0x is an integrated suite of decentralized finance (DeFi) infrastructure APIs that enables developers and teams to build financial products on crypto rails. Through the 0x APIs (offchain routing) and the 0x Protocol (onchain settlement via an open-source protocol), 0x connects Makers and Takers to facilitate the trading of digital assets. While Takers demand liquidity of digital assets on 0x, Makers are the parties that supply that liquidity. Onchain makers include AMMs and DEXs, while offchain makers are professional market makers that provide RFQ (Request-for-Quote) liquidity to 0x.
0x’s flagship product, Swap API, enables developers to deliver the best-executed price to users directly in their applications. It aggregates liquidity from 100+ sources, including decentralized exchanges (DEXs) and private market makers through the 0x RFQ, and its proprietary smart order routing. The best-executed price is different from the quoted price in that it is the best rate when the trade is realized, as opposed to the quoted rate subject to price slippage. Swap API is available on nine EVM-compatible blockchains including Ethereum, BNB Smart Chain (BSC), Polygon, Avalanche, Optimism, Fantom, Celo, Arbitrum, and Base. Raw Materials
The 0x platform also includes the 0x Dashboard, a developer experience tool with instant API keys, analytics, and monetization controls; Gasless API (rebranded from Tx Relay API), which enables developers to enhance user experience to reduce drop-offs in the trading process (available on Ethereum, Polygon, Base, Optimism, and Arbitrum); and Orderbook API, which enables developers to add limit orders to their DeFi applications (available on Ethereum, Polygon, and BSC). 0x’s products have been powering the backend processes for DeFi since it launched in 2017.
0x API volume grew for the second consecutive quarter, reaching $6.5 billion, up 73% QoQ. RFQ trades continued to grow, as a percentage of volume as 0x’s Gasless API expanded to Base, Optimism, and Arbitrum. The Gasless API ensures protection from MEV, more reliable transactions, and smoother interactions. It also facilitates gasless transactions, a new feature that enables applications to build products where traders can cover gas fees with traded tokens instead of native tokens. Implementations of the Gasless API, such as on Coinbase and Robinhood, help route more traffic through 0x APIs, contributing to its volume increase.
Ethereum’s share of 0x API volume dropped to 69%, its lowest quarterly level in a year. The largest gainers in Q1 volume share were Base (+3.2%), Arbitrum (+2.6%), and BNB Smart Chain (+2.2%). While only Base experienced a QoQ change greater than 2% (+3.1%), the budding rollup accounted for the most trades in the final week of the quarter. Base processed 26% of trades, Polygon processed 25%, and Ethereum 21%. This jump in Base’s activity may be attributed to increased memecoin trading and anticipation of Coinbase’s Smart Wallet which will simplify user interactions with Base.
DEX aggregators and liquidity providers experienced impressive growth in Q1. As the top 10 aggregators (outside of 0x) grew daily unique traders by 49%, 0x APIs experienced a 72% increase in daily unique traders. While other aggregators outside the top 10 grew usage by 192%, they averaged only 465 daily unique traders, paling in comparison to the 8,400 that the top 10 index averages and the 25,400 that 0x APIs average. Throughout the quarter, Coinbase and LI.FI had the largest user bases connecting traders to 0x infrastructure. As the market cycle continues in an optimistic direction, 0x APIs may experience more outsized, significant growth as it continues expanding its product suite and integrations into new applications.
0x achieved five consecutive quarters of growth in daily application integrations, averaging 116 applications per day in Q1, up 24% QoQ. Integration growth has contributed to the growth in transactions processed by 0x APIs over the last six months. In Q1, transactions increased by 70% QoQ. The top four tagged applications driving trades through 0x APIs include Coinbase, LI.FI, Matcha, and MetaMask.
On 0x, offchain liquidity is sourced from professional market makers via the 0x Request-for-Quote (RFQ) system. The RFQ system enables traders to request real-time quotes from market makers. Using the RFQ system, traders experience zero slippage, total protection from the risk of MEV attacks, and optimized trade execution. RFQ is best utilized on non-pegged pairs, including some of the most highly traded pairs such as USDC-WETH, USDT-WETH, USDC-WBTC, WBTC-WETH, and DAI-WETH.
RFQ volume on available pairs jumped 83% QoQ, accounting for 48% of the respective volume. Simultaneously, non-RFQ volume only grew by 19% QoQ. RFQ and non-RFQ trades on available pairs experienced a different dynamic, with RFQ trades increasing by 60% QoQ and non-RFQ trades growing by 87%. Regardless, RFQ trades still accounted for 66% of total trades. While a portion of this growth can be attributed to the current market cycle, 0x also continues to ship new products and expand to various chains.
0x had a productive Q1 as it shipped new developments focused on integrations and product releases.
0x introduced gasless swaps at the end of January 2024, enabling developers to provide this feature via 0x’s Gasless API. The core aspects of this feature are described below.
0x launched its Trade Analytics dashboard in mid-March 2024, enabling paid subscribers to track various metrics related to their user trading behavior through 0x APIs. The core aspects of this product are described below.
Compounding the market's growth, 0x released new products and expanded integrations in Q1. Through its Gasless API, 0x expanded its gasless swap product to Base, Optimism, and Arbitrum. Throughout the quarter, 0x APIs experienced QoQ growth in volume (+73%), transactions (+70%), daily unique traders (+72%), and application integrations (+24%). Already prevalent in many top protocols, 0x is primed to continue expanding to new projects while taking advantage of optimistic market conditions.
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Onchain Jíbaro. Background: Photography, Quantitative Banking, & Manual Labor.
Chokes Onchain Jíbaro. Background: Photography, Quantitative Banking, & Manual Labor.