Growing DeFi with the help of professional market makers: 0x’s new Request for Quote system

This article was first published on 0x Blog - Medium

Growing DeFi with the help of professional market makers

The new Request for Quote system by 0x


  • The growth of DeFi has been possible because of the major improvements in DEX liquidity in 2020
  • DEXs today support small trades well, but struggle to provide competitive pricing for medium & large trades
  • 0x’s new Request for Quote (RFQ) system allows professional market makers to bring CEX liquidity directly to DEX users to support great pricing for medium and large trades
  • Get started today: RFQ documentation

DEX growth and the rise of aggregators

It’s an exciting time in crypto. There are $6 billion locked in DeFi protocols, and DeFi’s roaring growth has pushed DEX trading well over $2 billion a week! To give you some perspective, that is 5000% growth when compared to 2019’s total volume traded of around $2.3 billion for the entire year.

The incredible growth of DeFi wouldn’t have been possible without some of the key upgrades to DEXs over the past 8 months. The biggest trends have been a deepening of DEX liquidity in AMMs across a wide set of commonly traded pairs as well as a move towards DEX liquidity aggregation.

Automated market makers have made large strides in 2020. Curve has unlocked powerful stablecoin trading, Balancer has allowed new pricing strategies to be tested, and Uniswap’s V2 has become a go-to destination for new token teams looking to bootstrap liquidity. The innovation across these protocols has attracted new capital spread across all 3. This has been great for users because deeper liquidity means better pricing, but as liquidity has been spread across a larger set of protocols, users and applications have had a harder time locating the best price. The good news is that DEX liquidity aggregation has popped up to solve this exact problem. DEX liquidity aggregation ...

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0x Blog - Medium

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