Zaros is a decentralized exchange (DEX) that enables users to trade, earn, and build derivatives on Arbitrum and Monad blockchains. The platform combines perpetual futures trading with boosted restaking vaults to create a comprehensive DeFi ecosystem for both traders and liquidity providers. ^[1]

Overview

Zaros distinguishes itself in the DeFi landscape by connecting Liquid Restaking Tokens (LSTs & LRTs) with perpetual futures trading. The platform allows users to trade with up to 100x leverage across various markets including cryptocurrencies, forex, and commodities, while also providing innovative yield opportunities through its ZLP Vaults. ^{[2] [23]}

The core innovation of Zaros lies in its Market Making Engine, which serves as infrastructure for both its native trading platform and third-party protocols. This engine enables efficient liquidity provision and is compatible with both AMM and orderbook models, significantly reducing the time-to-market for protocols looking to build derivative products. ^[3]

Operating on Arbitrum for lower fees and faster confirmations, Zaros is also expanding to Monad to achieve even greater scalability and performance optimization for high transaction volumes. This multi-chain approach positions Zaros to serve diverse user needs across different blockchain ecosystems. ^{[2] [3]}

Key Features

Cross-Margin Trading Accounts: Zaros implements cross-margin trading accounts that allow users to back positions flexibly with over 15 different tokens as collateral. Users can create multiple trading accounts to implement different margin strategies, enhancing flexibility and risk management. ^[4]

Perpetual Futures Trading:

• Up to 100x leverage
• Multiple market types (crypto, forex, commodities)
• Advanced trading features including take profit/stop loss orders
• Real-time market data through TradingView integration
• Configurable skew and open interest caps to manage risk ^[5]

ZLP Vaults (Market Making Vaults):

ZLP Vaults are single-sided liquidity provision smart contracts that:

• Accept user deposits of various assets including LSTs and LRTs
• Lock collateral to increase caps of Zaros perpetual futures markets
• Generate multiple yield streams for liquidity providers:
  • Native yield from the deposited asset (e.g., staking rewards)
  • ETH fees paid by traders ^[6]

USDz Ecosystem Stablecoin

• Serve as a stable source of value within the platform
• Enable leverage trading and liquidity provisioning
• Maintain stability through overcollateralization ^[8]

Technical Architecture

Tree Proxy Pattern

• Efficient upgrades and maintenance
• Modular component integration
• Secure interaction between different protocol elements ^[9]

Perps Engine

• Order execution and matching
• Position management
• Liquidation processes
• Funding rate calculations
• Oracle integration for price feeds ^[10]

Market Making Engine

• Accepts deposits from liquidity providers
• Allocates capital efficiently across markets
• Manages risk parameters including skew and open interest caps
• Distributes trading fees to liquidity providers ^[11]

zPoints

Zaros implements a seasonal rewards system where participants can earn zPoints through various activities, such as engaging with the platform, joining the Trading League Competition, and providing liquidity to ZLP Vaults. These zPoints are designed to be converted into ZRS tokens at designated intervals, typically at the conclusion of each season. Each season operates with a unique points system, meaning that points accrued in one season are not transferable to the next, and conversion rates may differ. The Trading League Competition offers an opportunity to increase zPoints, with participants also earning Elos, which act as multipliers to enhance the total zPoints earned. Participants are encouraged to stay informed about each season's specific rules and opportunities to optimize their rewards. ^[22]

Tokenomics

Zaros Token ($ZRS)

The ZRS token, adhering to the ERC-20 standard, functions as the utility token for Zaros. Token holders can lock their ZRS tokens within the protocol for a period of up to one year to receive veZRS tokens. It has a total supply of 1,000,000,000 tokens with an initial circulating supply of 95,929,470. ^[21]

Allocation

• Investors: Allocation for early investors with a 6-month cliff and a 12-month vesting period
• Future Core Contributors: Token allocation for upcoming core team members with cliff and vesting periods TBD
• IDO LBP: Token allocation for the Initial DEX offering through Fjord Foundry's LBP system with no cliff or vesting
• Treasury: Reserved tokens for operational needs, opportunistic fundraising, and ongoing expenses (0.75% at TGE, no cliff, vesting schedule TBD)
• Advisory: Tokens allocated to advisors with a 6-month cliff and an 18-month vesting period
• Core Contributors: Token allocations for the core team members with a 6-month cliff and a 12-month vesting period
• Founders: Token allocations for the founders with a 6-month cliff and a 24-month vesting period

Token Utility

• Used for protocol governance through the Zaros DAO
• Provides fee discounts for traders
• Enables participation in platform revenue
• Current price: $0.00344 (as of data collection) ^[12]

Partnerships and Investors

Zaros has secured backing from notable investors and partners:

• SNZ
• Seven
• Cogitent Ventures
• Dutch Crypto Investors
• ETHLizards
• Rock Holding
• BaseDAO
• Honey Island Capital

The project also benefits from advisors including Anthony Sassano (Founder of The Daily Gwei), Kieran Warwick (CEO at Illuvium), Fernando Martinelli (CEO at Balancer), and other industry leaders ^[19]