dYdX will soon discontinue support for 0x-based markets

advertisement

dYdX, a non-custodial cryptocurrency exchange built on the Ethereum blockchain, will soon discontinue support for 0x-based markets. 0x is a decentralized exchange protocol and liquidity provider on Ethereum.

According to Zhuoxun Yin, dYdX's head of operations, the discounted support is expected to happen after 0x transitions to the third version of its protocol. The success of dYdX's ETH/DAI market is one of the contributing factors, Yin added.

"We’ve been able to build meaningful liquidity on our markets so far, quite quickly," Yin tells The Block.

As analyzed by The Block researcher Matteo Leibowitz, dYdX "saw $60 million volume in Q2, $70 million in Q3, and is expected to see further growth by the end of Q4. Daily average volume sits at roughly $800,000 while the average trade size is $5,000."

0x v3 brings with it several infrastructure updates along with a new economic model for its native ZRX token. As Leibowitz wrote, "in 0x v3, traders using the 0x protocol must pay a fee to market makers, distributed pro rata according to ZRX staked, equal to the transaction gas fee. This updated model is intended to attract more market liquidity, with the explicit user fee offset by tighter spreads. However, dYdX is confident that it can attract liquidity without burdening users with additional fees."

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC
More