0x Protocol (ZRX)

0x Protocol is a decentralized protocol that facilitates the peer-to-peer exchange of assets on the Ethereum blockchain. It was founded by Will Warren and Amir Bandeali in 2017.

Overview of 0x Protocol

0x is a permissionless liquidity protocol on Ethereum, designed for creating decentralized exchanges, connecting liquidity providers, and incentivizing market makers to enhance DeFi asset trading. The protocol supports exchanges for ERC-20, ERC-721, and other Ethereum token standards. It functions through a standard messaging format and smart contracts, enabling entities to exchange digital assets. Relayers act as order aggregators, broadcasting orders to marketplaces.

In January 2021, the 0x team launched the v4 update, aiming to reduce gas costs by 70% and introducing customizable modules for atomic operations.

Contract Addresses
Ticker	ZRX
Category	Decentralized Exchange (DEX)
Website	https://www.0xprotocol.org/
Twitter	@zeroexprotocol
Telegram	official_0x
Reddit	https://www.reddit.com/r/0xProject/
ethereum	0xe4...98Copied!
harmony-shard-0	0x81...35Copied!
avalanche	0x59...d2Copied!
energi	0x59...7eCopied!

Products offered by 0x

0x API

The 0x API comprises services and endpoints providing interfaces to 0x liquidity and staking data. It sources liquidity from 0x Mesh and on-chain sources like Kyber Network, Uniswap, and others, creating orders for on-chain settlement without needing an API key.

0x Mesh

0x Mesh is a peer-to-peer network for order sharing, enhancing order book depth and user experience. It supports various users, including relayers, market makers, and serverless relayers.

Matcha

Launched in June 2020, Matcha is a decentralized exchange that aggregates liquidity from multiple sources. It offers smart order routing for optimal trade prices and focuses on educating users about tokens through detailed asset pages.

ZRX Token

The 0x protocol is powered by the ZRX token, an ERC-20 utility token. Relayers hosting order books receive ZRX as trading fees. ZRX also facilitates governance, allowing holders to suggest and vote on protocol changes. A token sale in August 2017 raised $24 million, with tokens allocated for various purposes, including operational expenses and a developer fund.

In 2019, an overhaul allowed ZRX holders to delegate their stake to market makers for rewards while maintaining voting rights.

0x Protocol v4 Update

Released on February 16, 2021, the 0x Protocol v4 update improves decentralized trading efficiency and security. It involves smart contract functions for order verification and decentralized governance for safe protocol updates.

Relayers and fee negotiation

Relayers maintain off-chain order books and receive transaction fees. Makers create orders with fees, which are published and filled via smart contracts on Ethereum, allowing flexible fee negotiation.

Smart contract functions

The protocol’s Ethereum smart contract verifies signatures to ensure transaction integrity. Orders can be partially filled, with references stored to prevent duplication.

Decentralized governance and continuous updates

Decentralized governance allows seamless updates without disrupting existing dApps. Protocol tokens enable fee payments and governance participation.

Token registry and ERC20 standards

An on-chain registry stores metadata for ERC-20 tokens, simplifying contract address verification and exchange rate checks. The protocol remains compatible with ERC-20 tokens.

New Matcha DEX Aggregator

The latest version of Matcha, launched on May 17, 2023, enhances user experience with features like “Matcha Auto” to improve transaction inclusion and cross-chain swap functionality across multiple blockchains.

Gasless API

Introduced in January 2024, the Gasless API removes the need for direct gas fee management, extending the 0x Swap API’s functionality. It addresses DeFi complexities by incorporating gas fees into transactions, improving transaction success and user engagement.

Reducing complexity in decentralized finance

The Gasless API facilitates gasless swaps, eliminating the need for maintaining native token balances for gas fees. Gas fees are included in the transaction, settled in the traded token.

Features of the Gasless API

Simplified Processes: Streamlines use by removing separate gas fee management.
Optimized Transaction Speed: Dynamically adjusts gas fees for quick processing.
Enhanced Transaction Reliability: Simulates transactions to prevent issues.
Access to Liquidity: Connects to over 100 AMMs, achieving optimal trade prices.
Developer Integration: Easy integration with technical resources.

Compatibility and usage

Available on multiple blockchains, the Gasless API can be paired with the 0x Swap API for additional trading options. It is integrated by platforms like Robinhood and Coinbase.

0x Protocol's Pricing Engine: v2

Launched in July 2024, 0x v2 is an updated pricing engine for on-chain applications, focusing on optimized trade execution and liquidity access. It features advanced routing, gas cost management, and security protocols.

Features and functionality

Advanced Routing Mechanism: Utilizes multiplexing and multihop routing for efficient trade execution.
Gas Cost Management: Aligns quoted prices with actual gas fees, reducing failures.
Security Protocols: Employs standards to address risks, with continuous security assessments.
Monetization Tools: Manages monetization processes for predictable financial management.

Additional functionalities

Integration of Liquidity Sources: Supports new liquidity sources for evolving environments.
Fee-on-Transfer Token Handling: Trades tokens with embedded fees.
Error Handling Improvements: Enhances error validation for development efficiency.

0x v2 Bug Bounty Program

Initiated in July 2024 with Immunefi, the bug bounty program offers rewards up to $1 million for identifying critical bugs. It aims to enhance the security of the 0x v2 architecture.

Team

Will Warren — Co-founder & Co-CEO
Amir Bandeali — Co-founder & Co-CEO
Alex Xu — Chief of Staff
Ben Burns — Designer
Brandon Millman — Engineering Manager
Jacob Evans — Senior Engineer
Greg Hysen — Engineering Manager, Protocol
Blake Henderson — Product Manager
Zack Skelly — Head of Talent
Remco Bloemen — Technical Fellow
Chris Kalani — GM, Matcha
Peter Zeitz — Research Fellow
Clay Robbins — Ecosystem Development Lead
Eugene Aumson — Senior Engineer
Jason Somensatto — Senior Counsel
Steve Klebanoff — Senior Engineer
Xianny Ng — Engineer
Brent Oshiro — Community Engagement Lead
Daniel Pyrathon — Senior Engineer
Lawrence Forman — Senior Protocol Engineer
Paul Vienhage — Research Engineer
Rui Zhang — Corporate Counsel
Mason Liang — Research Engineer
Patryk Adaś — Designer
Alex Kroeger — Data Scientist
Theo Gonella — Product Manager
Alex Towle — Protocol Engineer
Oskar Paolini — DevOps Engineer
Michael Zhu — Protocol Engineer
Fulvia Morales — Product Manager
Kim Persson — Engineer
John Johnson — Senior Engineer
Nicole Setter — Workplace Experience Specialist
Max Torres — Finance Lead

Advisors

Fred Ehrsam, Paradigm
Olaf Carlson-Wee, Polychain Capital
Joey Krug, Pantera Capital, Augur
Linda Xie, Scalar Capital
David O. Sacks, Craft Ventures