Decentralized exchanges (DEX) provide places for users to swap their digital assets without needing to rely upon centralized intermediaries. The most popular DEXes operate either an automated market maker model, like Uniswap, or a decentralized order book model, like dYdX.

0x (pronounced “zero ex”) provides a similar service. However, instead of posting every transaction to the blockchain—which can be resource-intensive and quickly incur large gas fees—0x uses combinations of off-chain interactions and on-chain smart contracts to facilitate more cost-effective swaps. Built on the Ethereum blockchain and other EVM chains, 0x allows users to exchange both ERC-20 tokens and non-fungible tokens (NFTs).

The 0x protocol also aggregates liquidity from over 100 other exchanges (including those like Uniswap and Curve) to enable the swapping of assets at the best possible price. By doing this, the system aims to minimize slippage and execute swaps at optimal prices. The ZRX token is used to fulfill two main purposes for the 0x protocol, including governance and as a medium for rewarding participants.

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