0x

About

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.

ZRX token

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.

User concerns

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

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.