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Hot Wheels Community (ID: FHBT18)
Hot Wheels Community (ID: FHBT18), Author: Pepe, reproduced by Odaily with authorization.
Hello everyone, I’m Pepe, and now the market has reached a point where the eyes are closed. Looking at the 7-day gains on the homepage of coingecko, there are basically no red ones (green up, red down), including what is generally believed by domestic wine and food Some "stablecoins".However, in such a big environment, I don’t know if you have a feeling that some coins will skyrocket only after you leave. If you have a similar experience recently, you may still have to be patient.The protagonist of today’s story is such a currency, which belongs to the DeFi sector and is still an old-fashioned project. However, in this wave of DeFi, from November last year to now, it has risen slightly, but compared with uni/sushi, which belong to the DEX concept currency , it should be said that it has always been in a sideways state.I didn't expect that today I went straight up in a straight line, with a daily increase of 80%, becoming the most beautiful boy in the defi circle:Because of this increase, I also read more about the progress of this project, so here is a few words.The 0x protocol, the token ZRX, has risen so much, and the market value has only risen to 52. I guess many new friends don’t know much about this coin.The old leeks from 2017 should have some impressions, and some of them may still be stuck in: the old decentralized trading agreement, the order book model, and similar knc Loopring, which belong to the kind that are still alive but not in the hot center of the market .In fact, the earliest DEXs, like the ones mentioned above, were all order book transactions, that is, like central exchanges, which completed transactions by placing buy and sell orders and matching them. The problem with order books is that market makers are needed to provide liquidity. , like many exchanges now have robots as counterparty orders. If there is no such liquidity, the problem for traders is that if you place an order to sell one, no one will eat it for a long time. If you just drop it, the loss will be great, or you will buy at the bottom Also not enough quantity.If the experience is poor, there will be fewer traders, forming a vicious circle. At the same time, it is not enough compared with CEX. This is also a factor that made it difficult for many DEXs in the form of order books in the early days. Then AMM (automatic market making) began to appear. Business) mode, now mainstream DEX, Uniswap, sushi, curve, etc. are all in this mode. For each trading pair, only two fund pools need to be established, and the transaction pricing is adjusted through the fund pool ratio and algorithm.
AMM eliminates some experience problems of the order book on the chain. As long as you want to exchange, you can do it anytime, anywhere. With token incentives, people are prompted to provide more mortgages for various transaction pools, and the problem of lack of liquidity in DEX is also solved. Solve, like the Curve stablecoin trading pool, there are even a considerable amount of exchanges that we are familiar with that are converted on it, because its slippage and transaction costs can be made smaller than CEX.
Having said that, let’s talk about it again, although 0x still belongs to the category of order books, I think 0x has made a lot of improvements in the past two years.One of the main ones right now is the 0x API.
0x, I think it may not be just an exchange, it is an underlying protocol that can be embedded in various applications.You can understand 0x API as an aggregation transaction protocol on the chain. I don’t know if you have used some aggregation exchanges. It is equivalent to putting together the buying and selling orders of multiple exchanges, and the most suitable buying and selling price among them Provided to users, sometimes when there is a relatively large difference between exchanges, it can also be used to "move bricks".
On 0x, smart contracts can be used to integrate the best prices in the current market for buying and selling, and it doesn’t matter whether it is an AMM platform or a traditional order book model. Currently, the dex market is more aggregated, but look at a piece of information from the project party last year. , it seems that the liquidity aggregation on the chain and off the chain (central exchange) can be realized.
You can see some fundamental data of the platform on 0xtracker.com, as shown in the picture below is the record of interaction using their aggregation contracts:
Not only the 0x API, but many exchanges are also using the 0x protocol, such as Tokenlon, 1inch (it seems to be an aggregation DEX), and Matcha is an aggregation trading application made by the 0x team.The growth of his family's transaction data in the past year looks pretty good:Thanks to the defi boom, the transaction volume and protocol fees have increased significantly in the past month:Including his family's transaction volume, it ranks third in a DEX transaction data made by netizens:I don’t know if his family has this kind of aggregate transaction volume, which is not easy to calculate, so it is not displayed on mainstream data websites, but in fact there are still some fundamentals, not just saying that some new coins may just be exploded with limited chips Fried, so we also call it a "hidden treasure".In terms of chips, the token ZRX was mainly used for transaction payment at the beginning. Last year, the economic model was changed. Now one is a governance token and the other is staking mortgage distribution.Mortgage zrx weekly (1 epoch) can be divided into transaction fees, this part of the fee is given to ETH, now there are a total of 35 million coins mortgaged in the whole network (circulation 750 million), there are a total of 10 mortgage pools, these pools are Constructed by a larger market maker, the profit sharing ratio of each pool is different, and the income given is also different.Almighty netizens also gave a rate of return calculation:This estimate is based on last week’s data. The annualized rate of the most pools is above 15%. According to the situation of the platform and if the popularity of DeFi continues, it is expected to grow later.The above is almost what I have seen about 0x. There were a lot of messy things a year ago. I have seen this project in a rough way, and some of the above may not be very clear. Forgive me, I will update it later.AMM has impermanent losses. For more traditional market makers, it may be more suitable for them to make markets through aggregated transactions instead of mortgages. This is also the potential growth direction of this aggregated transaction, attracting more traditional market makers. Market makers join the chain.0x is relatively an old-fashioned project. After so many years, it can survive and continue to improve, which is a manifestation of its ability. In fact, the currency circle has been mixed for a long time, and it will be more favorable to long-term projects.
