Zero Knowledge Lighter, Perp DEXs and Custom ZK Circuits
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Aug 27, 2025 
In this discussion, Tarun Chitra, an investor at Robot Ventures with a focus on blockchain and perpetual DEXs, joins the hosts to explore the cutting-edge Lighter project. They dive into the origins and evolution of perpetual trading, comparing privacy and transparency in market-making. Tarun emphasizes the benefits of custom ZK circuits over existing zkVMs for system efficiency. The conversation also covers the role of quants and engineers in building robust DEXs, and the innovative ways Lighter utilizes Ethereum and zero-knowledge rollups to enhance trading experience.
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Why Perpetuals Matter
- Perpetual futures (perps) offer capital-efficient leveraged exposure that made them the dominant derivatives format in crypto.
- Funding payments tether perpetual prices to spot and enable continuous rebalancing without fixed expiry dates.
Respect Leverage And Liquidations
- Avoid high nominal leverage unless you understand liquidation mechanics and margin behavior.
- Monitor funding and margin closely because liquidation systems forcibly close positions to protect solvency.
Perps Improve Price Discovery
- Perp exchanges attract sophisticated market participants because leverage reduces capital needs for price discovery.
- More rational, capital-efficient traders generally improve market quality and reduce volatility.