0x Decentralized Exchange Infrastructure Explained

0x is an open protocol for decentralized exchanges, allowing for the creation of a decentralized exchange infrastructure.

This infrastructure enables the creation of decentralized exchanges (DEXs) without the need for a centralized authority.

A DEX is a platform that allows users to trade cryptocurrencies directly with each other, without the need for an intermediary.

The 0x protocol is built on top of the Ethereum blockchain and uses a token called ZRX to facilitate trades.

The 0x protocol is designed to be decentralized, meaning that no single entity has control over the infrastructure.

This is achieved through the use of smart contracts, which are self-executing contracts with the terms of the agreement written directly into lines of code.

The 0x protocol uses a decentralized network of relayers to facilitate trades, which helps to increase the liquidity of the platform.

Relayers are essentially middlemen that help to match buyers and sellers on the platform.

By using a decentralized network of relayers, the 0x protocol is able to provide a more secure and efficient trading experience for users.

0x is a developer's one-stop shop to build financial products on crypto rails.

0x provides a suite of APIs that enable developers to build faster, find the best prices, and create superior UX for their customers.

Over 71 million transactions have been processed using 0x's APIs, with a total volume of $148B+ from more than 8 million users.

Many top trading apps, including Coinbase Wallet, Robinhood Wallet, and Metamask, use 0x's APIs.

0x's protocols facilitate the peer-to-peer exchange of Ethereum-based assets, serving as an open standard and core DeFi building block for any developer needing exchange functionality.

0x offers secure, audited smart contracts, developer tools tailored to the 0x ecosystem, and an API that provides easy access to aggregated liquidity sourced from a growing number of exchange networks.

The 0x protocol has a fascinating history. It was created to facilitate low-friction peer-to-peer exchange of ERC20 tokens on the Ethereum blockchain.

The protocol's initial coin offering (ICO) in August 2017 was a huge success, selling half of the total supply of 500M ZRX tokens in just over 24 hours and raising a total of $24M.

This significant fundraising event helped establish 0x as a major player in the decentralized exchange space.

ZRX was also the first Ethereum ERC-20 token to begin trading on the US-based cryptocurrency exchange Coinbase on October 11, 2018.

In 2020, 0x announced the formation of 0x Labs, signaling a shift in the project's governance structure and paving the way for continued growth and innovation.

The ZRX token has also gained recognition from prominent cryptocurrency investors, including Bitwise, which included it in their DeFi Crypto Index Fund in February 2021.

The 0x protocol has a rich history that's worth exploring. It was created to facilitate low-friction peer-to-peer exchange of ERC20 tokens on the Ethereum blockchain. The protocol is designed to be an open standard and common building block for decentralized applications (dApps) that incorporate exchange functionality.

In 2017, the project conducted an initial coin offering (ICO) on August 15, where it sold half of the total supply (500M) of its ZRX token in just over 24 hours, raising a total of $24M. This was a significant milestone for the project.

The ZRX token began trading on the US-based cryptocurrency exchange Coinbase on October 11, 2018, marking a major breakthrough for the project. This made ZRX the first Ethereum ERC-20 token to trade on Coinbase.

On June 22, 2020, 0x announced the formation of 0x Labs, signaling a new chapter for the project. The organization stated that as they continue to decentralize control of the 0x protocol, the platform will take on an identity of its own and their organization will transition into one of the many productive stakeholders moving the ecosystem forward.

In 2021, Bitwise, the creator and manager of the world's largest crypto index fund, included the ZRX token among its portfolio of cryptoassets for their DeFi Crypto Index Fund.

Tap into a decade of onchain expertise, which has led to powerful insights and innovative solutions. 0x Trade Analytics API is a key tool for unlocking these insights.

Fundamentals: Intents is a crucial aspect of onchain expertise, allowing for a deeper understanding of user behavior and preferences. Intents can be used to create personalized experiences and improve user engagement.

0x's next-gen pricing engine is now live, providing a more accurate and efficient way to calculate prices. This has a significant impact on the balance sheet, making it easier to manage assets and liabilities.

Permit2 eliminates allowance risk, which is a major concern for traders and investors. By using Permit2, users can avoid unexpected changes in their balances and maintain control over their assets.

Frame spotlight: Paycaster is a notable example of a company that has successfully integrated 0x's technology into its platform. Paycaster's users can take advantage of fast and secure transactions, thanks to 0x's Swap API.

Introducing gasless swaps and approvals with Gasless API, which has revolutionized the way people trade and interact with decentralized applications. This technology is now being used by Matcha to provide users with the most frictionless trading experience in DeFi.

0x Swap API is now live on Base, providing users with access to a wide range of liquidity sources and improving the overall trading experience.

The 0x protocol is a decentralized exchange infrastructure that allows for trustless and permissionless trading of ERC-20 tokens.

One of the key benefits of 0x is its ability to enable decentralized trading on any blockchain, not just Ethereum.

Decentralized exchanges (DEXs) built on 0x can handle a high volume of transactions per second, making it a scalable solution for trading.

0x's decentralized architecture also makes it resistant to censorship and allows for true peer-to-peer trading.

The 0x protocol is open-source, which means that developers can build upon and contribute to the codebase, further enhancing its functionality.

One of the most notable features of 0x is its use of a standardized interface for accessing liquidity, known as the 0x API.

This standardized interface allows developers to easily integrate 0x into their applications and connect to various liquidity pools.

The 0x API also enables developers to create custom trading protocols and interfaces, giving them the flexibility to tailor the trading experience to their users' needs.

The decentralized nature of 0x also means that there is no single point of failure, making it a highly reliable solution for trading.

0x's infrastructure is built with security in mind, ensuring that your business can thrive with confidence. With 99.99% uptime, you can rely on their services to keep your operations running smoothly.

Their system is designed to withstand potential vulnerabilities, thanks to multiple third-party audits that help identify and fix any weaknesses. This level of attention to security gives you peace of mind and helps protect your users' assets.

Built with security as a top priority, 0x's infrastructure is the perfect foundation for your business to grow and succeed.

Our service is built with security in mind, with a focus on enterprise-grade reliability that lets you build your business on solid ground. With 99.99% uptime, you can trust that your operations will run smoothly and efficiently.

Multiple third-party audits are conducted to ensure there are no vulnerabilities to exploit, giving you peace of mind and confidence in our system's integrity.

ZRX staking is a unique way to earn additional income on your initial investment. By staking your ZRX tokens on the 0x website, you can lend them to a pool that provides liquidity to decentralized exchanges.

You can choose which pool you'd like to lend to and which decentralized exchanges utilizing 0x you'll be providing liquidity to. This allows you to have some control over where your tokens are being used.

Staking your ZRX tokens also earns you a split percentage of the fees earned by trades made on the 0x ecosystem. Rewards to stakers are paid weekly with ETH and are proportional to both the percentage of the pool the user owns and the percentage of total 0x trades the exchanges in the pool have facilitated.

Currently, more than 62.95 million dollars worth of ZRX tokens are being staked in 0x protocol liquidity pools. This is a significant amount of liquidity being provided to the decentralized exchanges that use the 0x protocol.

One unique thing about staking with ZRX is that rewards are dynamic, rising and falling according to the volume of trades across the exchanges that your pool provides liquidity for. This means that choosing the right pool is crucial to maximizing your returns.

Developer Resources are plentiful at 0x, making it easy for developers to get started. You can find guides on building with the Swap API, including a full example of an ERC-20 swap app built on Next.js.

The 0x Dev Digest series offers insights into the latest developments at 0x. Check out the archives for previous editions, including May 2024, April 2024, and October 2023.

You can also find code examples to copy and paste into your own projects, as well as guides on monetizing your app using the 0x Swap API. The Swap API and Gasless API are both supported on various testnets.

To stay up-to-date with the latest news from 0x, follow them on Twitter/X, Warpcast, GitHub, or Reddit.