DeFi and NFTs. These are the two hot buzz words circulating around the crypto space, and they are hot topics in this bull market, especially NFTs. However, there is another buzzword that has also been circulating around, just not as often. Nevertheless, this topic is to prove crucial to not only the survival of the entire crypto ecosystem but its ability to thrive and replace the old worn-out, centralized system. We are talking about interoperability.
As it stands, many smart-contract blockchain platforms such as Ethereum, Binance Smart Chain (BSC), Polkadot, Cardano, Solana, Avalanche are isolated from each other. Meaning that neither they nor the Decentralized applications (Dapps) that are built on top of them are able to communicate, much less interact with each other. This severely restricts the crypto sector’s ability to see mass adoption. But, that is quickly changing. Many of the said blockchains are already interoperable and establishing bridges with one another, allowing users to easily send tokens and even NFTs between blockchains without issue.
As a consequence, any Dapps are quick to utilize these bridges in order to gain a massive competitive advantage. One of these is actually ahead of the curve as it already established three key active bridges with Ethereum, Avalanche, and Binance Smart Chain (BSC), with a fourth one just around the corner. Because of the massive hype surrounding many other projects, this one is relatively very new and unknown but is already laying the foundations for a strong future.
What project is this, you might ask? That would be Zero Exchange, recently rebranded as 0.exchange. It is a multi-chain decentralized exchange (DEX) built on the Avalanche platform that is active with a clear roadmap on where it wants to go and do. This 0.exchange review will outline all the details about the potentiality of this project. We will discuss its strong fundamentals, its dedicated team and community, what plans it has for the future, who its competitors are and why this could be a hidden gem that you might want to keep your eyes on.
What is 0.Exchange?
According to their Whitepaper, ‘Zero Exchange (now recently rebranded as 0.exchange) is a fully decentralized protocol for automated liquidity provision on the Avalanche blockchain.’ They seek to be THE bridge connecting various blockchains whilst supplying liquidity and paying fees for liquidity providers to support arbitrage trading on all blockchains. Moreover, like any Dapp, it will be a community-driven, profit-sharing network for all participants.
Now you may already be thinking that this is just another fork copy of Uniswap. Well, that is not entirely true. Yes, Uniswap is the standard version when developing a DEX. However, the Alpha DEX is constrained only to Ethereum. Ethereum’s high gas fees are, in many ways, holding it back. 0.exchange has none of these issues. In addition, it even has plans to include a groundbreaking feature that could transform it into an innovative power hub. More on that in a bit.
The project is very new to the crypto space, having been launched and its token in circulation since January 19, 2021, according to Coingecko. However, it wasn’t until February 2 when the app became live. It started off with having only one bridge, with the Ethereum blockchain. But, on March 2, it was announced that a third bridge would be established with Binance Smart Chain, which went live a few days ago. But, they did not stop there. The team behind the project is hard working on establishing a fourth bridge with another, well-known blockchain platform. Who would that be? None other than Polkadot. While news of this bridge has been around since mid-February, In a recent blog, the team asserted that the bridge would be launching soon.
In addition to all this, on March 9, a partnership between 0.exchange and Indacoin allowed users to purchase its native token, ZERO, right on the app itself by using credit cards!
So, one can see that its team has been very hard at work on expanding the project, which is something you would want to see in any startup project. And they are not done yet, not by a long shot.
How Does 0.Exchange Work?
The dapp is colorful and simple in design, which makes it user-friendly. Similar to Uniswap, when you open the app, you have the swap interface section that allows you to well swap tokens.
But, if you’ll notice, there is another additional feature on the right side. That is the Cross-chain interface, where you can swap tokens between different blockchains. This means you can send ERC-20 tokens on Ethereum to either Avalanche or BSC and vise versa. The cross-chain wraps the token in accordance with the code of that blockchain you are transferring your token too. This can only work if there is liquidity being provided for it.
Just like any regular on-chain swap, you simply choose from which blockchain to which blockchain you want to send your token to, choose the token that is in your wallet, ensure you have the necessary fees to pay for the transaction, and there you go! It is that simple.
The DEX allows you to use various wallets, mainly those that support WalletConnect, but also Coinbase Wallet, Portis, Fortmatic, and Metamask. The most convenient is Metamask because it allows you to add the Avalanche and BSC mainnets on it, giving you the ability to switch between them. What is cool about 0.exchange is that it automatically does that for you on the app.
Native Token & Tokenomics
Their native token is ZERO. The maximum supply is 1 billion tokens. Now, here is the most interesting part. ZERO tokens reside in all three current blockchains it has a bridge to. This means that you can easily buy ZERO on either the Avalanche, Ethereum, and/or BSC blockchains.
Because the project was launched a few months ago, there are only currently three places you can get some ZEROs. The first and most obvious place would be the 0.exchange platform itself. You can hop on to any of the three blockchains and swap your token for ZEROs. OR, you can purchase some by using your credit card. A fair warning, though; you will be required to do some KYC.
The other two places are Uniswap and the centralized exchange Bithumb Global.
According to their Whitepaper, when the DEX was launched, the token was allocated to certain specific dapps and blockchains to provide liquidity.
10% of all ZEROs was allocated to the team with 1-year vesting, 10% was allocated to Uniswap for liquidity mining, 25% was allocated to Avalanche for liquidity mining, 50% was allocated to future blockchain launches (this includes Polkadot & Kusama), 0.25% for community contests, 0.75% to initial Uniswap liquidity, 1.5% to holiday airdrops and 2.5% for marketing & communication purposes, with one year vesting period.
Users who provide liquidity on the DEX receive both ZERO and fees earned in proportion to how much liquidity they provided.
Additionally, ZERO is also a governance token. Anyone holding ZERO will be able to participate in help govern its network. As for the specifics, that was not outlined on their Whitepaper, and it is still under development. What little information we have is that the governing system will be similar to Uniswap, but with one distinct difference, which will be discussed further below.
If you are dying to know just who the founder(s) is and the team are behind this seemingly amazing project, unfortunately, nobody knows. The team and founder of the 0.exchange have chosen to remain anonymous.
What little we know of that the Lead Developer of 0.exchange goes by the pseudo-name of @GramCustodian on Twitter. Other than having attended an AMA meeting with Clubhouse in March, there is little information about him.
Who is This Multi-DEX Platform For?
The DEX is for users who wish to provide liquidity and earn fees, those who need to transfer funds across different blockchains, and those who wish to participate in governing the network.
The biggest group by far will be the everyday users who have a need to transfer funds in between blockchains instead of having to go ‘around’ by purchasing the local token on a centralized exchange, sending funds into it, buying the token, then transferring it out to your other wallet. Why do all of that when you can simply use cross-swap between blockchains in an instant?
Future Developments, Partnerships & Announcements
And now we get the juicy part of this review. As previously stated, the 0.exchange team has been hard at work in developing strategic partnerships and developments. The amount of work being done is quite impressive, considering the project has only been around this year and shows the team’s dedication to the DEX.
On March 19, 2021, it was announced that Bridge Mutual had partnered up with 0.exchange. Bridge Mutual is a decentralized insurance platform on the Polkadot chain. This would allow users using 0.exchange to pay for coverage for smart contracts, stablecoins, and exchange failures. The highlights of this partnership include;
- The bridge will create a pool for ZERO on our platform, and users will be able to deposit funds into the ZERO pool during our coverage liquidity mining event (this is pre-launch).
- Zero will integrate Bridge's coverage widget directly into the Zero platform, allowing its users the ability to easily purchase or provide coverage to various assets directly from Zero's interface.
- Zero will contribute a portion of its own funds into Zero's coverage pool on Bridge Mutual, which is a show of good faith to its community as it allows for community members to purchase coverage policies against Zero in the event of a hack, exploit, or rug pull which leads to permanent loss of funds.
Additionally, in @GramCustodian’s AMA meeting with Clubhouse, he confirmed that 0.exchange is currently developing its own customized wallet. The idea behind it is to improve the user experience. A customized wallet would allow users greater access to the dapp via their smartphones. In addition, one of the most used wallets, Metamask, is not the most compatible.
While Users are able to add the BSC and Avalanche blockchain, there are few issues that can be confusing to newcomers. For starters, whenever you hop on to the BSC mainnet, you can clearly see any BEP-20 tokens you have, including your BNB that you need for transaction fees. Now, you would expect the BNB logo to show, but instead, you see the ETH logo, which can be confusing. In addition to that, every time you want to perform a cross-chain swap, you will first need to reset your Metamask. The consequence of this is that the reset will terminate all transaction history. It is also a bit annoying to have to do this every time. It is hoped that the new wallet will remedy these inconveniences.
Another major announcement was that 0.exchange was going to hold its first IDO with BSCPad, Binance’s decentralized launchpad for projects on the Binance Smart Chain. What is really surprising is which project they will be doing their IDO for, and that was for WallStreetBets (WSB)!
It should be noted that WSB is not one person or a small group of people. It is a community of retail investors who come together and strategize on how to invest in stocks and even cryptocurrencies. With that in mind, what the WSB Dapp is is an anti-market manipulation experiment. The idea behind it is for people to come together and vote for an investing strategy. Once it is decided, votes would be placed and recorded on the blockchain for transparency. Once the strategy was implemented, all profits generated, if any, would go to both the investors who partook in it, as well as the DAO itself, allowing it to self-fund.
It was initially agreed that the dapp was to be launched on BSCPad in the coming weeks, while 0.exchange was to hold an IDO in support. However, on April 2, 2021, it was announced via their telegram that WSB was going to withdraw its dapp from being launched on BSCPad due to an infringement of sensitive information leaked out by the decentralized launchpad. As it stands, based on a conversation in both WSB and 0.exchange telegrams, it appears that the IDO is still going to proceed as planned, although this is still to be confirmed.
Now, you might think this is a setback for the DEX. However, on the same day, either as a direct consequence of this or by coincidence, 0.exchange announced that it would be accepting submissions from projects that want to launch their tokens with them. Essentially, it is expanding to become a launchpad for other projects wishing to take advantage of the DEX’s increasing network between different blockchain platforms! This announcement demonstrates, at least to this writer, the team’s ability to adapt and think well into the future.
Lastly, but not least, and it is what makes 0.exchange different from other traditional DEXs, is its plan to have an NFT (non-fungible token) marketplace. Its development has been in the works since the beginning. It is in their Whitepaper as well as in recent blog news. The details about this marketplace are still vague, but from what this writer was able to gather on their Telegram is that users will be able to swap NFTs across different blockchains in the same way as you can with tokens in order to buy and sell them in this marketplace. Because of the current hype surrounding NFTs, this writer cannot emphasize enough how huge this news is.
Overview of Features
When it comes to actually using the DEX, users have access to Avalanche, Binance Smart Chain, and Ethereum. Depending on which one they use, the user will have to pay transaction fees. For example, if you are on Avalanche, you will have to pay fees using AVAX. For users using Avalanche or BSC, trading fees are cheap, and transactions are fast. But when using Ethereum, you will have to pay those god-awful high gas fees.
Currently, the cost of paying for cross-chain swaps is pretty high and also confusing. For example, when wanting to cross-chain swap from BSC to Ethereum, you will need to pay 0.50 BNB for it, which is currently $174.30! When cross-chain swapping from Avalanche to BSC or Ethereum, the fee is 4.99 AVAX, which is $160. Now, there is the confusing part and another Metamask error. If you want to cross-chain swap from Ethereum to either BSC or Avalanche, it will say on the dapp that the cost for this swap is 4.99 ETH, which at first glance, is up to $10,520!! However, this is an error. The 4.99 ETH cost is actually how much you will have to pay in the value of AVAX. Meaning that you will need to pay $160 in ETH, which amounts to 0.07 ETH.
This confusing is another example of why the team is an attempt to develop its own customized wallet. Although they don’t want to replace Metamask, they do hope it will make things easier for the user to navigate.
As to why these cross-chain swap fees are so high, according to their telegram group, the cost of cross-chain swapping between all three bridges is to spread out among all three in order to balance it out. Because gas fees on the Ethereum network are so high right now, the great majority of those transaction fees are coming from Ethereum.
When it comes to swapping tokens, 0.exchange implements a finality on transactions, allowing them to be processed extremely fast at the price you want to pay. Additionally, the DEX prevents front running by having the dapp receive transactions in the order that it receives. So, whoever presses the “send” button first will have their transaction processed first.
0.exchange seems like a great project. However, they are not the only project striving to implement interoperability between different blockchains and gain a piece of the market.
One notable competitor is ZeroSwap. It is another decentralized multi-chain DEX that was launched in October 2020 and could give 0.exchange a run for its money. They currently have bridges to Ethereum, BSC, and Elrond, with more on the way. Two key traits are its claim to have gasless transactions by using transaction fee mining. Basically, the DEX will bootstrap gas fees and mine Zee tokens, its native token, every time a transaction is done, which will be used to pay for those fees. Secondly, it also claims to have zero fees on trade, although how they plan to do this is unclear.
While this is interesting, ZeroSwap has yet to launch its exchange app, so users cannot yet swap tokens within the same blockchain. However, they can cross-chain swap between BSC and Ethereum only. In addition, you can stake your ZEE tokens and even participate in upcoming projects via IDOs in their ZeeDo program.
Another competitor is Polkaswap, a non-custodial AMM DEX for the Polkadot and Kusama blockchain. It is being built on the SORA network. Although it has yet to launch its mainnet, it has plans to be fully operational between Q1-Q2 of this year with a bridge to Ethereum and a security audit being completed with that time frame. Between Q2-Q3, it will have additional advanced features, including launching Polkaswap V2. Like 0.exchange, it has no plans to have an ICO or any private sales.
Lastly, we cannot talk about competition without discussing its parent DEX, Uniswap. The OG DEX recently released its roadmap for its up-and-coming version 3, which could cause its token UNI to go parabolic again. This is not including the amount of attention the original DEX can attract at the expense of other DEX’s like 0.exchange. Moreover, considering that 0.exchange is mostly a fork of Uniswap, the latter’s new version 3 will make its previous versions outdated.
This means that if 0.exchange wishes to have a competitive advantage, it is more urgent for the team to continue fostering innovation instead of merely copying what Uniswap had already implemented. This especially includes 0.exchange’s upcoming governance protocol.
For additional information on Uniswap V3, please click here.
This article has thus far praised 0.exchange. However, it would be an injustice to also not discuss the potential risks involved. Although the DEX and its team have been making great strides, there is still no guarantee that it will succeed. After all, what’s the use of having these development and strategic partnerships if no one is using them? These partnerships and development will allow for greater usage, but unless people actually see the value in it, it means nothing.
Another that could be concern for potential investors is the anonymity of the team. Many projects turned out to be nothing but scams and rug pulls with no one able to know who the scammers were. This, unfortunately, may deter potential investors and believers the confidence to invest in 0.exchange. However, there are two things that you should be aware of.
Firstly, scam projects can only last for a few days or weeks. Scammers will want to get in and get out as quickly as possible. 0.exchange has been around since January 2021, with over $600 million in trade volume and more than $ 7 million in liquidity as of April 3, 2021. The project also has thousands of dedicated members who believe in the project. In addition, GramCustodian, while no one knowing his identity, has been exposing himself via AMA meetings. Secondly, for any potential investor, you will need to ask yourself, is this really a concern?
Well, that depends. Other dapps, platforms, and crypto coins have seen success despite their founders remaining anonymous. Some of these are Sushiswap, THORChain, Monero, and the best example, Bitcoin.
Apart from that, it needs to be said that it will take some time for this project to mature, and some are beyond the team’s control. Currently, the only blockchains with a lot of activity are Ethereum and BSC. Dapps and other projects are still being built on Avalanche and Polkadot, severely limiting their usage as well as 0. exchanges.
Binance and Polkadot have their own bridges to Ethereum, which users can just as easily use. This spreads the number of clients throughout these other platforms, reducing 0.exchange on reaching its full potential. It will take some time before the dapps on Polkadot and especially on Avalanche are up and running, giving 0.exchange much greater leverage. With that said, potential investors should note that investing in buying ZERO should be seen as a medium to long-term investment. While there might be a few pumps in price, don’t expect a 10x gain in the next few weeks.
0.Exchange Review – Conclusion
0.exchange has a lot of potential to be a top crypto exchange. It has made a lot of strives in terms of strategic partnerships and forward-thinking. It seems to have a solid team, and with a dedicated community, the DEX appears to be ready to tackle whatever issues or obstacles it comes across.
Nevertheless, there is still much work to be done. It faces stiff competition from other DEXs for limited resources, attention, and mass adoption. A lot of their projects and features for the DEX still remains to be released, so only time will tell what will be become of it.
- Ease of Use
- New project with lots of room to grow
- Solid team with a clear roadmap
- Low market capitalization- highly likely to massive gains
- In a strategic position to provide liquidity on various blockchains
- Passionate and dedicated community
- Being a new project makes investing in it very risky
- Low activity on Avalanche and Polkadot discourages users from crossing into these blockchains
- Is not suitable for short-term profits. Expect long-term gains.
- Faces competition