Frequently Asked Questions
What is Bullet?
Bullet is the trading layer for DeFi. It’s designed as a Network Extension that’s purpose-built for high-speed DeFi, bringing performance and capabilities that exceed CEXs on-chain, while maintaining transparency and verifiability. It features perpetuals, spot and lending capabilities as core primitives and is built to be fast, congestion proof and resilient to MEV. It still ultimately posts transactions to Solana where consensus, data availability and settlement occurs, allowing it to inherit the security guarantees of the L1.
Why is Zeta evolving into Bullet?
Zeta Markets started out as an options exchange on Solana, it then transitioned into perps and grew to trade $15bn in volume and onboard over 100k users at times taking up mid single digit percentages of Solana’s network bandwidth. Throughout this journey it has become clear that in order to build a trading platform on DeFi that can scale past CeFi we must not only build the application but also be deeply involved in the infrastructure stack. As such we are evolving into Bullet as a way to solve all the trading and technological scaling challenges we faced when building a purpose-built trading blockchain. It features perps, spot and lending as core primitives that enable an ecosystem of trading applications.
Bullet marks a clear shift into becoming an ecosystem and a network with a focus on being a scalable and unstoppable trading layer. As such the token will exist as a network token used to operate and secure the network. Existing ZEX community members will be able to migrate into this new token with 1:1 rights ensuring no dilution at genesis. Bullet will also launch with a fully featured DEX.
What is a Network Extension?
A network extension is a dedicated execution environment that sits on top of Solana built for application specific use cases. In Bullet’s case it allows for the execution of complex exchange and risk engine logic while bringing latency down to 2ms. Bullet still ultimately settles and posts transactions back to Solana where the transactions can be verified and the network is secured.
How does Bullet work?
Bullet is a Network Extension, it is a dedicated execution layer for trading which process transactions in real-time brining latency down to 2ms, which is 200x faster than other Solana DEXs and faster than Binance. It then posts the transactions to the Solana L1 and due to Bullet’s zkVM (zero-knowledge-virtual-machine) provers can then generate ZK-proofs for these transactions ensuring fairness, transparency and verifiability.
What happens to Zeta?
Zeta will slowly be wound down and the DEX will be absorbed into Bullet as the flagship application. The primary reason for doing so is to consolidate liquidity, time and resources into one outstanding platform. Users will be given ample heads up to wind down their existing positions and migrate over to Bullet to benefit from the enhanced liquidity and trade execution it offers.
What happens to ZEX?
ZEX will be depreciated/not maintained going forward, and the BULLET token will be launched. ZEX community members/holders will be able to migrate their tokens in a 1:1 conversion into the new Bullet network token at genesis. This migration will occur after the Bullet mainnet release once the network is stable and begins its roadmap towards proper decentralization.
What happens to my staked ZEX?
Users who have staked ZEX will be migrated as stakers to the Bullet network. When the token migration into Bullet occurs, these users will split a significant pool of bonus tokens as boosts to their stake, rewarding their long term alignment. A users share of bonus tokens will be based on the users staking activity.
Why is a new token needed?
Bullet is not just a rebrand, it is a new network with a fundamentally different token with features such as gas fees, staking and node operations/rewards which are used to power the operation of the Bullet network which would not be possible with the existing token.
What is the Bullet token used for?
The Bullet token is a network token that will be deeply integrated with the core trading primitives. Its network functionality will be similar to L1 tokens where users pay gas fees in the native token and various node operators will stake Bullet tokens to operate nodes and support network security. The token will also tie the core trading primitives into the Bullet network, read more here.
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