Zeta Markets, a decentralized derivatives protocol operating on Solana, has introduced its native governance token, Z, as part of a broader strategic initiative. The token launch coincides with plans to roll out Solana’s inaugural layer 2 scaling solution, according to a press release from Zeta Markets.

The Z token, with a total supply of 1 billion, aims to foster community engagement and participation within the Zeta ecosystem. As an integral part of the protocol, the token will enable users and community members to influence important decisions and receive additional rewards through staking.

Initially, 10% of the Z token supply will be distributed via an airdrop to active Zeta traders, stakers, and strategic Solana community participants. Active traders will receive 50% of the initial distribution based on their Z-score, while stakers will receive 40%. The remaining portion will be allocated to selected Solana community members.

Moreover, Zeta Markets plans to allocate 30% of the token supply to incentivize market makers, who play a crucial role in maintaining liquidity and optimal trading conditions on the platform.

Tristan Frizza, the Founder of Zeta Markets, expressed enthusiasm for the token launch, emphasizing the protocol’s commitment to democratizing decentralized finance (DeFi). Frizza highlighted Zeta’s track record of facilitating billions in trading volume and its aim to offer a transparent and user-centric DEX experience.

With over $21 million worth of cryptocurrencies locked in Zeta Markets, the platform ranks as the fifth-largest derivatives platform on Solana, according to DeFiLlama data.

The introduction of the Z token marks a significant step towards empowering the Zeta community and shaping the future trajectory of decentralized finance on Solana.

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Senator Elizabeth Warren is challenging the push for a stablecoin bill without anti-money laundering laws, citing national security risks in a letter addressed to House Financial Service Committee leaders Patrick McHenry (R-NC) and Maxine Waters (D-CA).

In her letter, Warren warns of potential risks associated with stablecoin regulation, emphasizing concerns about consumer protection, banking system stability, and national security threats.

The letter comes amid discussions about McHenry’s “Clarity for Payment Stablecoins Act,” which proposes increased regulation for stablecoins akin to traditional financial institutions.

Warren’s advocacy for the Digital Assets Anti-Money Laundering Act (DAAMLA) was reinforced during a recent Senate hearing, where she underscored the importance of anti-money laundering laws in stablecoin regulation efforts.

Long known for her stance against cryptocurrencies, Warren’s proactive measures reflect her commitment to imposing stringent oversight on the crypto industry, particularly regarding illicit financial activities.

Despite the pushback, stakeholders like Circle CEO Jeremy Allaire remain optimistic about the passage of stablecoin legislation in 2024, highlighting ongoing momentum in regulatory discussions.

Warren’s letter underscores her unwavering dedication to crypto regulation, although the outcome of legislative consensus remains uncertain.

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In the fund’s prospectus, Defiance highlights the distinctive characteristics and risks linked to daily leveraged investment outcomes, advising investors of the amplified volatility and riskiness compared to non-leveraged alternatives. It acknowledges the possibility of its ETF underperforming against tracked assets over extended periods, particularly if Ether futures remain stagnant or see modest gains beyond a single day, thus catering to investors actively managing their portfolios.

Advancements in Leveraged Crypto ETFs

Recently, Defiance submitted a filing for its 2X Short MSTR ETF, introducing a leveraged short position on MicroStrategy, a company often perceived as a leveraged bet on Bitcoin. However, this move drew criticism from industry figures like Blockstream CEO Adam Back.

Following suit, ProShares filed for their own 2X and -2X spot Ether ETFs, indicating a burgeoning interest in leveraged crypto offerings.

The Significance of Ether Futures ETFs

The launch of Defiance’s 2X Ether Strategy ETF comes on the heels of the SEC’s approval of Ether futures ETFs for public trading in October. This spurred a wave of applications from various asset managers, echoing the trend following the approval of the inaugural 2X Bitcoin futures ETF in June.

Although initial Ether ETFs saw modest trading volumes compared to Bitcoin counterparts, their approval signaled a potential shift in the SEC’s stance on crypto ETFs. Subsequently, Bitcoin spot ETFs were introduced, garnering considerable investor attention and inflows.

Currently, investors await the SEC’s verdict on ETH spot ETFs, with skepticism prevailing regarding their imminent approval.

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Over the past 24 hours, the top ten memecoins native to the Solana network have all seen declines, accompanied by a decrease in the value of Sol, the network’s native cryptocurrency, by over 3%.

Among the notable decreases, Dogwifhat saw a decline of 5%, while Bonk experienced a drop of 3.5%. Book of Meme faced a significant downturn of 10%, and Jeo Boden’s value decreased by 1.3%. Cat in a Dogs World suffered the most substantial decline, plummeting by 18.9%, followed by Popcat with an 18.0% decrease. Myro encountered a 5.0% drop, while Wen and Slerf both experienced declines of 14.4% and 7.4%, respectively. Additionally, Catcoin saw a decrease of 7.7% in its value.

As a result, the entire Solana memecoin market cap now stands at $8.3 billion, constituting 12% of the total memecoin market value, estimated at around $64 billion, according to Coingecko data.

Furthermore, the daily moving average of non-vote transactions on the Solana network has fallen to approximately 24 million, marking a multi-week low. This decline in transactions coincides with congestion on the Solana network, attributed to spam transactions.

Despite the decrease in memecoin prices, the popularity of on-chain memecoin trading on Solana led to a new all-time high in on-chain volumes, measured in U.S. dollar terms, on Friday.

Solana Liquidations Spike

Sol, the native cryptocurrency of the Solana network, experienced a decline of over 3% in the past 24 hours, trading at $175 at 9:22 a.m. ET, according to The Block’s Price Page.

Notably, Sol long positions bore the brunt of Monday’s market volatility, with over $4.33 million in Sol long liquidations recorded in the past 24 hours out of a total of $4.81 million in liquidations across the wider cryptocurrency market, which saw over $173 million in liquidations over the same period, according to Coinglass data.

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