TL;DR

• 0x is a decentralized exchange infrastructure enabling token swaps without centralized intermediaries.
• Created in 2016 by Will Warren and Amir Bandeali; raised $24M in 2017 ICO.
• Combines off-chain order relay with on-chain settlement, supporting ERC‑20 and ERC‑721 assets.
• ZRX token enables protocol governance via DAO and incentivizes liquidity through staking.
• Fully audited smart contracts, multi-chain support, and active community governance.

0x is one of the earliest protocols to enable decentralized exchange of assets on Ethereum. Rather than building its own exchange, 0x provides the infrastructure for others to create trading platforms, wallets, and marketplaces where users can swap tokens directly from their wallets. This approach promotes decentralization, reduces costs, and enhances flexibility across DeFi.

As the ecosystem continues to expand, 0x has evolved far beyond simple token swaps. With its robust smart order routing system, developer tooling, and support for multiple chains like BNB and Polygon, 0x now serves as a foundational layer for a range of crypto-native applications. Its mission is clear to create a world where value flows freely and efficiently, without relying on centralized intermediaries.

Founders & Origins Story

0x was founded in 2016 by Will Warren and Amir Bandeali. Warren brought cryptographic know-how from his time advising BAT, and Bandeali contributed financial trading expertise from prior backgrounds.

In August 2017, they conducted a $24 million ICO (selling 50% of ZRX), attracting investors like Polychain and Pantera . The project's name and token were registered in 2017, and ZRX became the first ERC‑20 token listed on Coinbase in October 2018 .

Today, 0x Labs coordinates development, but over 30 engineers, researchers, and designers across the community continue to support the protocol.

Core Concept: Exchange Infrastructure

0x offers a plug-and-play toolkit for decentralized exchange functionality. It is not a trading venue itself; instead, it provides:

• Off-chain order relay: Users sign trade intents that relayers share; no gas incurred until final execution.
• On-chain settlement: A smart contract ensures atomic swaps, moving tokens securely once both parties agree.
• Multi-asset support: Compatible with both ERC‑20 fungible tokens and ERC‑721/1155 NFTs .

This architecture keeps user assets non-custodial, reduces gas costs, and grants developers freedom to embed trading everywhere.

How It Works

A typical 0x swap follows these steps:

1. Order Creation: A maker signs a trade order for a token-pair, amount, price, and expiry.
2. Order Relay: The order is unveiled by a relayer via off-chain APIs.
3. Order Matching: Relayers or takers find matching orders.
4. On-chain Settlement: The trade executes through 0x smart contracts; fees in ETH or ZRX are settled.
5. Fee Distribution: Part of the fee rewards the relayer; staking ZRX earns liquidity rewards.

By separating discovery and settlement, 0x maintains efficiency without sacrificing trust.

ZRX Token & Tokenomics

Utility Roles

Governance: ZRX holders vote on protocol upgrades and treasury allocations in the 0x DAO .

Staking: Relayers stake ZRX to earn ETH trading fees; this aligns incentives for liquidity .

Fee Payment: Takers pay fees in ZRX for protocol services, helping incentivize ecosystem growth.

Supply & Distribution

1. Max supply is capped at 1 billion ZRX; ~85% (~848M) is in circulation .
2. Allocation from the ICO: 50% public sale, 15% developer fund, 15% core devs, 10% founders (vested), 10% advisors/backers .

Staking & Liquidity

Over 50 million ZRX are staked, illustrating healthy relayer participation . Epoch-based distribution ensures continued liquidity support.

Developer Ecosystem & Use Cases

• Matcha & Wallets

1. Matcha: 0x Labs' own DEX aggregator, optimizing routing and slippage.
2. Wallet integration: MetaMask, Coinbase Wallet, and others implement 0x API for seamless in-app swaps .

• NFTs & Marketplaces

1. With Protocol v4, 0x supports ERC‑721/1155 NFT swaps.
2. Coinbase's NFT marketplace and other platforms use 0x for NFT liquidity .

• Cross-chain & Emerging Use

1. Active deployments on Ethereum, Polygon, Avalanche, BSC, Celo, and more .
2. Supports in-game item trading, OTC desks, and decentralized marketplaces.

Governance & Community Dynamics

1. The 0x DAO oversees protocol development, treasury funding, and upgrades.
2. Governance proposals occur publicly on forum posts like "Request: reinstating protocol fees" .
3. Voter concerns include dashboard UI and staking mechanisms.
4. Ongoing DAO research highlights possible issues-concentration of power, low voter turnout-mirroring trends seen across DeFi DAOs .

Security & Audits

Audits: Core contracts are regularly audited (e.g., by ConsenSys Diligence).
Vulnerability patches: v2 had a non-exploited bug; it was resolved promptly .
Bug bounty: Active bounties across supported chains safeguard integrity.
Upgradeable contracts: Proxy patterns allow non-disruptive upgrades .

Challenges & Risks

1. Competition

• Faces rivalry from AMMs like Uniswap and aggregators like 1inch.
• Differentiation lies in express order books and developer integrations.

2. Network Cost

• Settlement still occurs on Ethereum, subject to gas fees-especially impactful for micro-transactions.

3. Liquidity Fragmentation

• Spread across relayers and chains; maintaining deep pools is challenging.

4. Regulatory Impact

• Investigations by bodies like the CFTC consider DEX infrastructure under scrutiny .
• Clear compliance frameworks are still emerging.

5. Governance Flaws

• DAO activity reflects common on-chain issues-low participation, token concentration, vote manipulation risks .

Roadmap & Recent Developments

Protocol v4, Launched in early 2021, v4 introduced:

• Native NFT (ERC‑721/1155) support.

• Enhanced gas efficiency.

• Advanced swap routing features .

• Cross-chain Expansion

1. Wider support includes Polygon, BSC, Avalanche, Celo, Base, Arbitrum, Optimism, and more .

• Developer Tools

1. Swap SDK and API improvements simplify integration.

2. Updated relayer framework enables better MEV resistance and payload complexity handling .

• Ecosystem Growth

1. Messari report at Protocol Berg 2025 highlights increased adoption-more integrations even as volume fluctuated .

Final Thoughts

0x may not make waves, but it anchors DeFi. It gives developers secure, transparent exchange tools usable across a wide range of platforms-wallets, NFT sites, gaming, DAOs, and more. With deep integrations, DAO governance, staking incentives, and cross-chain support, 0x is foundational infrastructure.

It doesn't fight for headlines but continues powering peer-to-peer value flows. As DeFi expands past simple token swaps, projects like 0x that prioritize composability, openness, and non-custodial trust will become ever more critical.