Zeta Markets Plots Solana L2 Despite Previous Ecosystem Opposition

Zeta Markets plans to launch a Layer 2 network on Solana, despite L2s previously comprising a polarizing subject within the Solana community.
On Sept. 20, Zeta Markets, a Solana-based derivatives exchange, announced it is working on a rollup called Bullet, describing the project as the first Layer 2 network built on Solana.
Bullet will combine Solana-based data availability and settlement alongside an off-chain zero-knowledge virtual machine facilitating smart contract execution. Zeta Markets expects to deploy a testnet for Bullet during Q4 2024 with a mainnet launch targeted for Q1 2025.
Zeta Markets also announced plans to launch a new version of its decentralized exchange on Bullet dubbed Zeta X. The project claimed Zeta X will offer 5-millisecond latency and support chain abstraction in a bid to offer a user experience comparable to centralized exchanges.
“By combining the power of a zkVM engine with Solana’s settlement and data availability layers, we’re bringing CEX-level speed and efficiency on-chain,” said Tristan Frizza, the founder of Zeta Markets.
The announcement was made during the Solana Breakpoint conference.
"Layer 2 solutions are essential for closing the gap between DeFi and traditional finance in terms of speed and efficiency," said Austin Federa of the Solana Foundation. "Despite the challenges, these advanced L2s are practical enough to be foundational technology, offering faster block times and enhancing security, all while staying true to the principles of decentralization."
Zeta Markets hosted $3.2 million worth of trades over the past 24 hours, down from an all-time high of $243 million, according to DeFi Llama. The protocol has hosted nearly $10.9 billion in volume since launching 12 months ago.
L2 scaling divides Solana community
Layer 2-based scaling is a divisive topic within the Solana community, with many influential figures staunchly opposed to using L2s for scaling.
In May, Anatoly Yakovenko, the CEO of Solana Labs, criticized Ethereum’s “fragmented” Layer 2 ecosystem during the Solana Crossroads 2024 conference. “This is an opportunity for a single giant world computer that synchronizes at the speed of light,” Yakovenko said.
However, Yakovenko has since suggested specialized L2s have a place within Solana's ecosystem, despite remaining opposed to generalized Layer 2 networks.
In June, the testnet implementation of Light Protocol’s “zero-knowledge compression” proved controversial, with prominent members of the Ethereum community asserting that Light Protocol was simply shipping a Layer 2 network.
“One day the Solana crowd will realize what they’ve built is a good L2 feature/validity-based rollup,” tweeted Adam Cochran, the vice president of operations at SBT Partners.
“It’s like an L2 without all the things that people complain about L2s,” Yakovenko retorted.
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