0x's first consumer product is an aggregator of decentralized exchanges

Quick Take

  • Decentralized exchange infrastructure provider 0x has launched a new platform that aggregates liquidity from multiple DEXs
  • The goal is to be the Robinhood of DEX trading
advertisement

Decentralized exchange infrastructure provider 0x has launched its first consumer product: a platform that aggregates liquidity from other decentralized exchanges.

When a trader places an order on the new service, called Matcha, it splits the trade across several different networks — including 0x Mesh, Uniswap, Curve, Oasis and other “proprietary liquidity sources” — in order to surface the best price.

As The Block Research has reported, a recent rise in trading volumes on decentralized exchanges (DEXs) has led to a growing interest in so-called DEX aggregators

Liquidity for DEX trading is spread out over a number of different platforms, which can lead to "slippage"— a discrepancy between the price a trader expects and the one at which the trade executes. DEX aggregators are supposed to help mitigate that problem.

Matcha will have competition. Early leaders in the field include 1inch and Paraswap. But 0x’s marketing lead Matt Taylor contended in an interview with The Block that Matcha’s order routing system would be better than those already available. "We feel like we’re kind of the first professional team to really hone in on the algorithms for how these orders are split between the various exchange networks."

Besides that, the new service will put a big emphasis on user experience. “DEXs are kind of hard to use,” said Taylor. Ethereum gas prices and waiting times can be inconvenient, and as such, 0x sees a “huge opportunity to uplevel the design of a DEX,” he said.

As for other DEX aggregators, they "all have similar UI/UX that basic crypto traders and non-native crypto users would likely find non-intuitive and intimidating," 0x's community engagement lead Brent Oshiro wrote in a recent Reddit post.

Taylor compared the project to Robinhood, the popular stock trading app. "They did such a good job of designing a user-friendly application that it has brought in a new wave of users into stock trading, and we feel like Matcha can do that for DEX trading."

0x will not charge for the use of the service for the time being. But eventually, it may introduce some kind of trading fee system, according to Taylor.


© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

The Era of dFMI for Institutional Digital Asset Markets

Post-trade in capital markets today operates primarily based on provision of balance-sheet to off-set counterparty risk, either directly or indirectly, via settlement agents, CCPs and CSDs etc.  The issues with this ‘hub and spoke’ model are well known, including the resulting massive duplication of data, bifurcated processes, concentration of risk and subsequent deployment of capital and resources that could be better utilized. 
Read Full Story
Sponsored Post

Retail traders are here to stay, says eToro's US CEO

On this episode of The Scoop, eToro's newly appointed US lead Lule Demmissie explained why she doesn't see retail's newfound presence in the market subsiding anytime soon and how eToro plans to capitalize on growing the business across cryptocurrencies and stock trading.
Read Full Story
Jan 26, 2022, 4:23PM UTC
More