Sui Perp Notes | Running GMX Model ZO

ZO adopts a trader-to-pool model, similar to @GMX_IO

model, where users bet against the liquidity pool instead of matching with other traders.

Team member Theo stated that the advantage of this design is near-zero slippage, as prices come from Pyth and large orders can also be executed at oracle prices.

The current APR of the LP pool is approximately 100%, supporting SUI native tokens as collateral.

The cost is having to deal with 'toxic flow', which means that some people exploit oracle delays for arbitrage.

ZO's response is to charge additional fees for closing positions within a short time frame, which may affect some high-frequency traders but can protect LP's earnings.

Another feature is the AI-assisted functionality, which currently allows checking technical indicators, with plans to create a trading agent for automated execution strategies in the future 🤖.