What is 0x?
0x is an open protocol for peer-to-peer exchange of ERC-20 tokens on the Ethereum blockchain.
ZRX is used for
- Trading fees
Token holders stake their ZRX
- And earn liquidity rewards through market making and participating in governance over the protocol.
- One Staked ZRX equals one vote.
- Governance over the protocol is conducted by voting on ZEIPs (ZeroEx Improvement Proposals).
How 0x works
The 0x DEX is a set of smart contracts.
It uses a automated market maker and state channels for an off-chain order book with on-chain settlement.
0x transactions consists of 3 parties
- Makers – Submit trades
- Relayers – Manages the off-chain order book
- Takers – Fulfills trades via DEX smart contract
Trades are merely signed messages until they are transmitted on-chain by Takers.
A transaction on 0x
- User X choses to trade between token A and Token B.
- User X sets acceptable price and signs the transaction with their private key.
- User X broadcasts the transaction.
- User Y who holds Token B accepts the trade.
- User Y sends the transaction to the DEX.
- If price and messages are valid the DEX updates balances of user x and y for the tokens.
ZRX Token issuance
Total supply: 1,000,000,000 ZRX
What’s the story?
- Off-chain DEX