A quick three-minute overview of Zeta Markets L2 Bullet and flagship DApp Zeta X

Here is the translation: Solana L2 Bullet and the flagship DApp Zeta X: How do they work? Will it undermine the utility of the ZEX token? Author: Karen, Foresight News The potential of the decentralized derivatives market is well-known. However, on Solana, the full prosperity of the derivatives market has not yet been fully realized, mainly due to the current limitations of on-chain performance, response latency, and user experience bottlenecks. To address these challenges, Zeta Markets is injecting new vitality into the Solana ecosystem through its upcoming Solana Layer2 project Bullet and the perpetual CLOB platform Zeta X. At the recent Solana Breakpoint conference, Zeta Markets co-founder Tristan Frizza revealed that Zeta Markets is incubating and developing a Solana ecosystem real-time L2 project called Bullet. The project is expected to launch the testnet in Q4 2024 and the mainnet in Q1 2025. The first DApp in the Bullet ecosystem, the perpetual CLOB platform Zeta X, will also provide early access opportunities for ZEX stakers. The development of Bullet Initially, Zeta Markets planned to build its Layer2 as a closed application chain focused on the perpetual contract order book model. However, after extensive feedback from the Solana Foundation, partners, users, and ecosystem developers, Zeta Markets recognized the potential of this Layer2 to go far beyond that. In the future, this Layer2 may cover options, spot trading, gaming, and other high-throughput applications, becoming a more diversified and powerful platform. This is how Bullet was born. What is Bullet? So, what is Bullet? Bullet is a Rollup that uses Solana L1 as the settlement layer and data availability layer, utilizing ZK fraud proofs for verifiable on-chain settlement, fully leveraging Solana's security and transparency. By utilizing zero-knowledge proofs and verifiable off-chain computation, Bullet will place the latency-critical components of the system off-chain while still maintaining verifiability and censorship resistance. Zeta Markets team member @Tristan0x said, "This allows us to achieve near-instant 5ms soft confirmation latency, thousands of TPS, and provide high leverage in a secure manner through an unconstrained-by-on-chain-compute risk engine. Additionally, Zeta Markets plans to enable an SVM module that will allow permissionless sandbox smart contracts to run on top of it, leveraging Zeta's existing perpetual, lending, and spot liquidity." Meanwhile, Sovereign Labs has also provided the experience of building secure and interoperable ZK-Rollups on a shared data availability layer, providing a critical framework for Bullet's scalability. How does Zeta X work? What are its features? Currently, the architecture and workflow of Zeta X are largely the same as previously designed. On the Zeta X platform, users first deposit their collateral assets into a Solana smart contract that holds the custodial funds. At this point, a full node that listens to Solana Block Headers will parse the transactions and generate deposit proofs. These proofs will be submitted to the sequencer, who will then update the user's balance records in the Rollup. Once these steps are completed, users can freely trade on Zeta X. When published to the DA smart contract, the sequencer will include the transactions in future blocks. The Zeta Markets team is confident in reducing the deposit speed to under 15 seconds. When interacting with Zeta X, users sign transactions with their wallet to generate a session key, enabling smooth and seamless trading. These transactions are sent to the sequencer, where they are ordered and processed through the state transition function (STF). Users will receive a soft-committed transaction receipt within a few milliseconds. Once the transactions are ordered and executed, the sequencer will generate a Zeta X blob and publish it to the Solana DA smart contract. Once the block becomes available from the DA component, the settlement process will be triggered, with full nodes executing each transaction to compute the latest state root. Zeta Markets team member @0xjcaa revealed the functionalities and features that can be achieved on Zeta X: - Near-instant soft confirmations (3-5ms) - Seamless one-click signing/easy social logins via session keys - Over 50x leverage with multi-asset collateral - Depth liquidity and market-making conditions with REST/Websocket API and CEX-like latency - Fully transparent and verifiable, with a relatively trustless dispute mechanism Any token issuance plans? Regarding token issuance plans, Zeta Markets team member @PDAnimol stated that Bullet currently has no token issuance plans. Zeta Markets plans to launch the Zeta X testnet within a month. Zeta X will utilize Bullet's core infrastructure and become the first super-app on Bullet, providing a more liquid and reliable trading experience. Zeta X will provide early access privileges to ZEX stakers. However, it is worth noting that in a tweet published by Zeta Markets in May 2024 when the Zeta X (ZX) Litepaper was released, Zeta X was to be supported by the Z token. The Z token would serve as the native gas token for transactions on the Zeta X Rollup and as an incentive mechanism for stakeholders (including sequencers) to perform critical operations on Zeta X. But in the updated Zeta X Litepaper document from 3 months ago, the ZEX token has been positioned as the governance token for the Zeta Markets protocol, providing additional utility (such as exclusive fee tiers) and further use on Zeta X for long-term stakeholders holding ZEX. According to the latest confirmation from @imranfaststart, Zeta X remains the focus of the Zeta Markets team currently and will be the flagship DApp launched on Bullet. A portion of the Zeta team will also shift their attention to the Bullet project, collaborating with Sovereign Labs to bring L2 scalability to Solana. Furthermore, ZEX will continue to be the core token in the Zeta Markets ecosystem. Rewards will still be distributed in ZEX, and ZEX stakers will retain the benefits of additional rewards and governance rights. @imranfaststart explicitly stated that the launch of Zeta X on Bullet will not disrupt or undermine the utility and governance of ZEX. As for whether Bullet will introduce a new token in the future, it is currently unknown, and Foresight News will continue to track the developments.