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Since the beginning, our core thesis has been that all forms of value will end up tokenized on public blockchains. We set out to build 0x protocol because we believe that tokenization combined with global p2p markets will help to eliminate the geographic lottery and unlock latent human potential.

Three years on, the tokenization thesis is playing out more rapidly than we anticipated. Among the 250,000 token contracts on the Ethereum blockchain today there are $7.5B of tokenized US dollars, thousands of ICO tokens, real estate, video game items, community tokens, personal tokens, synthetic assets, derivatives, and so much more. We’re seeing a Cambrian explosion of innovation and creativity, and it’s only just getting started.

Looking to the future, we see a number of prime opportunities to catalyze growth within p2p markets, drive adoption of 0x protocol, and grow a successful business along the way. …


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The past year has been a whirlwind. This post highlights some of the 0x core team’s accomplishments in 2019 plus some commentary on the tectonic shifts taking place within the DEX landscape.

Before getting started, it is important to zoom out and review why all of this matters: today, an individual’s economic freedom and opportunity in life is largely determined by the geographic location in which they are born. Public blockchains present us with an opportunity to eliminate the geographic lottery by democratizing access to financial services in the same way the internet has democratized access to information. The 0x core team’s mission is to eliminate the geographic lottery by creating a tokenized world where all value can flow freely.

Widespread adoption of public blockchains will likely take at least one or two decades to play out, we are still in the formative years. …


📌 Final Update (07/13): We have patched and re-deployed the entire 0x smart contract pipeline from scratch, updated our developer tools and packages, 0x Instant, and 0x Launch Kit. As previously mentioned, we have confirmed that the vulnerability found in the 0x v2.0 Exchange contract was not exploited and no user funds have been lost. Please expect a formal post-mortem blog post in the next couple of days.


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Key points

  • We have published a draft for ZEIP-31, which proposes an upgrade to the 0x protocol to utilize new ZRX token economics.
  • Under the proposal, takers pay a small protocol fee on each 0x trade.
  • Market makers (MMs) receive a liquidity reward that is proportional to:
    — the protocol fees generated from their orders.
    — their stake of ZRX tokens.
  • MMs who do not own sufficient ZRX to collect liquidity rewards will be able to form a ZRX staking pool for third-party delegators.
  • Next steps: Community discussion. Implementation details finalized. Gauge sentiment. Smart contracts developed/audited. …


Vote on ZEIP23 with ZRX on February 18, 2019

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Update: ZEIP-23 has been approved and implemented on mainnet!

Key Points

  • MultiAssetProxy (MAP) is a smart contract that adds the ability to trade arbitrary bundles of ERC20 and ERC721 tokens via 0x protocol.
  • MAP development is complete, the code has passed a security audit, but integration requires a “hot upgrade” to 0x smart contracts, which needs community oversight.
  • As the final step in the ZEIP process, ZRX token holders will approve or reject the MAP integration via a token vote to begin February 18, 2019. If approved, the 0x version number will be bumped from v2.0 to v2.1.
  • A centralized upgrade mechanism will be used to trigger these types of integrations until it is safe to transition to a more advanced binding on-chain governance system. …


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Introduction

The 0x core team had an incredibly productive 2018. We shipped a number of products including 0x Instant, 0x Launch Kit, 0x Portal, and a brand revamp. We launched programs to grow the ecosystem from a variety of different angles, including the Ecosystem Acceleration Program which has funded a number of incredible builders, the Market Maker Program which is helping market makers bring liquidity to markets, and Coinbase Earn which is introducing crypto enthusiasts to 0x and the broader DeFi space. The team grew from 9 to 30 team members and we saw dozens of Ethereum projects integrate 0x protocol into decentralized applications.

Going into 2019, the core team’s objectives are to bring deep liquidity to relayers, build out our data infrastructure to gauge the impact of our work on different areas of the ecosystem, and to grow the DeFi pie by exposing users to the many projects building financial infrastructure on Ethereum. Our research team is pursuing innovations in market design, network economics, and the application of cutting edge cryptography for scaling.

We are planning to release a series of “0x Roadmap” posts that dig into some of the projects we will be working on in the next six or so months. This first post will specifically focus on our roadmap around 0x Improvement Proposals (ZEIPs). Due to the forward-looking nature of ZEIPs, this post will provide a cursory glance into some (but not all) of the other areas we are focusing on. …


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Today DDEX announced that they will be moving to Hydro protocol. We are disappointed to see them leave the 0x ecosystem. It can be challenging for crypto businesses to find an edge in the highly competitive DEX space and current crypto climate. The DDEX team have communicated that rolling their own contracts is yet another step in the never ending quest to establish an edge. While we understand their decision, we believe that modularity and standardization will lead to greater innovation over time.

0x protocol is designed to support a variety of relayer models including p2p trading, open orderbook, order matching, and beyond. Every model comes with tradeoffs around decentralization, security, and user experience. We acknowledge that there can be tension around how these tradeoffs are measured by different teams. We invite developers to use the protocol in new, creative ways and provide feedback on how we can better accommodate new use cases. Our monthly developer call, research forum, and Discord server are public and we welcome open dialogue regarding the 0x roadmap.

The DDEX team has communicated that Hydro protocol is intended to support pooling of liquidity between different matching relayers in a manner that is similar to R1 protocol. One of the benefits of the modular architecture offered by 0x v2.0 is that it makes it simple for developers to support this use case, among many others, with just a few lines of code. This capability is particularly exciting as it allows us to rapidly experiment with new extensions to 0x, including trade execution coordinators (TECs), which allow us to eliminate some of the tradeoffs associated with existing relayer models. TECs give guarantees around trade execution similar to order matchers, yet provide the flexibility of an open orderbook, which is needed for DeFi applications. Along with several other initiatives (stay tuned), we believe implementing a TEC model will allow us to build the most liquid DEX ecosystem in the next 6 months.

Regarding the ZRX token, it is important to review why the ZRX token exists in the first place. Our long-term goal is for ZRX to drive a governance process in which ecosystem participants securely execute protocol upgrades and manage a community treasury. Ultimately, the role of ZRX may evolve through community governance to adapt to changes in the greater crypto landscape. We recently presented at Devcon 4 on how we intend hand over control of the network to ZRX holders. DDEX migrating to their own protocol underscores the importance of governance and giving stakeholders a voice in how the 0x protocol evolves.

One of the 0x Team’s core values is to focus on long-term impact and we’ve been explicit about our philosophy that creating value for our ecosystem participants is more important than anything else. Our team is heads down building market making tools, a liquidity incentivization program, and products that will accelerate the growth of the ecosystem. …


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Start developing on 0x v2.0 + trade through 0x relayers at 0x.org/portal.

We are incredibly excited to announce that we have completed mainnet testing for 0x protocol v2.0! After over a year of development, and numerous rounds of internal and external security audits, we are confident that this new system of Ethereum smart contracts is one of the most highly vetted systems on the Ethereum blockchain.

The launch of v2.0 is an important milestone in 0x’s long-term mission of creating a tokenized world where value can flow freely. Version 1 enabled developers to create beautiful user experiences, tap into public pools of liquidity, reduce development time, and lower costs associated with trading. Version 2.0 brings further modularity and extensibility, allowing developers to address many new use cases. Over the past year, we have not only seen an explosion in the number of ERC20 tokens, we have also seen a growing set of new token standards such as ERC721 for non-fungible tokens (NFTs). 0x Protocol v2.0 addresses the needs of both developers and end users to access and exchange all types of new digital assets as they emerge.

Over the past year the 0x core team has not only been building, we have also been listening. To relayers, Solidity devs, UX designers, market makers, community members, dApp devs, and others. By gathering all of this feedback, we have been able to include features in 0x protocol v2.0 that will pleasantly surprise developers, bring a new wave of high-quality projects onto 0x, and set up the system for future upgrades and improvements through governance. …


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We’re thrilled to announce that David Sacks has joined the 0x core team’s advisory board. David was the early COO of PayPal, the founder and CEO of Yammer, and is now the General Partner and co-founder at Craft Ventures, which has invested in complementary projects in the crypto-token space including Harbor and Set protocol. David’s operational expertise, business acumen and focus in the tokenized securities space will accelerate the 0x team’s progress towards our mission of creating a tokenized world where all value can flow freely.

Tokenized securities are one of the upcoming waves of tokenized assets that we are particularly excited to see emerge. The tokenization of securities on public blockchains will not only reduce the costs associated with issuing securities and maintaining a balance sheet, but also increase the opportunity to access capital and unlock liquidity. …


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Since launching 0x version 1 in August 2017, the 0x core team has grown from six to fifteen team members (we’re still hiring). As our organization has grown, we’ve found that our mission and values have become increasingly important in keeping the team aligned not only in our efforts but also around the guiding principles we use to make decisions. …

About

Will Warren

Co-founder @0xProject. Previously research @LosAlamosNatLab, MechE @UCSanDiego.

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