Popular science: understand the ecology of the 0x protocol
Editor's Note: This article comes fromEthereum enthusiasts (ID: ethfans)Ethereum enthusiasts (ID: ethfans)
, Author: Brent Oshiro, translation & proofreading: Min Min & A Jian, reprinted with authorization by Odaily.
What an amazing journey it has been! 🚀Early users of 0x may remember what the decentralized exchange ecosystem was like in the past-EtherDelta has not yet been widely adopted, automated market makers have just been born, and "DeFi" is just Blake (0x Labs), Inje ( Set Protocol) and Brendan (Dharma) had a fledgling concept.
The 0x ecology at that time was also very different from what it is now. Most integrated open order book UIs look and function much the same. Integration needs to overcome high technical barriers, and it needs to artificially disperse liquidity between different platforms. Despite the early friction, 0x still had a combined transaction volume of $1 billion between 2017 and 2019.
Today, 0x remains the most versatile and robust decentralized exchange protocol. At present, we also provide a professional-level decentralized exchange aggregation API, which is convenient for developers to integrate transaction functions into wallets and DeFi applications, and promote liquidity sharing among different platforms in the network. Just like Expedia and Kayak help travelers find the lowest prices on the entire network, our API can aggregate the liquidity of popular DeFi projects on 0x to provide the best prices for all aggregators and their users.
In 2020, we saw a flood of new API integrations emerge. Targeting different use cases, these APIs drive a combined transaction volume on the 0x protocol of over $8 billion. In January 2021 alone, the transaction volume on 0x reached $5.7 billion.
While the thriving 0x ecosystem and massive transaction volume growth is exciting, it’s important to know that we’re still early in the DeFi adoption curve.
In the next 10 years, we will continue to see more and more asset classes being tokenized and traded on 0x, whether they are assets on Ethereum or other blockchains.
As DeFi continues to flourish, the 0x ecosystem will also take off, because more and more companies will choose to build on the 0x protocol (among similar decentralized exchange protocols, 0x has the best experience and market maker tools Most advanced). With the launch of 0x 4.0 version (the most powerful update to date), 0x is more and more in line with its positioning as a liquidity endpoint in the DeFi space.
🛠️ Interested in building on the 0x protocol and joining our ecosystem?
Please read our developer documentation first.
📈 Interested in becoming a market maker on 0x and earning liquidity rewards?
Please read our Request for Quote (RFQ) document first.
🔍 Interested in learning about 0x growth?
Please visit and bookmark our 0x Tracker. Through this public tool, you can explore the growth of the network and transaction activity on the 0x protocol.
User Guide - Take you through the 0x protocol
📍0x protocol is the core DeFi building block and open standard, which can provide developers with flexible trading functions and bring both breadth and depth of liquidity to decentralized applications. The protocol provides secure and audited smart contracts, a professional-grade API and a complete set of developer tools and documentation.
📍0x API is a professional decentralized exchange aggregation API, which allows developers to easily integrate trading functions into wallets and DeFi applications, such as Matcha, DeFi Saver, MetaMask, Zapper and ShapeShift, etc., while enjoying the best price.
📍Supply refers to the liquidity in the 0x ecosystem from different market makers, automated market makers, and other on-chain decentralized exchange protocols. We refer to people who create 0x orders as "order makers". On-chain order books work similarly to those in the traditional financial industry. All buyers and sellers in the network have access to the full order book at each price point. Automated Market Makers (AMMs) provide liquidity to the network through permissionless liquidity pools that employ automated logic. 📍Demand refers to all DeFi applications and their users that consume liquidity in the network. We refer to people who complete 0x orders as "takers". Exchanges are web and mobile applications that allow users to buy one cryptocurrency with another. Options and derivatives platforms can give users the right to buy or sell an underlying asset at an agreed price. Wallets allow users to deposit tokens and transfer funds. Wallets such as MetaMask and imToken allow users to trade tokens directly in the user interface. Portfolio managers can provide users with a convenient way to create and manage DeFi asset portfolios. Such applications usually provide additional functions, such as direct token trading, automatic guaranteed debt position (CDP) liquidation protection, liquidity mining, etc. Investment Strategies is an application that provides users with a variety of active and passive investment strategies, such as creating and trading asset baskets, earning the best lending yield, and social trading. Prediction markets are decentralized platforms for trading outcomes of various events such as sports, politics, entertainment, and economics. Event outcomes are represented in freely tradable tokens. Non-Fungible Tokens (NFTs) are a special type of cryptographic currency used to represent something unique. On the Ethereum blockchain, such tokens follow the ERC-721 or ERC-1155 standard. 0x supports both types of token standards.
📍ZRX Portal is a web interface for token holders to participate in decentralized protocol governance and earn liquidity rewards (ETH) by staking ZRX tokens.
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