A Decentralized Exchange Leaves 0x; ZRX Co-Founder Responds

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A decentralized exchange – DDEX – has announced that it will be leaving 0x for the Hydro Protocol.

0x is an open system designed for decentralized exchanges to trade tokens on the Ethereum blockchain.

How Did 0x React?

The company told customers about the switch in a blog post published on December 14 and written by the project’s founder Will Warren. The post explains:

“Today, DDEX announced that they will be moving to Hydro Protocol. We are disappointed to see them leave the 0x ecosystem. It can be challenging for crypto businesses to find an edge in the highly competitive DEX space and current crypto climate. The DDEX team has communicated that rolling their own contracts is yet another step in the never-ending quest to establish an edge. While we understand their decision, we believe that modularity and standardization will lead to greater innovation over time.”

0x is built to support peer-to-peer (p2p) trading, order matching, open orderbook and a variety of differing relayer models of trading. Every model is designed to offer customers top-notch security by providing decentralized environments and improved user experiences. 0x also works with developers to help them create new ways of improving present decentralized network use cases.

In the blog post, the company discusses some of its other advantages by stating:

“One of the benefits of the modular architecture offered by 0x v2.0 is that it makes it simple for developers to support use cases with just a few lines of code. This capability is particularly exciting as it allows us to rapidly experiment with new extensions to 0x, including trade execution coordinators (TECs), which allow us to eliminate some of the tradeoffs associated with existing relayer models. TECs give guarantees around trade execution similar with order matchers yet provide the flexibility of an open orderbook.”

The Major Point Behind ZRX

One of the primary focuses of Warren and his team is the ZRX token. Warren explains that the goal behind it is for ZRX to push what he calls a “governance process” that will allow differing ecosystems to execute protocol upgrades on their own while managing community treasuries. This is designed to offer such ecosystems a chance to take more charge of their financial infrastructures and pave the way for greater fairness in the industry. Warren writes that:

“DDEX migrating to their own protocol underscores the importance of governance and giving stakeholders a voice in how the 0x protocol evolves.”

Do you consider the 0x platform trustworthy? Why or why not? Post your comments below.

Image courtesy of Shuttershock

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