Architecture

Derivatives Clearing Protocol

The Derivatives Clearing Protocol is the cornerstone of Zeuz, enabling non-custodial clearing for derivative instruments. This protocol allows Zeuz to act as a self-reinforcing liquidity network by aggregating positions across multiple markets and exchanges into a single margin account. This results in unprecedented capital efficiency, as traders can offset losses from one position with profits from another, leverage portfolio profits immediately, and reduce margin requirements by recognizing P&L offsets between positions. The protocol manages collateral through a system of collateral pools, ensuring safe levels of collateralization, cross-collateralization, and efficient liquidation processes. This mechanism ensures that all trades are settled on-chain in a transparent and secure manner, eliminating risks associated with centralized custodians.

Liquidity Layer

The Liquidity Layer in Zeuz is underpinned by a passive liquidity mechanism that preserves the best features of Automated Market Makers (AMMs). This mechanism creates a unique meeting point for makers and takers, aggregates liquidity, and ensures a single price for every trade. It permanently offers liquidity and quotes prices, allowing traders to execute trades whenever they find the price acceptable. LPs (Liquidity Providers) can passively manage their capital without continuously updating their quote prices. The liquidity pools bridge between long and short open interests, acting as temporary counterparties to balance market imbalances. This system optimizes capital efficiency for both traders and LPs, with features like a constant-product pegging mechanism, dynamic funding rates, and robust risk management through Reya’s margin system. The passive pool boasts over $200 million in liquidity, supporting deep liquidity for the BTC and ETH markets.

rUSD

rUSD is the native stablecoin of the Reya Network, used for settling payments within the Zeuz platform. Initially deployed as wrapped USDC, rUSD ensures that all P&L exchanges within the system are conducted in a neutral native token. This facilitates smooth and efficient margin management and settlement processes. rUSD is designed to evolve into a fully integrated stablecoin, offering native yield and deep synergies with Reya’s Protocol Layer. It will serve as the universal currency within the Zeuz ecosystem, used for fees, insurance funds, and other financial operations. The stablecoin’s design aims to provide a reliable store of value and efficient means of settlement, deeply embedded within Reya’s comprehensive financial system.