Continuing on the theme of decentralized exchanges, today I’m writing about Project 0x, one I’ve written about in the past.
My other posts on decentralized exchange plays include Komodo, Blocknet, Binance Loopring and KyberNetwork.
It’s an open, permissionless protocol allowing for ERC20 tokens to be traded on the Ethereum blockchain.
Developers can use 0x as a platform to build exchange applications on top of.
For users, 0x is a secure trustless way to swap tokens using various Ethereum applications. 0x will work in the background.
The 0x protocol is free to use. Relayers host off-chain order books and get paid in ZRX. The ZRX token is used for these fees and for governance of the 0x protocol (which will be done through voting).
There’s a total of 1 billion ZRX tokens with half in circulation right now.
They raised $24 million in the ICO on August 15, 2017. ETH was trading around $290 so they raised about 82,750 ETH.
Half the supply was distributed with the remaining half broken up as follows: 15% retained by 0x for next 5 years of operations; 10% for external development fund; 10% for founding team; and 15% for early backers and advisors. Tokens for founders and advisors vest over four years at 25% per year.
I like that the project has some high quality advisors in Olaf Carlson-Wee and Fred Ersham. Plus, lots of projects are already building with the 0x protocol.
So Project 0x will be a decentralized exchange that matches orders off-chain and settles on-chain. Also, by using the relayers and a standard API, liquidity can easily be pooled.
Another plus is that dApps can use 0x as a protocol to build on top of. So a prediction market, like Augur, may use the 0x protocol. Then you can use whatever ERC20 token you want on Augur even though all contracts are in ether.
The one thing to be aware of is that Project 0x is still in development. They’re still figuring out how the governance will work. And the mainnet is not expected to be released until the second quarter of 2018.
What do you think of Project 0x?