GM, this is your Daily Bolt briefing
In this edition, we’re providing you with some notes on ZKX, a starknet-based perpetuals DEX.
Keep reading to learn what the project has planned in the near future, including plans for an airdrop, incentives programs, an appchain, and more…
Stay alert in the markets ⬇
ZKX Background
ZKX aims to be the first perpetual DEX in the starknet L2 ecosystem.
The platform is slated to launch in Q1 2024.
The goal of ZKX is to provide a platform to compete with CEXs, by providing low-latency trading on a decentralized orderbook.
ZKX's Branding and Tokenomics Explained
ZKX has been busy with new initiatives like their "7 Sins" announcement and reward program, as well as the ZKX App chain, airdrop, and ZKX Account.
$ZKX tokens are designed to have real-world value. Stakers can receive a share of the exchange's revenue, and DAO governance will eventually allow the community to decide the revenue split. This is a more equitable initial token distribution to avoid market manipulation and unfair advantages.
ZKX Founder Eduard criticizes tokenonomics where insiders and investors control a disproportionate share.
ZKX aims for a model that benefits all stakeholders, including traders, investors, and the team. He also mentions the unique staking pool mechanism.
The organization has a goal of building a sustainable model for all contributors and suggests they can touch upon the staking pool.
Token distributions will happen very soon. The airdrop will be locked and distributed in the ZKX Accounts on Starknet's mainnet. This approach is to keep users engaged with their ZKX accounts, as they plan to introduce new features, including upcoming ZKX Yakuza NFTs.
The reason for locking the tokens is to avoid value depreciation before the mainnet launch. The aim is to incentivize people to hold and stake the token to receive value back in $USDC.
If trading started now, it could lead to a rapid devaluation in price, which the team wants to avoid.
There might be community members who could engage in secondary market activities, but the primary reason for the lock is to maintain long-term value.
ZKX's Airdrop Strategy & Tokenomics
The airdrop has been split into two phases to reward contributors at different milestones.
The first phase recognizes those who have contributed to the first seasons of Yakuza and the first testnet.
The second phase aims to incentivize continued contribution and attract traders from other platforms like GMX and dYdX. He mentions that 4% of the supply will be released in the first airdrop and approximately 11% in the second one.
The project has expanded eligibility to include not just OG 1 and OG 2 of Yakuza community members, but also OG 3 and OG 4 of Yakuza members.
While final numbers are not set, the team is aiming for above 20% to 25% of tokens to be available at TGE. He shares that 15% will be dedicated to the airdrops and additional allocations will be set aside for liquid incentives and early investors.
Eduard highlights that they are aiming for healthier token economics to avoid inflationary issues down the line. He mentions that their approach has been positively received by market makers, liquidity providers, and other projects. Eduard says that releasing a greater share of supply initially will be more beneficial for the market.
ZKX: Staking & High Tide Rewards
ZKX aims to serve both active traders and those seeking passive income. The platform allows for liquidity provision through various means like money pools or copy trading pools.
Both active and passive participants help each other, sustaining the exchange.
Value accrual and stability can be a challenge when it comes to staking. Traditional staking models allow people to exploit revenue cycles.
To combat this, ZKX introduced time-locked staking pools. Those who stake longer gain more revenue share and voting power in the DAO, protecting against short-term exploitation.
The game theory of ZKX rewards long-term commitment and discourages short-term opportunistic behavior, thus stabilizing the platform and the DAO.
The High Tide reward mechanism, allows for community-driven listing of assets and trading incentives.
It is designed to be modular and supports any ERC-20 token. High Tide also values the contributions of all market participants, not just volume.
The system assigns a score based on multiple factors like trading consistency, volume, and even losses.
Eduard states that High Tide is unique because it rewards both profits and losses, recognizing that all trading activity contributes to ZKX's growth. The system is designed to balance the needs of both large institutions and individual traders.
The High Tide formula has a dynamic allocation feature. It adjusts reward distribution across different markets based on trading activity and volume. This allows for competitive and adaptive incentivization for different assets and traders.
ZKX: Streamlined Trading & Rewards
The ZKX Account aims to simplify the trading experience by incorporating a built-in wallet within the exchange. Eduard mentions that this is not to compete with other wallets but to offer users an easier experience with the benefits of account abstraction.
Eduard describes the cumbersome process users usually go through when they want to trade on a layer-2 application, noting the need to use multiple wallets and platforms.
This prompted them to develop an in-house bridging mechanism that facilitates depositing funds directly from layer-1 to a ZKX account.
ZKX has its own internal bridging and messaging system, which moves funds to layer-2 and could potentially allow them to issue their own tokens directly to layer-2 accounts in the future.
The ZKX Account is designed to be DeFi-like, featuring a 12-word seed phrase for users to have custody of their accounts.
Future possibilities include enabling social logins and storing seed phrases on mobile phones, to make access to ZKX easier to access for a broader audience.
Eduard identifies a challenge of providing liquidity from ecosystems beyond Starknet. He mentions ongoing work to collaborate with other layer-2s like Mantle, Scroll, and zkSync to enable a flow of funds in and out of ZKX Accounts. This aims to make ZKX accounts more universal and adaptable to various ecosystems.
Being an early adopter and creating an account at this time has benefits, such as eligibility for upcoming airdrops and the Yakuza NFT collection. There is a gamified long-term program starting in October 2023 that will involve various activities, including the Yakuza seasons 3 and 4 and the second Testnet competition. This will all be conducted through a badge NFT system within the account.
The marketing team is excited about the gamification aspects, as they have been working on it for a while. The community should find it engaging starting from October 2023.
In the development pipeline are plans to fully integrate the .ZKX domain naming system as an NFT attached to your account. This makes transferring funds easier and adds a layer of gamification to the platform.
ZKX: Future Updates
The transfer of funds through deposits and withdrawals will be made easier, followed by the integration of NFT features to support the upcoming Yakuza NFT collection.
Future gamification programs launching in October 2023, and a testnet competition in November will allow users to trade directly from their ZKX accounts.
There are inactive tabs in the account profile, which are set to go live closer to the mainnet launch.
These features offer a more social experience, allowing users to share their profiles, user levels, NFTs, and trading experiences on social media.
Newcomers can actively contribute by joining the new seasons of Yakuza and participating in new quests, bounties, and trading competitions.
These activities will add value to their ZKX accounts, making them a higher priority for future benefits.
Creating multiple accounts is discouraged as it doesn't optimize the user experience.
There are upcoming Yakuza seasons and anyone with ideas for the Yakuza universe is invited to reach out.
ZKX is focusing on creating a sustainable, positive growth loop, and Eduard invites everyone to join in the next few months for an exciting journey.
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بله