0x

What is 0x (ZRX)?

ZRX – native governance token For 0x DeFi protocol. 0x operates as a network of decentralized exchanges (DEX) and liquidity aggregator for numerous blockchains, including Avalanche, Ethereum and Polygon. It was built on Ethereum (ETH) blockchain, and ZRX is an ERC-20 token.

The 0x protocol offers a range of standard DeFi services, including decentralized order books, and facilitates peer-to-peer on-chain transactions. The platform uses off-chain relays to record transaction order books. 0x is also known for hosting the global liquidity search engine Matcha.

Who founded 0x?

Crypto protocol 0x was co-founders Will Warren and Amir Bandeali. Warren is the CEO of 0x, who previously worked on another cryptocurrency project, Basic Attention Token (BAT). Bandeyali was previously a professional trader. He previously served as CTO of 0x Labs. Since September 2020, Bandeli has been co-CEO.

The 0x Labs project started in 2016. His goal was make the process of trading ERC-20 assets fast, secure and accessible to all blockchain users. The protocol implements a unique off-chain order logging mechanic to solve some of the scalability and network load issues faced by the Ethereum blockchain.

In August 2017, the team conducted an initial coin offering (ICO). Half of all governance tokens were sold during this event. The value of 0x received during the ICO was estimated at $24 million. The value can be compared with today’s index in the chart above.

The token showed rapid growth in the first few days after the ICO. The price of ZRX more than doubled from $0.20 to almost $0.50 by August 19th. 0x was a volatile asset with frequent fluctuations. During the first year after launch, the cryptocurrency recorded several significant peaks, with the highest price of 0x recorded in January 2018 at $2.53.

How does 0x work?

The maximum supply of the 0x token is 1,000,000,000 ZRX. The maximum stock cannot be changed. This means that the asset is deflationary and the price of 0x is expected to rise in the future as supply becomes more scarce. 50% of tokens were purchased by investors during the ICO.

The remaining 0x coins were distributed between the team, sponsors and the developer fund. It is planned that these assets will be gradually released over four years to ensure transparency and fair distribution.

0x was built on the Ethereum blockchain and supports ERC-20 token trading. 0x provides three key DeFi services:

• 0x API
• 0x grid
• Matcha

0x API this is a platform token exchange. It takes data from multiple decentralized exchanges and aggregates liquidity using the requested sources. According to the protocol, this guarantees traders access to optimal market prices.

0x grid functions as auto order book for peer-to-peer token trading. Although 0x provides data and transaction resources, the protocol does not act as an intermediary and all transactions are conducted directly between traders.

Matcha is described as the protocol’s global liquidity search engine and functions as protocol aggregator. It brings together a wide range of decentralized exchanges into an easy-to-navigate network, ensuring traders have access to the best prices.

The network uses a decentralized relay system to facilitate transactions. These relays are located off-chain to reduce the amount of data written to the network. You can pay for repeater services at the ZRX tariff. Relay nodes are also rewarded with 0x tokens for their contribution.

All traders on 0x behave as market makers and market takers.. Market makers use their digital signatures to create hashed-protected orders. The order is then sent out via relay for market participants to find and select. Once the order is completed, the network verifies that all conditions are met and the token exchange is officially registered.

The orders themselves are not stored on-chain to reduce data load. Only settlements are recorded on the blockchain, and transactions are carried out off-chain. The relay may reject the order if the required conditions are not met. In this case, the transaction is not recorded on the chain.

Making off-chain transactions easier helps improve network speed. By reducing the amount of data recorded on the blockchain, 0x can process more transactions without experiencing network congestion. Additionally, the platform offers lower gas fees. However, commissions are not available at the ZRX price since it is used for management.

As of 2022 also 0x supports the sale and trading of ERC-721 non-fungible tokens (NFTs).. The decision to add NFT support was made by a leadership vote. To facilitate this, several new integrations have been added to the protocol, including:

• Atomic0 and Cryptodate – NFT trading platforms;
• CherryTrader – NFT swap;
• The reservoir is an aggregated NFT liquidity provider.

0x is decentralized autonomous organization (DAO). This means that any changes to the protocol can only happen if the 0x community agrees to them through a leadership vote. The platform uses ZRX as its governance token.

0xDAO members can submit their own proposals for changes to the protocol and participate in the voting process. The voting rights a user has depends on how many tokens they have. Thus, the price of 0x may affect the ability to retain more or fewer votes in governance decisions.

0x token holders can put your assets on the line in any of the available betting pools. Depending on the price of the 0x bet and its duration, users have the right earn rewards in ETH. Pledged assets are delegated to market makers, while stakeholders retain voting rights over these tokens.