0x (ZRX) is an open-source protocol designed to enable seamless peer-to-peer exchange of digital assets on the Ethereum blockchain. With a vision of a fully tokenized economy, 0x aims to transform how value is transferred—making traditionally illiquid assets like real estate, art, or even stocks instantly tradable through blockchain technology.
Imagine selling a house without lawyers, escrow agents, or title companies. With 0x, property ownership can be tokenized and transferred via smart contracts, cutting out intermediaries and reducing transaction time and cost. This isn’t science fiction—it’s the future 0x is actively building.
Built on Ethereum, 0x provides a standardized infrastructure for decentralized exchanges (DEXs), marketplaces, DeFi platforms, and more. Developers can use the 0x Launch Kit to create their own DEXs, monetize trading fees, and tap into shared liquidity pools—all without reinventing the wheel.
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How Does 0x Work?
At its core, 0x leverages smart contracts—self-executing agreements coded on Ethereum—to facilitate secure, trustless asset swaps. However, unlike traditional DEXs that process every action (order creation, cancellation, fill) directly on-chain—resulting in high gas fees—0x uses a hybrid model: off-chain order relaying with on-chain settlement.
Here’s how it works:
- A user creates a trade order off-chain.
- The order is broadcast through a relayer—a service acting as a decentralized order book or bulletin board.
- Another user discovers the order and chooses to fulfill it by submitting their cryptographic signature to the 0x smart contract.
- Only the final settlement occurs on the Ethereum blockchain, minimizing gas costs and network congestion.
This system allows for faster, cheaper trades while maintaining decentralization and security. Additionally, 0x supports point-to-point orders, where trades are sent directly to specific users via email or messaging apps—ideal for private OTC deals.
Why This Matters for Users and Builders
- Lower fees: By moving most operations off-chain, users avoid constant gas charges.
- Faster execution: Orders propagate quickly across relayers without waiting for block confirmations.
- Greater flexibility: Supports both public marketplaces and private trading channels.
- Interoperability: Any dApp can integrate 0x to add exchange functionality.
The protocol also powers the 0x API, which aggregates liquidity from multiple sources—including Uniswap, Curve, Balancer, and others—to ensure users always get the best available price when swapping tokens.
Who Founded 0x? The Story Behind ZRX
0x was co-founded in 2016 by Will Warren (CEO) and Amir Bandeali (CTO), both bringing strong technical and financial backgrounds to the project.
- Will Warren holds a degree in Mechanical Engineering from UC San Diego. Before launching 0x, he worked as a Technical Advisor for Basic Attention Token (BAT) and won first place at the Consensus 2017 Proof-of-Work Pitch Competition.
- Amir Bandeali studied Finance at the University of Illinois and gained experience as a trading specialist at firms like Chopper Trading and DRW.
Based in San Francisco, the 0x team has grown to include over 30 core members and notable advisors such as Fred Ehrsam (Coinbase co-founder) and Joey Krug (Pantera Capital co-CIO).
In August 2017, 0x conducted its Initial Coin Offering (ICO), raising $24 million in just 24 hours—a testament to early investor confidence. The ZRX token sale was capped per participant to promote broad distribution, resulting in tokens spread across more than 13,000 Ethereum addresses.
What Makes 0x Unique?
While many decentralized exchanges exist, 0x stands out due to several key innovations:
- Hybrid architecture: Off-chain order relay + on-chain settlement reduces costs and congestion.
- Multi-use protocol: Beyond DEXs, it powers NFT marketplaces, portfolio managers, derivatives platforms, and DeFi integrations.
- Supports multiple token standards: Unlike many protocols limited to ERC-20 tokens, 0x natively supports both ERC-20 (fungible) and ERC-721 (non-fungible) tokens—making it ideal for NFT trading.
👉 See how leading DeFi platforms leverage open protocols for innovation.
What Gives ZRX Value?
ZRX is the native utility and governance token of the 0x ecosystem. Its value stems from two primary functions:
- Governance: ZRX holders can vote on protocol upgrades, fee models, and treasury allocations—giving them direct influence over 0x’s future.
- Relayer incentives: Relayers earn fees from traders using their order books and must stake ZRX to qualify for these rewards.
Additionally:
- ZRX has a capped max supply of 1 billion tokens, introducing scarcity.
- 50% of total supply was sold during the 2017 ICO.
- 10% reserved for founders, 10% for early backers/advisors, and 15% allocated to development funds.
This controlled distribution supports long-term economic sustainability.
How Many ZRX Tokens Are in Circulation?
As of now:
- Circulating supply: ~450 million ZRX
- Maximum supply: 1 billion ZRX
This means over half of all ZRX tokens are already in circulation, with gradual release mechanisms ensuring responsible inflation management.
The wide distribution across thousands of wallets enhances decentralization—especially critical given ZRX’s role in governance.
Technical Performance & Real-World Adoption
The 0x API delivers enterprise-grade reliability:
- 99.9% uptime
- Average response time: 1.5 seconds
- Revert rate: just 2%
- Outperforms competitors like Uniswap, 1inch, and Paraswap in price quality 7 out of 10 times
Major platforms already rely on 0x:
- MetaMask Swap
- Matcha
- Zapper
- 1inch
- Opyn
- Gods Unchained
These integrations prove that 0x is not just theoretical—it’s powering real-world DeFi applications used by millions.
How to Use 0x
Using 0x is simple:
- Send or receive private trade orders via message/email.
- Browse public orders on relayer marketplaces.
- Integrate the 0x API into wallets or dApps for instant swap functionality.
Developers can build DEXs using the 0x Launch Kit, customize fee structures, and plug into deep liquidity pools—accelerating time-to-market.
Choosing a Wallet for ZRX
Since ZRX is an ERC-20 token, any Ethereum-compatible wallet works:
- Hardware wallets (Ledger, Trezor): Best for large holdings; maximum security.
- Software wallets (MetaMask, Trust Wallet): Free, user-friendly; suitable for daily use.
- Web wallets: Convenient but less secure; ideal for small amounts or frequent traders.
Always prioritize non-custodial solutions to maintain full control over your private keys.
0x Staking & Liquidity Incentives
In 2019, 0x introduced stake-based liquidity rewards:
- Market makers stake ZRX to earn a share of protocol fees.
- Users with smaller holdings can join staking pools, delegating their tokens to earn passive income.
This model aligns incentives across relayers, developers, and token holders—fostering a healthy ecosystem.
👉 Learn how staking can boost your crypto returns securely.
Frequently Asked Questions (FAQ)
Are the 0x protocol’s smart contracts audited?
Yes. All core smart contracts are open-source and have undergone rigorous audits by leading security firms including ConsenSys Diligence and Trail of Bits.
What is a 0x staking pool?
A staking pool allows liquidity providers to combine their ZRX tokens and collectively earn rewards from relayer fees. Pool operators take a small commission, while participants benefit from proportional payouts based on their contribution.
Can I build my own DEX with 0x?
Absolutely. The 0x Launch Kit provides all the tools needed to launch a fully functional decentralized exchange with customizable branding, fee models, and integrated liquidity.
Does 0x support NFT trading?
Yes. Thanks to native ERC-721 support, 0x enables efficient and secure trading of non-fungible tokens—used by projects like Gods Unchained.
Is ZRX inflationary or deflationary?
ZRX has a fixed max supply of 1 billion tokens—making it inflationary until cap is reached, then permanently deflationary due to scarcity.
How does the 0x API find the best prices?
It aggregates liquidity across dozens of sources—including AMMs like Uniswap and Curve—and runs optimization algorithms to deliver the most cost-effective swap routes in real time.
With growing adoption across DeFi, NFTs, and institutional finance tools, 0x continues to shape the infrastructure of Web3. As more assets go digital, protocols like 0x will play a central role in enabling open, efficient markets—where anyone can trade anything, anywhere, anytime.