0x liquidity protocol
0x is a liquidity protocol that enables DeFi applications in the Ethereum network.
0x facilitates a smart contract ecosystem to allow the P2P exchange of Ethereum-based assets. Its native token ZRX enables the community members to vote on a variety of proposals within the 0x system.
Various real-world and digital assets, including fiat currencies, stocks and commodities, could hypothetically be traded on 0x.
Overall, 0x aims to build a robust ecosystem that boosts liquidity for DeFi projects and facilitates mass adoption of cryptocurrencies. In addition, 0x offers functionality for launching new financial products.
History of 0x
0x was launched by Will Warren and Amir Bandeali in 2017. The two founders intended to provide a convenient way of trading any coin based on Ethereum, proceeding from the assumption that each asset, from traditional money and bonds to precious metals and digital goods, could have an Ethereum-based version.
Back then, Warren and Bandeali detected huge usability problems with crypto exchanges, which their project was intended to solve. The 0x protocol allowed Ethereum-based coins to be swapped over any decentralized exchange, substantially improving decentralized exchanges’ usability.
Since 0x’s launch, several projects have been based on the protocol, including DeFi Saver and Zerion.
The protocol’s token is ZRX. According to Coin Market Cap, as of August 2021, ZRX price was $0.98 with a market cap of $703,613,757. ZRX price hit an all-time high of $2.53 on Jan 09, 2018.
ZRX is used to pay the protocol’s trading fees. Proceeds from these fees are utilized to stimulate market maker liquidity.
ZRX can also be utilized for participation in the platform’s governance, giving a holder the right to vote on proposals that can be added to this protocol.
While 0x is an established player in the crypto space, it faces problems similar to most other projects in the DeFi space, such as inconsistent liquidity and slow confirmation times.
Matcha is 0x' search tool aimed to streamline the DEX trading process by finding the best prices across exchanges and combining them into one trade. Matcha utilizes the 0x API and 0x Mesh, the protocol’s peer-to-peer network for sharing 0x orders, to leverage aggregated liquidity and price information from Kyber, Uniswap, Oasis, and other sources.
The 0x protocol was founded by Will Warren and Amir Bandeali, who serve as CEO and CTO, respectively.
The team behind the project raised $24 mln in an ICO.
The project attracted funding from a group of venture capitalist firms, including Polychain Capital, Blockchain Capital and Pantera Capital, along with Chinese investment firms Jen Advisors and FBG Capital.
0x released v 2.0 of the protocol. Among new features were the 0x portal, non-fungible token support (ERC-721), increased order matching efficiency and a tool for liquidity pools where an asset address must meet specific demands that enable the enforcement and adherence to KYC/AML rules.
ZRX integrated Matcha, a service that finds the best prices across exchanges and combines them into one trade.
0x collaborated with Brave to power Brave Swap, enabling token trades directly from this Brave wallet.