0x developers release liquidity aggregation tool for Ethereum-based exchange protocol
The key improvement staff behind 0x, the ethereum-based decentralized exchange protocol, has launched a brand new product for aggregating liquidity throughout totally different decentralized exchange (DEX) networks.
Established in 2016, the 0x protocol permits for the peer-to-peer exchange of belongings on the Ethereum community. To date, the protocol has seen roughly $750 million in whole quantity and over 30 initiatives constructed upon it, in response to its web site.
In Dec. 2019, the 0x Core Team upgraded the protocol to Version three, which included a set of bridge contracts that may allow liquidity aggregation from 0x in addition to different DEX networks.
The new product makes use of these bridge contracts to faucet into the liquidity swimming pools of each on-chain DEX networks like Kyber, Uniswap, and MakerDAO’s Oasis, in addition to off-chain DEX networks like 0x, the corporate’s advertising lead Matt Taylor advised The Block.
“There are tons of projects that use the liquidity from individual DEX networks, but the liquidity isn’t connected,” Matt mentioned. “Our goal is to provide the best price for any token trading pair on the market…it’s pretty much guaranteed with 0x API because we’re just pulling from networks that have the best prices.”
For occasion, whereas 0x is liquid in relation to fashionable buying and selling pairs like DAI to ETh or USDC to DAI, he mentioned, it lacks liquidity on different cash like Augur (REP) that is likely to be extra liquid on one other community.
0x API goals to unravel this drawback by creating an order that’s break up between all DEX networks and returning again the very best value potential. With a couple of traces of code, developers can now connect with the API, get a quote within the again finish, and execute the transaction at the very best value.
“We want to be the most liquid decentralized exchange, but we also want to provide developers the best price,” he mentioned. “If that’s not on 0x native liquidity, we’re glad to provide them on Kyber, for instance, as a result of that’s a greater developer expertise.
Notably, 0x API presently doesn’t have a bridge with dYdX, a margin lending exchange that began sourcing liquidity from 0x in June 2019. dYdX has a closed pool, Matt defined, so whereas a maker utilizing 0x API might probably make an order on margin commerce on dYdX, there isn’t any method on the taker aspect to fill dYdX trades by way of 0x API.