0x Labs debuts ‘gasless’ swap API used by Robinhood, Coinbase Wallet

The new product matches a general shift to a focus on “intents” in DeFi

article-image

0x and Adobe Stock modified by Blockworks

share

DeFi software firm 0x released an application programming interface, or API, that allows exchanges to abstract gas fees away from users. The so-called Tx Relay software was previously used in beta by platforms including Robinhood and Coinbase to enable “gasless swaps.”

Users still pay for gas with 0x’s API, but the software lumps the fee into the trade cost to reduce the number of failed trades. Tx Relay is emblematic of a larger shift from many developers toward intents-based systems that outsource some on-chain actions to protocols.

0x sells APIs focused on decentralized exchange (DEX) infrastructure. The San Francisco-based firm has notable venture ties, raising a $70 million Series B in 2022 led by Greylock with participation from Pantera, Brevan Howard and Coinbase Ventures. 

Robinhood’s crypto wallet began using Tx Relay API as early as March 2023. At the time, 0x said the software would make onboarding easier by obscuring gas fees and protecting users from maximal extractible value (MEV). Arbitrageurs making use of MEV can frontrun users’ transactions to profit off of things like price slippage.  

Matcha, a DEX aggregator built by 0x, also used Tx Relay in its beta phase, as did Coinbase for its wallet. 0x says Matcha was able to reduce failed trades by 85% compared to competitors after rolling out Tx Relay-based “Matcha Auto.”

“Gasless swaps have helped us create a simpler trading experience, where users can focus more on trading and less on network fees,” Coinbase wallet production manager Claudia Haddad said in 0x’s documentation on the API.

DeFi has lately seen a UX-focused shift toward intents-based systems, where users will say what trade they want to execute but not necessarily how the trade should happen. Instead of dealing with wrapped tokens or gas fees, users can tell a protocol to swap one token on one chain for a different token on another chain and let the software handle the rest. 

The marquee DEX Uniswap dipped its toes into intents with the release of UniswapX.  The protocol uses an auction process to execute intent-based gas-free swaps. 

Tx Relay is similar in consequence to intent-based systems, Theo Gonella, 0x’s director of product management, said in a direct message. 

“[I]t’s basically an intent based system with one single solver (0x, which fetches best AMM prices and connects to leading DEX Market Makers),” Gonella wrote. Solvers are the entities that carry out user intents in a blockchain context. 

Intents pare down the number actions users need to take on-chain. Obvious questions emerge as to who is handling the intents and what they do behind the scenes — but many see intents-based systems as a necessity to make crypto user-friendly.

“Almost nothing about the current blockchain UX will be acceptable for broader adoption,” Kevin Weaver, backend engineer at blockchain platform Metropolis, said in a text. “As long as an intent is designed in a way that doesn’t introduce new trust assumptions, I’m a fan of doing whatever we can to smooth out the rough edges.”


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit