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Zygo – The Perpetual DEX on Mitosis

Zygo – The Perpetual DEX on Mitosis

Introduction

Zygo is the perpetual decentralized exchange (perp DEX) built natively on the Mitosis blockchain. Powered by Ecosystem-Owned Liquidity (EOL), Zygo delivers gasless, transaction-free trading with real-time oracle pricing. It’s designed to give traders the speed and smoothness they expect from centralized exchanges without compromising on decentralization, transparency, or performance.

Through features like permissionless access, multi-asset collateral deposits, social trading, and team competitions, Zygo aims to define a new generation of DeFi trading.

What Makes Zygo Different?

  1. Gasless, Transaction-Free UX

Opening or closing positions on Zygo does not require users to pay on-chain gas fees. This is a major leap forward for DeFi, where transaction costs can eat into profitability.

  1. Real-Time Oracle Pricing

Zygo integrates decentralized oracles to deliver live, accurate price data for all listed assets. This reduces risks of slippage and protects traders from price manipulation attacks.

  1. Multi-Asset Collateral

Traders can deposit various crypto assets as collateral, giving them more flexibility and capital efficiency compared to platforms that restrict deposits to a single asset.

  1. Social and Team-Based Trading

Users can participate in competitions, copy top-performing traders, and trade collaboratively in teams, merging financial strategy with community engagement.

  1. Permissionless and Decentralized

Anyone can trade on Zygo without needing approval from intermediaries. This keeps Zygo fully aligned with the ethos of decentralized finance.

The Power of Ecosystem-Owned Liquidity (EOL)

Most trading platforms rely on external market makers to provide liquidity, but this can lead to instability if those providers pull their funds. Zygo’s EOL model keeps liquidity within the Mitosis ecosystem itself, ensuring consistent market depth and stable trading conditions for the long term.

This is not just about safety, it’s about independence. With EOL, Zygo isn’t at the mercy of outside liquidity providers, which gives traders greater confidence in the platform’s resilience.

Real-Time Funding Fees

The Problem with the Industry Standard....

In most perpetual trading platforms, funding rates the fees paid between long and short traders to keep prices aligned with spot markets are settled in 8-hour batches. This model, copied from centralized exchanges, has major flaws:

  1. Scalability Issues: Batch settlement loops over every open position. As user numbers grow, gas costs and processing times explode.
  2. Timing Exploits: Traders can game the system by entering right after a funding payment and exiting just before the next, avoiding most fees despite having market exposure.
  3. Inaccuracy: A position held for 7 hours 59 minutes is charged the same funding as one held for only 1 minute which is clearly unfair.
  4. Liquidity Lag: Funding updates only every 8 hours, while markets move every second. This makes liquidity pricing slow and unresponsive during volatile periods.

Zygo’s Real-Time Solution

Zygo has replaced batch settlement with real-time funding fee calculation. Instead of waiting for 8-hour intervals, fees are continuously updated based on how long a position is open.

Fairer for Traders: You pay funding fees only for the exact time your position is held.

Harder to Game: No more jumping in and out to avoid charges.

Scalable: Real-time updates don’t require looping over every position, making the system efficient even as user numbers grow.

Market-Responsive: Funding rates adapt to volatility instantly, ensuring liquidity pricing stays accurate.

In conclusion...

By pairing EOL liquidity with real-time funding fees, Zygo solves two of the biggest challenges in perpetual trading: liquidity stability and fair, efficient cost structures. The result is a DEX that feels as fast and flexible as a centralized exchange but with all the security and openness of collateral in defi.

In short: Zygo is not just another perp DEX. It’s an evolution of perpetual trading designed for the next era of decentralized finance, one where traders get speed, fairness, deep liquidity, and full control over their assets.

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