Hey guys :) I’m back with yet another comprehensive Q&A piece, this time for one of the most promising DEX protocolout there – 0x (ZRX).
0x is an open protocol that powers the peer-to-peer decentralized exchange of digital assets on the Ethereum blockchain. It’s building the exchange layer for the emerging crypto economy in a more efficient, transparent, and equitable manner than any financial system in the past.
Hope you enjoy!
The list of Q&A is kind of long so first comes the list of questions that I have prepared the answers to:
- What is the 0x Protocol?
- Who and When Created 0x?
- What is 0x Token ZRX Used for?
- What is 0x API?
- What are some notable 0x Relayers?
- Can You Stake 0x?
- Where to Store 0x ZRX?
- Where to Buy & Sell 0x ZRX?
1. What is the 0x Protocol?
0x website homepage
0x (pronounced zero-x) is an open-source protocol for the decentralized exchange of digital assets.
0x enables the peer-to-peer exchange of ERC-20 tokens on the Ethereum blockchain and can be used by anyone in the world to service a wide variety of markets including; cryptocurrencies, gaming items, financial instruments, and assets that could have never existed before.
The mission of 0x is to create a tokenized world where all value can flow freely on public blockchains. This includes fiat currencies, stocks, bonds, commodities, debt instruments, real estate, video game items, digital collectibles, software licenses, reputation, and much more.
The goal is to have these digital assets traded on the new global financial infrastructure powered by the 0x protocol and this goal/vision is already beginning to be realized today.
The 0x protocol is already working and has been deployed and integrated into more than 30 different projects where it has processed over 713K transactions with more than $750M in total volume.
That said, 0x is serving as an open standard and foundation in which decentralized applications (dapps) with exchange functionality are built on.
0x Protocol Offering
The 0x protocol offers developers and businesses with free, open-source infrastructure that can be utilized to build products that enable the decentralized purchasing and trading of cryptocurrencies.
The 0x protocol suite offers:
- Robust Smart Contracts - which have been put through two rounds of security audits
- Extensible Architecture - plug in any smart contracts through an extensible API
- Efficient Design - a gas efficient approach to p2p exchange, reducing blockchain bloat
- Support for all Ethereum Standards - ERC-20 and ERC-721 assets
- Networked Liquidity - tap into a shared pool of digital assets
- Flexible Integration - a modular system that allows easy exchange functionality
2. Who and When Created 0x?
0x founders - Will Warren and Amir Bandeali respectively
Neither Warren or Bandeali have a ton of technical experience prior to founding 0x. Warren is an engineer and self-proclaimed U.C.S.D. Ph.D. dropout and Bandeali is a former fixed-income trader who previously worked for a leading Over-The-Counter (OTC) cryptocurrency trading platform, DRW.
As for 0x’s other 30+ core team members, many of them have previously worked for notable companies including Google, Facebook, Instagram, Dropbox, LinkedIn, and Yelp among others.
Then we have 0x’s notable advisors which include: Joey Krug, co-CIO at Pantera Capital and founder of Augur, Olaf Carlson-Wee, founder of PolyChain Capital, Fred Ehrsam, co-founder of Coinbase, David Sacks, founding COO and product leader of PayPal, and Linda Xie, co-founder of Scalar Capital and Will Warren’s wife.
All in all, looking at 0x’s founders, core team, and notable advisors, it’s clear that the project was started and is backed by respectable individuals and should not be overlooked.
0x (ZRX) Launch and Distribution
ZRX token distribution (source)
The 0x (ZRX) initial coin offering took place between August 15 and 16, in which time the project collected $24 million worth of ETH in exchange for 50 million ZRX tokens (50% of the total supply).
As for the remaining 500 million ZRX tokens (50% of the total supply), their allocation is as follows:
- 15% to the 0x Organization
- 15% to an External Development Fund
- 10% to the Founding Team
- 10% to Early Backers and Advisors
That said, the total supply of 0x’s native cryptocurrency is 1,000,000,000 ZRX, and its circulating supply as of May 13, 2020, is 652,985,067 ZRX.
3. What is 0x Token ZRX Used for?
0x (ZRX) token logo
The 0x token ZRX is used for:
- 0x Protocol Governance - Vote on 0x Improvement Proposals (ZEIPs) using ZRX tokens
- Staking - Put your ZRX to work by staking with 0x market makers to earn rewards
- Trading/Investing - ZRX is a tradable digital asset and speculative crypto-investment
0x Protocol Governance
ZRX tokens can be used to vote on 0x Improvement Proposals (ZEIPs), which are various upgrades, changes, enhancements, features, etc. that can be implemented into the 0x protocol.
ZRX tokens and votes have a 1:1 ratio, so if you hold 1000 ZRX tokens you will have an equivalent 1,000 votes towards the outcome of whether a ZEIP is approved or rejected.
Voting can be done by simply connecting your ZRX wallet with the 0x Governance interface and placing your vote. Voting is free and the ZRX tokens never have to be locked up or deposited in a smart contract. Only the ZRX balance must remain the same, in the same wallet address that you originally voted with.
More info on the 0x protocol governance and voting can be found here.
ZRX token holders can put their tokens to work and earn passive income by staking with 0x market makers to earn liquidity rewards.
Currently, ZRX holders have 9 different staking pools to choose from and if you can’t decide which pool to stake with, you can simply use the staking wizard which will do the work for you by choosing the best pool with the most rewards.
When staking your ZRX, you can earn liquidity rewards in the form of 0x protocol fees that are paid out in ZRX to the liquidity pool. Also, the rewards are paid out in ZRX, but they are denominated in ETH.
Another popular use case for ZRX is trading and investing. ZRX is a highly liquid cryptocurrency that’s supported by many reputable cryptocurrency exchanges and has the most popular trading pairs (ie. BTC, ETH, USDT, and a variety of fiat currencies).
Additionally, the 0x protocol has the potential to become one of the most valuable protocols in the world once decentralized trading and tokenized assets become mainstream.
4. What is 0x API?
The 0x API is the easiest way to source on-chain liquidity from 0x Mesh as well as other on-chain liquidity sources such as Kyber, Uniswap, Oasis, Curve, and other decentralized exchange networks.
It enables DEXes to swap tokens at the best possible price with the lowest slippage possible, and it’s publicly accessible, open-source, and free to use so that any business, developer, or dapp can hook into the 0x protocol and facilitate decentralized trading with the best prices.
The 0x API has the following use cases:
- Swap Tokens with 0x API - Complete a token swap with 0x API using web3
- Use 0x API Liquidity in Your Smart Contracts - Complete a token swap in your smart contracts with 0x API
- Margin trading with 0x API - Create a margin trading DeFi product using 0x API
5. What are some notable 0x Relayers?
The most notable 0x Relayers are:
Radar Relay dashboard
Powered by 0x, Radar Relay is a simple and secure wallet-to-wallet trading platform with the best prices in DeFi. It utilizes the 0x API to source liquidity from multiple sources and provides its users with the best prices for buying and selling Ethereum and ERC-20 tokens.
With Radar Relay, there are no sign-ups or deposits to trade. Users securely trade directly from their compatible Ethereum wallet, whether its hardware, software, mobile, or desktop.
Tokenlon, also powered by 0x, is a smart contract-based decentralized trading platform offering its users a secure, reliable, and seamless token-to-token mobile trading experience. Tokenlon benefits from off-chain matching, on-chain settlement, and instant swap trading.
DeversiFi offers one of the most advanced and complete decentralized trading experiences.
The platform features lightning-fast order matching powered by 0x, more than 30 highly liquid markets, real-time order management, many fee discount options, no signup or registration, and trading directly from your favorite crypto wallet.
6. Can You Stake 0x?
ZRX staking explainer video
Yes, you can stake the 0x (ZRX) token to earn liquidity rewards.
In the 0x protocol, market makers (liquidity providers) are entitled to receive rewards in exchange for their activity, which is crucial for the good functioning of 0x markets. But to receive their rewards, they need to stake ZRX tokens.
That said, these liquidity providers create staking pools and stake their own ZRX as well as attract others to their pool by sharing a portion of their rewards if they stake ZRX. By allowing other stakeholders to stake with them, they increase their ability to earn rewards.
ZRX staking can be done by connecting your MetaMask or Coinbase Wallet App to the ZRX staking interface (these are the only two wallets currently supported for ZRX staking). Once connected, select one of 9 staking pools to join or simply use the staking wizard which will do the work for you by choosing the best pool with the most rewards.
ZRX staking rewards will be distributed to each staker at the end of each epoch (which is a recurring period of 10 days).
7. Where to Store 0x ZRX?
0x (ZRX) is an ERC-20 token operating on the public Ethereum blockchain which allows it to be stored in a wide variety of reputable cryptocurrency wallets. That said, ZRX can be stored in any cryptocurrency wallet with ERC-20 token support.
However, not every ZRX-supported wallet supports ZRX staking. As of May 2020, there are only two wallets that enable ZRX token holders to stake:
- MetaMask (web-extension, can be used with hardware wallets Ledger or Trezor)
- Coinbase Wallet App (mobile)
Most Popular 0x (ZRX) Crypto Wallets:
- MyEtherWallet (MEW) (Web Wallet)
- MyCrypto (Web Wallet)
- Ledger Nano S (Hardware Wallet)
- Trust Wallet (Mobile Wallet)
- Atomic (Desktop Wallet)
8. Where to Buy & Sell 0x ZRX?
0x (ZRX) can be bought and sold on a peer-to-peer (P2P) basis but the most popular way to buy, sell, or trade 0x is through cryptocurrency exchanges.
You can buy ZRX with cryptocurrency or fiat at the following top exchanges. In most cases, you will have to fund your account with fiat, buy Bitcoin or Ethereum, and then use BTC or ETH to buy 0x (symbol ZRX).
- Binance - BTC, ETH, BNB, USDT, USD
- Coinbase Pro- BTC, USD, EUR
- Bitfinex - BTC, ETH, USD
- Huobi Global - BTC, ETH, USDT, USD
- OKEx - BTC, ETH, USDT
In addition to the exchanges listed above, 0x (ZRX) is also traded on a wide array of other exchanges and platforms that enable people to buy, sell, or trade cryptocurrencies.
Hope you enjoyed that read :) Let me know if I have missed something in the comments