Announcing Zeta FuZe

Why FuZe?

Benefits Of Building With FuZe

  • 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.

How To Build With FuZe

  • 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

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

Zeta ζ

2.1K Followers

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