What is Zeta (ZEX)?

Deep Dive

1. Core Functionality

Zeta Markets operated as a decentralized perpetuals exchange, allowing users to trade leveraged derivatives without intermediaries. Unlike traditional DEXs limited to spot trading, Zeta supported up to 10x leverage on assets like BTC and ETH while letting users retain custody of funds. Its order book model mimicked CEX efficiency but with on-chain settlement (Zeta Markets Docs).

2. Technical Backbone

Built on Solana, Zeta utilized the network’s high throughput (~65k TPS) and low latency to offer near-instant trade execution—critical for derivatives trading. The platform featured a hybrid architecture: off-chain order matching for speed paired with on-chain collateral management for transparency.

3. Token Transition

ZEX initially served as the governance and utility token, granting fee discounts and voting rights. However, the project announced its discontinuation in May 2025, migrating remaining ZEX supply to the new BULLET token. This followed challenges in sustaining liquidity and user adoption post-2024 (CoinMarketCap).

Conclusion

Zeta attempted to bridge CEX-like performance with DeFi’s trustless ethos but ultimately sunset its operations. Its legacy highlights the challenges of scaling complex financial products in decentralized environments. What innovations might successor projects adopt to solve Zeta’s liquidity and sustainability hurdles?