As 2020 continues to show an ever-growing demand for decentralized exchanges, 0x Protocol just introduced a new tool that makes liquidity run even deeper.
With the introduction of 0x API, it’s even easier for DeFi developers to tap into both off-chain and on-chain DEX liquidity.
“With a simple GET call, you can use 0x API to fetch the best price available in the DEX ecosystem for any token. Under the hood, (0x) aggregates liquidity from 0x Mesh and other decentralized exchange networks like Kyber, Uniswap and Oasis, and use smart order routing to find the best prices”
In practice, 0x API leverages smart order routing to split transactions across multiple DEXs to be filled with the lowest slippage possible.
Paired with automatic upgrades, a REST API endpoint, and the ability to encode advanced swaps directly into smart contract transactions, it’s safe to say that 0x just took DEX tooling to the next level.
We’ve seen a number of DeFi projects began implementing the 0x API, a growing signal that as time evolves, we can expect 0x Protocol to continue serving as a strong foundation for Ethereum DEX liquidity.
Why 0x API?
By aggregating liquidity from leading DEXs with the intent to gradually add more bridges, web3 applications now have even more capabilities to reduce onboarding barriers by providing asset exchanges directly in-app with minimal slippage – all without needing an API Key.
This means that anyone can tap into liquidity without being granted access by 0x, further building on the notion of composability and the permissionless nature of protocols like Ethereum.
We’ve seen the emergence of products integrating features like a Uniswap front-end and with tools like 0x API, those pools can now run even deeper by sharing liquidity from multiple exchanges.
Outside of being able to aggregate liquidity from all the major DEXs, the 0x API will soon allow developers to tap into more novel uses including but not limited to:
- Streaming price information.
- Product monetization through fee collection.
- Creating advanced trading interfaces.
- Submitting orders on behalf of users with meta transactions.
While these uses are still in the pipeline, the important thing to note is that DEXs are becoming more powerful by the day. The cohesive advancement of leading DEXs goes to show that the major providers are cooperating in an attempt to offer the best products possible.
As the Ethereum ecosystem continues to grow, it’s evident that tools like 0x API are further pointing towards a future in which third-party trust can be mitigated without compromising the user experience.
To get started with 0x API, check out the following documents.
In the meantime, be sure to stay up on all thing 0x via their official blog!
Cooper is focused on building compelling blockchain products. He currently works as the managing director at Fitzner Blockchain Consulting and is a contributor to DAOs like MetaCartel and Moloch. He is an active member of the Ethereum community and has a strong interest in for-profit businesses such as The Block Crypto and Messari.
