Connect with us


What is an Ox and What Is It For? A Detailed Guide for the Beginners

Ox protocol can be applied to various DeFi projects in the decentralized exchanges (DEXs), DeFi protocols, OTC (over-the-counter) trading desks, virtual services and assets, Shopify-like marketplaces and many other DeFi projects.

Claudia Fischer



Ox guide article


Ox protocol is a decentralized exchange (DEX) Ethereum-based protocol that eases the peer-to-peer exchange of ERC20 and other tokens on the Ethereum Blockchain. It was launched in 2017 and has been advancing with time. By now, Ox protocol has doubled its staff and made the world realize its worth in developing decentralized exchange and easing the transaction modules.

Ox platform aims to offer interoperability between the decentralized exchanges to support Ethereum-based and other, various crypto assets. These days, Decentralized exchanges are the go-to platforms for traders and investors due to lower fee structures and privacy concerns. Exchanges like UniSwap and Coinbase have made it easier for people to protect and trade their assets. This all happened just because of the Ox protocol that enables the developers to make decentralized exchanges based on their desired features.

ox protocol web interface

Is Ox Different From Other Decentralized Finance (DeFi) Projects

As DeFi is expanding rapidly, countless DeFi projects are being introduced in the crypto market. But, Ox has some specific set of tools which distinguishes it from the rest of DeFi projects. Ox enables the developers to develop a decentralized exchange for accurate and efficient trading by a liquidity aggregation tool.

Secondly, the Ox protocol has a specific tool named Matcha which serves as a reliable search engine for trading over DEXs. Another distinguishing feature of the Ox protocol is that it supports both non-fungible (ERC-723) and fungible (ERC-20) tokens. Moreover, it integrates all DEXs to simplify the trading process for the users who have to work on multiple exchanges.

Related: What is DeFi? A Complete Guide to Decentralized Finance for Beginners

Ox protocol can be applied to various DeFi projects in the decentralized exchanges (DEXs), DeFi protocols, OTC (over-the-counter) trading desks, virtual services and assets, Shopify-like marketplaces and many other DeFi projects. 

How Does Ox Protocol Works?

Ox protocol utilizes smart contracts to make Decentralized Exchanges (DEXs) which are open source and publically auditable. These smart contracts work collectively to develop a flexible and frictionless trading protocol weaved into the products. The token swapping code is available on the 0x homepage for exchange makers to easily copy and paste into their platform.

The system runs on a token named ZRX, using nodes called relayers to manage orders off-chain. These nodes provide apps for users to see, create, and cancel transactions using ZRX tokens as fees.

On What Ox Platform Works?

Ox uses Ethereum’s secure Blockchain technology for its platform. Version 3 smart contracts underwent audits by third parties like ConsenSys Diligence to find and fix any potential weaknesses. A vulnerability in version 2 was discovered and fixed by the 0x team before any harm was done. They still reward bug finders to keep their system secure.

Ox Protocol’s Native Token-ZRX

The native token of Ox protocol is ZRX by which holders can vote on the desired proposals when Ox proposes the new development. Each token represents one vote which acts as an incentive for the holder and can be stored in the Ox wallets.

Related: What is Blockchain Technology? A Step-by-Step Guide

Meanwhile the voting, all of the ZRX tokens are locked upon the deciding the final results. It is important to note that all of the ZRX holders are directly affected by the changes carried out by the Ox protocol managing team. Moreover, users can stake their ZRX tokens in liquidity pools to earn the rewards.

Flaws of Ox Protocol

Just like other protocols, Ox protocol does have some sort of flaws in its system. There are a few voting aspects which need to be more justified, systematic and governed. It is believed to keep things on track, Ox protocol needs to make money while monetizing the liquidity. However, Ox team will need a lot to make things right to cope with the flaws.

Final Verdict

Ox is has a good reputation in DeFi and DEXs. Matcha and other tools help connect different systems. 0x Labs gives developers tools to make exchanges and easy Ethereum-based token swaps. It’s worth watching 0x as a strong competitor in the decentralized exchange world, though who’ll be the ultimate leader is still uncertain.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *