Azoras
0x Project: ZRX Token – Bullish, Bearish, Catfish [Explained]
0x Project: ZRX Token [Explained] What’s up guys! In this video, I wanna talk about 0x Project and their governance token ZRX. What they do, what their token is, and whether or not I’m bullish on this long-term. And if you’ve been looking at 0x and ZRX, then make sure to watch because I’m going to be talking about where the value for ZRX comes from and one very important distinction to be made between 0x labs and the 0x protocol. New to buying crypto? Signup to Binance below (Not available in US): /> Get $10 FREE Bitcoin when you signup to Coinbase using my link below /> US Investors Get 2 FREE stocks worth up to $1850 when you sign up for WeBull using my link below: / UK investors get free shares in Interactive Brokers when you open an account using my link: 2 Get up to $100 FREE to spend on Fiverr gigs using my link below: y Follow me on Twitter (had it forever, just started getting into it!) s Sub to the channel 🙂 /> Azoras Merch s My Camera 4 My Children’s Book s One of the core themes I’m keen to be invested in for 2022 is middleware. Middleware is the operational infrastructure that supports applications. And if you’re betting on the growth of decentralised finance over the coming years, then it makes sense to be bullish on the infrastructure that powers DeFi apps. Now I may be a little bit biased given that I’ve spent the last decade building this kind of software in the traditional finance space, but I do feel that it often gets overlooked, even though it’s vital to the day to day operations of the apps we use. And when these things gain critical mass they usually end up with a monopoly over their vertical. So in my opinion middleware is one theme to keep a close eye on for 2022. And today I want to cover 0x project in particular. More and more trading is being done on decentralised exchanges, but given the number of Dexes out there and how they function, it’s only natural that there would be discrepancies in the price of any given token at any given time. This is where 0x comes in. 0x is a decentralised exchange aggregator API. What this means is that 0x aggregates decentralised exchanges, letting you trade across almost all Dexes so that you get the best possible price and liquidity when buying or selling DeFi tokens. Now the API part just means that 0x provides this infrastructure to dApps so that they can build on top of it. Of course, this is incredibly valuable to dApps which don’t want to waste time integrating with a tonne of decentralised exchanges. Instead, they can plug into one endpoint and offer their users the best trade prices. Leaving them to focus on building the core features that matter most to their users. Today 0x is used by MetaMask, DeFi Saver, RARI Capital, and Zapper. And that list is only going to grow as more builders begin to build in this space. But what’s the catalyst that’s going to drive the future growth of 0x? Well, the big one that I believe in is mainstream adoption. Credit to Adam Cochran for his megathread on ZRX which lead to this video and where he asks: When mainstream users join this space, where do we send them? The obvious answer is to wallets and aggregators like MetaMask, Zapper and Argent. It’s not like they can just jump straight into SushiSwap. So as more users come in, including retail and institutional, we can expect the volume transacted through 0x to increase. And ss they say, a rising tide lifts all ships. What about where 0x stands today? 0x did over $100 billion dollars in trade volume last year. And that figure is only going to grow as we get mainstream adoption. That sums up the bull case for 0x, but what about ZRX? It’s really important to make the distinction between 0x and ZRX. 0x Labs is the company and the project. ZRX is the governance and rewards token for the 0x Protocol. ZRX holders do not have control over 0x Labs. So how do ZRX holders benefit from the success of 0x? As far as governance and rewards go, these are pretty opaque when it comes to ZRX, which probably explains why the token price has taken a beating of late. The current market cap is about $400 million. Compared to SushiSwap which does similar trading volume and has a market cap of $800 million and you’ll see why I think ZRX has potential. But the big difference is that Sushi has a clear fee distribution model. So for ZRX to really take off, we need to see the team introduce a clear rewards structure for ZRX holders. At the end of the day it has massive potential, but we don’t know how much of that potential upside will be captured by ZRX holders.