0x Protocol is now live on Binance Smart Chain

The 0x ecosystem is expanding to multiple L1/L2 networks in 2021.
0x Labs
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Key Points:

  • 0x protocol v4 is now live on BSC. The 0x v4 smart contracts on BSC are identical to those on Ethereum, which have been audited and adopted by the 0x community.
  • 0x API now supports BSC and aggregates liquidity across PancakeSwap, SushiSwap, DODO, and more. We’re proud to be launching 0x API’s BSC support alongside our initial partners Zapper, dex.guru, Zerion, Dodo, DexKit, and Matcha.
  • Matcha has also added support for BSC, providing users with the ability to discover and access hundreds of new assets.
  • There is no new ZRX token on BSC. There has been no change in how the canonical ERC20 ZRX token functions on Ethereum. Be cautious, any contrary claims are scams!

0x protocol is expanding to multiple L1 and L2 networks in 2021

At 0x Labs we envision a world where all forms of value are tokenized on public blockhains and globally accessible through p2p markets. The crypto ecosystem is well on its way towards this vision, with over 300k tokens on the Ethereum blockchain, thousands of active markets, and a user base that is rapidly growing.

With Ethereum’s success, demand for block space has skyrocketed to the point that usage is consistently pushing up against the network’s throughput limits. As a result, Ethereum transactions have become expensive, pricing out potential users and use cases. This isn’t a new predicament, scaling limitations have always existed for blockchain networks, often sparking contentious debate within developer communities and driving major shifts within the industry. The bitcoin block size debate reached a head in 2013, causing Bitcoin to fork into two networks, and subsequent flare ups took place within the bitcoin community in 2015 and 2017 [1][2][3].

One thing that is different this time is that Ethereum is an open platform that supports a wide variety of use cases; a sandbox for developers to explore all sorts of new ideas. Some of the innovations that have succeeded on Ethereum have simply grown out of the openness of Ethereum as a platform and the creative ecosystem that has formed around it. In the current fee environment, some of these communities will find new homes on other L1 or L2 networks. Ultimately, we believe tokenization will spread to new networks that serve a variety use cases and user demographics, with many successful ecosystems existing in parallel.

Permissionless and censorship-resistance are necessary for some use cases, but it is critical to recognize that decentralization exists on a spectrum, the blockchain design space is vast, and all design decisions come with tradeoffs. While 0x Labs is planning to spearhead the expansion of 0x protocol to multiple L1 and L2 networks in 2021, we believe Ethereum will continue to serve as a nexus for decentralized finance and 0x protocol.

Framework for evaluating new blockchains

We shared our framework for evaluating new networks in October 2020 and our phased approach for rolling out support in February 2021. Given the role of 0x protocol as a middleware protocol that sits in between the blockchain consensus layer and the application layer that’s exposed to end users, the needs of users and integrators weigh heavily in the evaluation. Binance Smart Chain (BSC) unambiguously satisfies the criteria we set out and the decision to expand to BSC was impartial. Over the past 3–6 months, BSC has developed a vibrant ecosystem. Today, BSC represents an exciting opportunity to expand the reach of 0x protocol and that of our 0x API partners to a large and growing global user base.

How does deploying 0x Protocol on BSC and other blockchains help us pursue our mission?

Our mission is to create a tokenized world where all value can flow freely. We believe that exposing the broadest set of users to smart contracts, self-custody wallets, and DEX markets is key to achieving that mission.

Hosted wallets and exchange services such as those offered by Coinbase and Binance are largely responsible for the level of adoption and awareness that crypto has garnered to date. By providing a simple path to purchase crypto with fiat and store it in a hosted wallet, these institutions have driven crypto ownership to an estimated 100 million people as of 2020. Moving crypto enthusiasts from hosted wallets and centralized exchanges to self-custody wallets and DEX markets will be an incredible undertaking and Binance Smart Chain provides a low-friction path for Binance users to do just that. Binance’s effort to introduce their massive user base to the world of smart contracts and self-custody is an incredible contribution to the space and could move us further along the adoption curve by multiple years.

A phased approach to porting 0x Protocol to new blockchains

Instead of immediately investing the resources needed to port the entire 0x tech stack to a new blockchain, we will roll out layers of the 0x stack in phases, collecting adoption metrics along the way. This will allow our team to allocate our resources most efficiently. The first three phases are outlined below. As of today, Phase 1 has been completed for BSC.

Phase 1:

  • Deploy 0x v4 smart contracts.
  • Aggregate local sources of liquidity into 0x API.
  • Plug into Matcha.

Phase 2:

  • Add support for the 0x RFQ system, allowing professional market makers to provide competitive pricing via 0x API.

Phase 3:

  • Add support for censorship-resistant off-chain limit orders via 0x Mesh.

For Phases 1–3, there will be no changes to the way a local instance of 0x protocol is governed: all protocol changes will continue to be coordinated on Ethereum using the canonical ZRX token. The 0x v4 contracts deployed on BSC will remain functionally identical to the instance deployed on Ethereum and mirror any updates (barring technical constraints) that are adopted by the 0x community through governance. While this topic is still subject to research and the availability of bridges, 0x protocol fees collected on non-Ethereum chains could potentially be collected and transferred to the staking system on Ethereum.

Looking further into the future, we envision a ZRX-controlled blockchain hub that connects each deployment of 0x Protocol (“embassy”) into a global system with unified economics, governance, and liquidity.

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