0x Protocol (ZRX)

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Overview

0x Protocol (ticker: ZRX) is open-source infrastructure for exchanging digital assets on public blockchains. Rather than being a single exchange, 0x supplies the smart contracts and developer APIs that others use to add trading to their apps and wallets. It powers swaps for both fungible tokens (ERC‑20) and non‑fungible tokens (ERC‑721 and ERC‑1155), with a design that combines off‑chain order creation for speed and on‑chain settlement for security. Developers often access its liquidity through the 0x Swap API, which aggregates quotes from many decentralized exchanges and professional market makers across multiple EVM‑compatible chains. The current production version of the core contracts is v4. (0x.org)

At the center of governance is ZRX, an ERC‑20 token with a fixed supply of 1 billion units. ZRX holders set protocol parameters, steward community treasuries, and help guide upgrades through an open governance process. Over time the economic model has evolved from early “relayer fee” concepts to today’s emphasis on governance, protocol configuration, and treasury decisions. (en.wikipedia.org)

History & Team

0x was initiated by Will Warren and Amir Bandeali, who published the original whitepaper in February 2017 and deployed the initial release in July 2017. The project’s mission—“a tokenized world where all value can flow freely”—framed 0x as shared exchange infrastructure for the broader web3 ecosystem. In October 2018, ZRX became the first ERC‑20 token listed on Coinbase’s U.S. platform, a milestone that raised the protocol’s profile among mainstream users. (en.wikipedia.org)

To support long‑term development and adoption, the team formalized 0x Labs in 2020 and later launched community governance structures, including the 0x DAO and a ZRX community treasury. The governance forum and Snapshot voting processes give token holders domain over the protocol contracts and treasury allocations, with clear procedures for proposing changes. (0x.org)

On the business side, 0x Labs raised a $15M Series A in February 2021 and a $70M Series B in April 2022 led by Greylock. Notable participants included Pantera Capital, Jump Crypto, A.Capital, Sound Ventures, OpenSea, Coinbase, Brevan Howard, IOSG Ventures, Reid Hoffman, and Jared Leto. These rounds funded growth of the Swap API, the Matcha trading interface, and continued protocol engineering. (0x.org)

Technology & How It Works

Hybrid design: off‑chain orders, on‑chain settlement

0x’s core idea is simple: let people craft and share orders off‑chain—so they’re cheap to create and cancel—and finalize the trade on‑chain only when both sides agree. An “order” is a signed message that encodes what asset is being sold, what’s being bought, the price, and when the offer expires. When a taker accepts the terms, the 0x smart contracts settle the trade securely on the blockchain. This hybrid design reduces gas costs and congestion while keeping custody with the user. (0x.org)

Order types and the Exchange Proxy

The v4 Exchange Proxy exposes lean, audited settlement functions for multiple order flavors:

• Limit orders: standard maker/taker orders between ERC‑20 tokens at a fixed price.
• RFQ (Request‑for‑Quote) orders: lightweight, just‑in‑time quotes sourced directly from market makers during quote construction; these often produce better execution for larger or time‑sensitive trades. (0x.org)

NFT support

0x v4 added specialized order types for NFTs, enabling efficient ERC‑721 and ERC‑1155 sales and bids (ERC‑20 for NFT, or vice versa). The protocol also supports features like creator royalties and platform fees at settlement. This specialization allowed NFT fills that were benchmarked to be significantly more gas‑efficient than many alternatives at launch. (docs.0xprotocol.org)

Aggregation via 0x APIs

Most integrators use 0x through its APIs rather than interacting with contracts directly. The Swap API sources prices from 100+ liquidity venues across many chains and can split a trade across multiple routes to reduce slippage. Developers can also use the Gasless API to abstract gas costs from end users, improving onboarding and conversion in consumer apps and wallets. 0x maintains a public list of supported chains and liquidity sources for developers. (0x.org)

Governance and upgrades

ZRX holders govern the protocol, the governance portal, and community‑owned treasuries. The community runs “temperature checks” and formal votes with defined quorum thresholds, and maintains living documents such as a draft constitution to clarify scope and process. Upgrades—like the move to v4 and later patches—flow through this governance pathway. (forum.0xprotocol.org)

Tokenomics & Utility

ZRX is an ERC‑20 token with a fixed supply of 1,000,000,000 created at genesis. The initial allocation included a public sale and set‑asides for the team, advisors, and development funds to support ecosystem growth. Today, the token’s main role is governance: one token generally corresponds to one vote in protocol and treasury decisions, and holders can delegate voting power to representatives. (en.wikipedia.org)

In earlier versions, ZRX aligned incentives for “relayers” and market makers. With 0x v3 (2020), staking let market makers and delegators earn ETH‑denominated liquidity rewards funded by protocol fees. In September 2021, following community deliberation (ZEIP‑91), protocol fees were removed in v4 and v3, and the rewards mechanism was retired. Since then, ZRX’s utility has centered on governance, stewardship of community treasuries, and signaling for protocol direction. (docs.0xprotocol.org)

Because 0x is infrastructure, applications built on it can introduce their own fee models. Many apps that integrate the Swap API set an application‑level fee or monetize positive slippage, while ZRX remains the token for protocol‑level decisions. (0x.org)

Ecosystem & Use Cases

0x functions as a building block wherever asset exchange is a feature. Common patterns include:

• Wallet swaps: Wallets embed the Swap API so users can trade without leaving the app. Integrations span Coinbase Wallet, MetaMask, Robinhood Wallet, Phantom, Zerion, Zapper, and others. (0x.org)
• DEX aggregators and interfaces: Matcha.xyz—built by 0x Labs—provides a user‑friendly interface over the aggregator, shielding traders from MEV and surfacing best routes. In 2025, Matcha added Solana support, showing 0x’s push to bridge EVM and non‑EVM liquidity in a single app. (matcha.xyz)
• Marketplaces and games: Apps can use NFT orders to build peer‑to‑peer marketplaces for digital goods, game assets, or collectibles with custom fee logic and royalties support. (docs.0xprotocol.org)
• DeFi protocols and dashboards: Portfolio managers, on‑chain funds, and DeFi apps use 0x routing to rebalance positions, automate strategies, or offer “swap inside the app” features without maintaining their own order books. (0x.org)

This broad footprint reflects 0x’s developer focus: a suite of REST APIs, SDKs, and reference examples that embed exchange functionality with minimal friction. (0x.org)

Advantages & Challenges

Advantages

• Open and modular: 0x’s audited contracts and APIs are permissionless to use and compose well with other DeFi building blocks. (0x.org)
• Efficient order design: Off‑chain order creation paired with on‑chain settlement keeps costs low and avoids unnecessary blockchain writes. RFQ orders and private market‑maker quotes often improve execution for larger trades. (0x.org)
• Multi‑chain reach and aggregation: The Swap API spans many EVM networks and a large set of liquidity sources, reducing fragmentation for end users. Gasless tooling lowers UX hurdles for consumer apps. (0x.org)
• NFT support: v4’s NFT orders offer lean, gas‑efficient settlement for ERC‑721 and ERC‑1155 trades, with flexible royalty support. (docs.0xprotocol.org)

Challenges

• Competitive market: DEX aggregation is a crowded space, with many routers competing for best price and fastest fills. Apps choose providers based on coverage, reliability, and monetization options.
• Evolving incentives: Earlier fee‑funded staking for market makers was discontinued in 2021; governance now carries most of ZRX’s utility, which means token value is closely tied to the community’s use of that governance. (docs.0xprotocol.org)
• Regulatory complexity: As with other exchange‑related infrastructure, U.S. authorities have scrutinized how front‑ends and protocol tooling intersect with regulated activities. 0x Labs settled a 2023 CFTC matter tied to leveraged tokens available through a front‑end and implemented remedial steps, illustrating the importance of careful product design. (goodwinlaw.com)

Where to Buy & Wallets

ZRX is available on major centralized exchanges and popular decentralized trading venues:

• 0x Protocol can be purchased on Coinbase. (coinbase.com)
• ZRX is available on Binance.US. (support.binance.us)
• ZRX is listed on Kraken. (kraken.com)
• ZRX can be traded on decentralized platforms such as Uniswap and Matcha. (help.matcha.xyz)

As an ERC‑20 token, ZRX works with mainstream Ethereum‑compatible wallets:

• MetaMask supports displaying and managing ERC‑20 tokens, including adding custom tokens when needed. (support.metamask.io)
• Ledger hardware wallets support ERC‑20, ERC‑721, and ERC‑1155 assets via the Ethereum app and Ledger Live. (developers.ledger.com)
• Many apps and wallets integrate 0x directly, including Coinbase Wallet and others, allowing in‑wallet swaps and portfolio actions. (0x.org)

Regulatory & Compliance

0x is open-source exchange infrastructure, and the way it is used can fall under different legal regimes depending on the product design and the user’s jurisdiction. In the United States, the Commodity Futures Trading Commission (CFTC) announced settlements in September 2023 with several DeFi projects, including ZeroEx, Inc. (the company behind 0x Labs), citing the availability of leveraged tokens through a user interface. ZeroEx paid a civil penalty and, as noted by legal analyses, disabled access to leveraged tokens for U.S. users as part of its remediation. These events did not “shut down” the open‑source protocol; they highlight how front‑end features and listings can trigger specific regulatory obligations. (skadden.com)

From a governance and ecosystem perspective, 0x maintains public legal guidance for developers that surveys key areas like U.S. securities laws and money transmission, emphasizing that compliance depends on the exact service being built on top of the protocol. Outside the U.S., treatment varies under local frameworks for crypto assets and market infrastructure. (0x.org)

Regarding Islamic finance considerations, many analysts view 0x Protocol’s core design—peer‑to‑peer spot exchange settled by smart contracts and not centered on interest‑bearing lending—as generally compatible with Shariah principles. Whether a specific use is considered halal depends on the assets traded (for example, avoiding tokens linked to prohibited activities) and the trading practices of the user or application. This assessment focuses on how the protocol functions rather than endorsing any particular token that might trade through it.

Future Outlook

Three trends stand out for 0x’s trajectory. First, aggregation continues to matter as token markets spread across more chains and venues. 0x’s APIs aim to give builders “one pipe” to deep liquidity with monetization options such as application‑level fees and positive slippage. Second, user‑experience tooling—like gasless approvals and MEV‑aware routing—should keep making swaps feel more like web2, which is important for mainstream adoption. Third, cross‑ecosystem reach is expanding: 0x’s own front‑end, Matcha, now supports Solana alongside EVM chains, hinting at a broader strategy to bridge liquidity across very different environments under a single interface. (0x.org)

On governance, ZRX holders already steer contract upgrades and treasury spend. Expect continued work on formal governance documents, Snapshot processes, and community funding programs as the ecosystem matures. Over the long run, the token’s influence will track how actively the community uses those tools to fund development and refine the protocol.

Summary

0x Protocol is best understood as shared exchange plumbing for web3. It standardizes how apps compose token swaps, brings prices together from many venues, and settles trades through audited v4 contracts. ZRX gives its community the power to set rules, fund public goods, and coordinate upgrades. With broad wallet and app integrations, NFT‑aware order types, and growing multi‑chain coverage, 0x remains a foundational piece of decentralized trading infrastructure. As developers pursue better UX and cross‑chain connectivity—and as governance continues to evolve—the protocol’s role as a neutral, open standard for on‑chain exchange is likely to remain important across the crypto ecosystem. (0x.org)