DeFi Technologies to enhance trading desk with zero-knowledge proofs DeFi Technologies to enhance trading desk with zero-knowledge proofs
The firm said its new partnership will boost its trading desk ability for spotting low-risk arbitrage opportunities.
2 min read
Updated: Jul. 30, 2024 at 5:26 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
DeFi Technologies, a Canadian fintech firm, is set to enhance its trading infrastructure through a new partnership with Zero Computing, according to a July 30 statement shared with CryptoSlate.
The collaboration aims to integrate zero-knowledge proof tools to boost operations on the Solana and Ethereum blockchains by optimizing its ability to identify and execute arbitrage opportunities.
Additionally, it will improve the performance of its trading desk DeFi Alpha by enhancing its use of ZK-enabled Maximal Extractable Value (MEV) strategies.
Zero-knowledge proof (ZKP) technology provides an added layer of encryption to ensure trade privacy and has recently gained widespread adoption in cryptographic applications.
Trading strategies optimization
DeFi Technologies plans to use these tools to refine DeFi Alpha’s capacity for spotting low-risk arbitrage opportunities. The trading desk has already generated nearly $100 million in revenue this year, and this new partnership is expected to further enhance its algorithmic strategies and market analysis capabilities.
Zero Computing’s technology will integrate advanced ZKP features into DeFi Alpha’s infrastructure. This upgrade will streamline trading processes, enhance transaction privacy, and boost operational efficiency.
According to DeFi Technologies, these improvements will increase the security and sophistication of DeFi Alpha’s trading strategies.
The collaboration will also advance trading approaches for ZK-enabled MEV, a novel concept in MEV that focuses on maximizing value through transaction fees and arbitrage opportunities within block production.
In addition, DeFi Technologies plans to leverage Zero Computing’s technology to develop new financial products, such as zero-knowledge index Exchange-Traded Products (ETPs).
Olivier Roussy Newton, CEO of DeFi Technologies, said:
“By integrating their cutting-edge zero-knowledge proof technology, we are not only improving the efficiency and privacy of our transactions but also paving the way for innovative trading strategies.”
Expanding verifiable computation to Solana
According to the release, Zero Computing has created a versatile, chain-agnostic platform for generating zero-knowledge proofs. The platform currently supports Ethereum and Solana, and the firm plans to expand compatibility with other blockchains in the future.
The firm added that it is at the forefront of introducing verifiable computation to the Solana blockchain, enabling off-chain execution of complex computations with on-chain verification. This development represents a significant step in expanding ZKPs across various blockchain ecosystems.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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