A Community-Governed P2P Protocol
0x is a decentralized exchange protocol enabling the peer-to-peer exchange of ERC20 and ERC721 assets.
It uses a modular system that permits projects (“relayers”) to add exchange functionality to any product experience.
The San Francisco-based 0x is community-governed and open source, with anyone able to utilize the protocol to service multiple markets (crypto, stocks, gold, NFTs, etc). The platform is powered by the ZRX, which is used to pay trading fees to relayers. ZRX also confers governance powers.
Born During the Boom
0x concluded its initial coin offering (ICO) in mid-2017, during the height of the token sale boom. The sale was a resounding success, with $24 million worth of ether raised from 12,000 investors.
Not bad going, wouldn’t you say?
0x is a veritable OG, having been on the scene before the term “defi” was even coined. As new models for token exchange and governance have been pioneered in the defi space, 0x has seized the opportunity to refresh its core products and incorporate smarter mechanisms, while building on the solid framework its skilled team have spent years perfecting.
0x Mission and Values
In its own words, 0x is committed to building “a global financial system that is more efficient, transparent, and equitable than any system that has existed in the past.
This new infrastructure will be free to use and run on open source code, stripping away layers of middlemen and providing individuals with greater financial sovereignty.”
To achieve its ambitions, 0x follows what it calls a common sense approach with tenets such as “do the right thing”, “consistently ship” and “focus on long-term impact” held dear.
Due to the team’s long-standing in the industry and reputation for technical excellence, 0x is highly regarded by the defi community, despite its token relay system having been eclipsed by AMMs (Automatic Market Makers) such as Uniswap. The launch of DEX aggregator Matcha in summer 2020 showed that 0x still have a few tricks up their sleeve.
The supply of ZRX tokens is hard-capped at 1 billion, with 500 million having been sold to investors such as Polychain Capital and Pantera Capital in the aforementioned 2017 ICO. As for the remainder, they were split between the 0x company, a developer fund, the founding team, early backers, and advisors. The market cap of ZRX is just under $261m, with average 24-hour volume of $60m.
The 0x protocol was conceived as a means of facilitating interoperability among decentralized applications (dApps) that feature exchange functionality, with trades executed by a system of Ethereum smart contracts that any dApp can hook into.
Developers can integrate with 0x at the smart contract or application layer, and projects building on the platform include Paradex, Radar, LedgerDex and OpenRelay. 0x’s 34-strong team has collective expertise in engineering, finance, academic research, business and design — and is passionate about accelerating the adoption of decentralized technology.
0x is all over social media, sharing content on Twitter, Discord, Facebook, Reddit and LinkedIn.
As you would expect for a project of its age and repute, it has an army of followers – over 160,000 on Twitter and around 10% of that figure on Reddit. These network effects have helped make 0x one of the most vocal and engaged defi projects in the industry.
Market and Competition
0x’s goal of creating a tokenized world where all value can flow freely is shared by several other projects. Similar entities include Kyber, Bancor, AirSwap, Uniswap, DeversiFi, Mesa, IDEX and SushiSwap, with the surge in decentralized finance activity bringing ever higher volume to DEXs.
Given that it’s already been around for a number of years, building compelling use cases and rolling through the iterations (it’s currently on Version 3), 0x is definitely in the Premier League of Ethereum DEXs.
It’s worth noting, incidentally, that 0x isn’t in direct competition with many of the platforms mentioned here; in fact its Matcha aggregator pulls liquidity from Kyber, Uniswap, Curve, and Oasis.
News and Views
The official 0x blog is where you’ll find developer and governance updates, analysis, interviews, hackathon recaps, op-eds and in-depth information related to the 0x ecosystem. Co-founders Amir Bandeali and Will Warren are also pretty active on Twitter, and so a good gauge of 0x’s direction and philosophy.