0x Labs Launches 'Zero Gas Fee' Exchange API, Adopted by Robinhood and Coinbase Wallet

A Leap in DeFi

Convenience DeFi software titan 0x introduces a groundbreaking API, revolutionising how exchanges manage gas fees. This innovation, known as the Tx Relay software, allows users to engage in "gasless swaps," a method previously beta-tested by industry giants Robinhood and Coinbase.

In this novel approach, the 0x API cleverly integrates gas fees into the overall trade cost. This strategy not only simplifies the trading process but also significantly slashes the incidence of trade failures. The Tx Relay software stands as a beacon, illuminating the path towards an industry-wide transition to more user-intuitive, intents-based systems. These systems streamline the trading process by delegating certain blockchain actions to protocols, thereby enhancing user experience and efficiency.

0x, a San Francisco-based entity, is not just any firm. It boasts an impressive portfolio, specialising in APIs designed to fortify the infrastructure of decentralized exchanges (DEX). A testament to its prominence is the substantial $70 million it amassed during its Series B funding round in 2022, drawing support from notable entities like Greylock, Pantera, Brevan Howard, and Coinbase Ventures.

The journey of the Tx Relay API is remarkable, with its early adoption by Robinhood's crypto wallet as early as March 2023. 0x's vision for this software was clear from the start: to streamline the onboarding process by camouflaging gas fees and shielding users from the pitfalls of maximal extractible value (MEV). In the cutthroat world of crypto, where arbitrageurs prey on unsuspecting users by exploiting factors like price slippage, this protection is invaluable.

Matcha, a DEX aggregator birthed by 0x, also embraced Tx Relay during its beta phase, mirroring a similar move by Coinbase for its wallet. The result was nothing short of phenomenal. Matcha, armed with the Tx Relay-based "Matcha Auto," witnessed an 85% plummet in trade failures compared to its rivals.

Coinbase wallet's production manager, Claudia Haddad, extolled the virtues of gasless swaps facilitated by this technology, highlighting the seamless trading experience it offers. Users can now trade with an undivided focus, unburdened by the intricacies of network fees.

The industry is steadily marching towards a user experience (UX)-centered paradigm, favoring intents-based systems. In this paradigm, users articulate their trading desires, leaving the intricate mechanics of the trade to the ingenuity of the software. Such systems epitomize the essence of user-friendliness in the often convoluted world of crypto trading.

Uniswap, a leading name in the DEX realm, recently flirted with intents by unveiling UniswapX. This protocol, characterized by an auction process, executes intent-based, gas-free swaps, echoing the user-centric ethos of Tx Relay.

Theo Gonella, 0x's director of product management, equates Tx Relay to an intents-based system with a unique twist. It acts as a solitary solver, seamlessly fetching the most competitive prices from Automated Market Makers (AMM) and liaising with leading DEX Market Makers. Solvers in this context are the linchpins that actualize user intents within the blockchain framework.

The pivot to intents-based systems is not just about reducing the number of steps users take on-chain. It raises fundamental questions about the stewards of these intents and their actions in the backdrop. However, many within the industry view this shift as a critical step in rendering crypto more accessible and user-friendly.

Kevin Weaver, a backend engineer at the blockchain platform Metropolis, candidly expresses that the current blockchain user experience (UX) falls short of the standards required for widespread adoption. However, he remains optimistic, advocating for intents designed to preserve trust, viewing them as instrumental in ironing out the complexities that currently mar the blockchain landscape.