maker uptake:

Example: Put Selling Vault

  1. Users deposit USDC into a vault, receive token representing % ownership of the vault.
  2. Vault program selects appropriate instrument (e.g. the deep OTM 5-delta strike put) and calculates # options to sell as n = vault_balance / strike_price.
  3. At a predetermined time every week, the vault holds a short auction window in which it sells all n put options at a given price (negotiated with MMs ahead of time, we can help out here). The price determines the amount of premium earned.
  4. Users may redeem their ownership tokens for their share of USDC in the pool once the lock-up cycle has ended. If the put options remained unexercised (i.e. if they finished out of the money), all users will be in profit from accumulated premiums. If stakes are not redeemed, they can be rolled into the next vault cycle.

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Zeta (ζ) is the premier under-collateralized DeFi derivatives exchange, providing liquid derivatives trading to individuals and institutions alike.

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Zeta ζ

Zeta ζ

Zeta (ζ) is the premier under-collateralized DeFi derivatives exchange, providing liquid derivatives trading to individuals and institutions alike.

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