0x
Web3 / defi
0x is an open protocol that enables peer-to-peer trading of Ethereum-based tokens and assets through decentralized exchange mechanisms implemented via smart contracts. The protocol allows users and applications to create, fill, and settle trades without custodial intermediaries, using cryptographic signatures to authorize transactions and a relayer network to broadcast and discover orders. Rather than requiring all trades to occur on a single exchange platform, 0x provides a shared set of smart contracts and standards that any application can integrate, enabling liquidity fragmentation across multiple interfaces while maintaining interoperability. The protocol's design separates market-making and order broadcasting from settlement, creating flexibility for how trading interfaces operate. Example: dYdX initially built its decentralized trading platform using 0x's protocol for spot trading, allowing users to trade ERC-20 tokens directly from their wallets while 0x's smart contracts handled settlement without requiring custody of user funds. Why it matters for DeFi: 0x demonstrates how open protocols can create composable trading infrastructure for DeFi, enabling multiple applications to share liquidity and order books while remaining non-custodial, which is fundamental to DeFi's philosophy of user sovereignty.
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