Term: 0x Protocol
Pronunciation: “zero-ex protocol”
Type: Open-source protocol | Decentralized exchange infrastructure
Launched: August 2017
Developed by: 0x Labs
Definition
0x Protocol is an open-source, decentralized exchange protocol built on the Ethereum blockchain that enables peer-to-peer trading of ERC-20 tokens and other Ethereum-based assets. It provides the foundational infrastructure for building decentralized exchanges (DEXs) and marketplaces by combining off-chain order relay with on-chain settlement.
Key Features
- Off-chain Order Book, On-chain Settlement: Orders are signed off-chain and only submitted to the blockchain upon execution, reducing gas costs and improving speed.
- Relayers: Third-party entities that host off-chain order books and facilitate order discovery, earning fees for their service.
- ZRX Token: The native token of the protocol used for governance and paying trading fees.
- Modular Architecture: Developers can integrate 0x components (such as smart contracts, APIs, and SDKs) into wallets, DEXs, or other DeFi platforms.
Use Cases
- Building decentralized exchanges (e.g., Matcha by 0x Labs)
- Creating NFT marketplaces with permissionless trading
- Integrating liquidity aggregation into wallets and DeFi platforms
- Enabling trustless over-the-counter (OTC) trading
Advantages
- Gas efficiency: By handling order matching off-chain
- Interoperability: Compatible with all ERC-20 and ERC-721 tokens
- Governance: Community-driven upgrades and decision-making via ZRX token holders
- Security: Smart contracts are audited and battle-tested
Notable Integrations
- Matcha (DEX aggregator)
- Metamask
- Coinbase Wallet
- DeFi Saver
Official Links
Note: This post is for informational purposes only and does not constitute financial advice.