Introduction
Zeno is a native Perpetual DEX on Metis, powered by the cutting-edge HMX technology. The imminent launch of a decentralized sequencer framework, the projected expansion of Total Value Locked (TVL) and user base for Metis create the perfect timing for Zeno’s debut. The strategic decision to launch Zeno now is made to harness the momentum of the ecosystem’s growth, leveraging HMX’s success on Arbitrum, positioning Zeno to fulfill its aspiration to be the #1 Decentralized Leveraged Trading platform on Metis.
Zeno’s Features:
- Leveraged Trading: Zeno’s leveraged trading feature is powered by HMX’s technology, which has facilitated ~$14 billion in total trading volume on Arbitrum. Renowned for its versatility and comprehensiveness, this decentralized trading feature stands out in the industry by delivering an exceptional user experience. It closely replicates the perpetual trading experience on centralized exchanges (CEXes) without compromising the advantages of decentralization.
Zeno’s leveraged trading feature incorporates several sub-features to enhance the overall trading experience, and it is the only decentralized protocol on Metis offering all these features:
- Cross-margin support: Share margin balances across multiple positions to maximize capital efficiency for traders, especially during periods of high volatility.
- Multi-asset collateral support: Use BTC, ETH, USDT and many other assets as collateral for trading, allowing users to effectively implement many trade strategies.
- Progressive web app (PWA): Create an app-like experience for mobile users, mimicking an experience of trading on a CEX application without losing the benefits of decentralization.
- Gasless trading & order management: Trade and manage order on Zeno through an intent-based architecture without worrying about funding wallet with gas.
- Subaccount support: Trade using different sub accounts under the same wallet address, creating a better user-experience and convenience for position risk management.
- Python SDK API: Allow traders to use Zeno as their preferred platform for automated and algorithmic trading, increasing the trading volume for the platform.
- Account abstraction: Allow for one-click trading through account abstraction to mimic the experience of using a CEX.
- On-chart trading: Provide users with the ability to adjust their TP/SL price by click & drag on the chart.
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Swap: Zeno allows users to swap assets on Zeno with no price impact across supported assets, including BTC, ETH, and stablecoins.
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Market Making (ZLP): The ZLP vault serves as the market-making liquidity for traders on the Zeno platform. The reserved liquidity in the ZLP is utilized to distribute profits to traders. Conversely, in cases where traders face losses, their collateral is seized and added to the ZLP, as counter trading profits. In exchange for taking on counterparty risks, depositors earn trading fees, borrowing fees, and swap fees generated by traders.
Zeno’s ZLP vault is protected by a unique combination of 7 LP-protection mechanisms, as follow:
- Max Utilization Limit: Zeno reserves liquidity in ZLP for traders’ profits payout. Once the limit is reached, opening new positions are restricted, maintaining enough buffer liquidity for LPs to withdraw.
- Auto Deleverage (ADL): Triggers automatic closing of in-profit positions based on protocol-defined criteria, limiting downside risk to LPs and supporting higher trading volume.
- Profit Reserve Buffer: Monitors net current traders’ global PnL against the LP pool. When reaching a percentage threshold relative to TVL, auto deleveraging begins, starting with in-profit positions.
- Open Interest Limit: Sets separate OI limits for each market’s short and long sides, preventing excessive OI beyond predefined levels.
- Velocity-based Funding Rate: Charges traders based on their position size and direction to balance long and short OI, reducing LP exposure to one market side.
- Adaptive Pricing: Incentivize traders to open positions that help balance the long and short OI by applying premium/discount on the oracle price when traders open / close a position.
- Adaptive Trading Fees: Fees based on trading size relative to the asset liquidity depth on CEX order book to protect LP from potential price manipulation attacks.
Roadmap:
Q1 2024:
- Launch of Public Open Beta: We will launch Zeno with a Public Open Beta, where users can test out our product. During this phase, users who use our platform (trading, LP, swap) will qualify for an esZENO airdrop. Up to 2% of the $esZENO supply will be airdropped to Zeno users based on the total trading volume achieved by the platform.
Q2 2024:
- ZENO Token Generation Event (TGE): Users will have the opportunity to contribute their assets in exchange for $ZENO. The TGE will be done either on Zeno website or on a launchpad DEX partner (Hercules) The format will be a fair auction, where participants will all get the same price, with a minimum and maximum FDV set. Extra contribution will be refunded back to participants pro-rata.
- ZLP Boost: Users can commit deposits in the form of accepted cryptocurrencies to the ZLP. The deposits committed in this phase will qualify for additional $esZENO incentives. The amount of $esZENO participants in this phase will earn will depend on the amount of deposits committed and how early the deposit is committed. Bonus $esZENO incentives will be distributed monthly for the period of 1 year. Users can withdraw deposits anytime, but the remaining bonus $esZENO rewards will be distributed among all qualifying participants still remaining in the pool.
- Full-scale launch: After the LP boost is completed, the protocol will start operating at a full scale. The following happens after this phase: $esZENO emission goes live Staking feature goes live Vesting feature goes live Airdrop of $esZENO tokens to participants of the Public Open Beta
- API for Trading: Release Python SDK API to allow users to automate and route trading activities through bots and algorithms via Zeno.
- Customized Index Market: Implement customized onchain index market for users to trade.
- Progressive Web App (PWA): Improved Zeno’s mobile UI to improve the UI/UX to be on par with using a centralized exchange.
- Listing on Key Data Sites: We will list ZENO on key data sites to help broaden the awareness and reach of the protocol and the token.
H2 2024:
- Centralized Exchange Listing: Aim to secure listings on centralized exchanges to broaden Zeno’s market reach.
- Governance: Introduce governance features, allowing community members to actively participate in decision-making processes to help shape the future direction of Zeno.
- Zeno V2: Develop and launch Zeno V2, incorporating advanced features and improvements based on user feedback and evolving market trends.
- Other Undisclosed Features: Other undisclosed features to be developed and released
Value Proposition:
By leveraging technology from HMX, Zeno’s product is already battle-tested and is proven to have a strong product market fit. HMX has facilitated an impressive $14 billion in total trading volume. This outstanding achievement is a testament to HMX’s technological prowess and its ability to provide traders with a seamless and efficient perpetual trading experience.
HMX’s Statistics & Track Record as of Feb 28th 2024:
- Total Trading Volume: $13.90m
- TVL: $29.0m
- Number of assets listed: 35+
- Total revenue distributed to users: $5.5m+
- Total Unique Users: 5,500+
- Total No. of Trades Supported: 150,000+
Zeno aspires to not only replicate but surpass the accomplishments HMX achieved on Arbitrum. With official support from the Metis team, Zeno aims to become the #1 perpetual DEX on Metis.
Benefits for Users
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First full-suite battle-tested decentralized perpetual protocol: The Metis community and ecosystem will gain a battle-tested decentralized Perp trading platform with the most complete leveraged trading features, on-par with the experience of trading on centralized exchanges, allowing them to trade cryptocurrencies, FX, and commodities without concerns about centralization risks.
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Yield generating opportunity for metis community: Community members will have the chance to actively earn real yields from the revenue generated by the protocol. This presents a unique space for users to park their capital and simultaneously generate yield, enhancing their financial strategies and participation within the Metis ecosystem. The yield generating strategy may also attract additional TVL to Metis.
Security Audits:
Zeno leverages HMX’s technology, whose smart contract has been audited by Foobar, WatchPug, and Cantina. The audit reports from all parties can be found below:
Zeno Exchange - Official Links
- Website : https://zeno.exchange
- Twitter : https://twitter.com/ZenoExchange
- Telegram: Telegram: Contact @zenoexchange
- Telegram Announcement: Telegram: Contact @ZenoExchangeAnnouncement
- Medium : Zeno Exchange - Medium
- Discord : Discord