Breaking news this morning points towards a brand-new partnership between ERC-20 ‘relayer’ Paradex, and famed cryptocurrency exchange
, Coinbase. Any partnership with Coinbase is treated as a big deal because as we know, Coinbase is a huge power in the cryptocurrency exchange world. Therefore, this is great news for Paradex which in turn, is even better news for the 0x cryptocurrency.
What is Paradex?
Paradex is a decentralised cryptocurrency
relayer. This therefore acts as a wallet to wallet token transfer system, that facilitates the direct transfer of ERC-20 tokens. In order to do this, Paradex uses the 0x Protocol. According to 0x protocol:
“In 0x protocol, orders are transported off-chain, massively reducing gas costs and eliminating blockchain bloat. Relayers help broadcast orders and collect a fee each time they facilitate a trade. Anyone can build a relayer.”
The benefits of this are that relayers can provide a trustless exchange
, reducing the risk between trades due to the distribution of the network. 0x provides shared liquidity and moreover, 0x is open source, this means users can trade directly with a known counterparty for free, or, alternatively can purchase services from relayers in order salvage some of their liquidity.
The Coinbase announcement has proved to be a big one for both the Paradex and the 0x team. According to Paradex:
“One year ago, this month, we set out to build the best decentralized relayer that empowers users with self-custodianship. A year later, we’re not only extremely proud of what we’ve achieved, but intensely optimistic about where our space is headed. Coinbase was our very first interaction with crypto, our gateway to the world of blockchain. Right from the beginning, they set a bar that the entire ecosystem, Paradex included, has aimed to reach. That drive toward quality, openness and adoption has really served as the foundation to this acquisition.”
How has this impacted 0x?
With the markets moving downwards, this announcement has had a huge impact on 0x. At the time of writing, 0x is valued at $1.26, up 11.74%. This is a significant jump up, moving 0x up towards its all time high of $2.39. Whilst this rise isn’t expected to last, it at least provides the 0x team with some optimism in this tumbling market.
Overall, this partnership will provide some really big things for the Paradex team and the team at 0x. Overall, Coinbase will also reap some benefits from this, if only through exposure to a new customer base. It’s an exciting time for all teams involved, that’s for sure.