The 0x Protocol v3 Upgrade Looks to Advance on DEX Liquidity and ZRX Staking

Cryptocurrency and blockchain projects need to keep evolving at every possible occasion. The 0x project, which still goes by largely unnoticed, is preparing to integrate several crucial changes. Particularly the new staking mechanism and DEX liquidity aggregation are worth checking out. It is now up to ZRX holders to vote on whether or not this upgrade will go into effect. 

The Vote For 0x V3

Different cryptocurrency projects will introduce their appropriate upgrades through a variety of manners. When that currency is not minable like Bitcoin, more creative solutions need to be utilized whenever possible. In the case of 0x, the vote to implement v3 of the protocol will occur by the holders of the native ZRX token. They will cast their vote, and if approved, the new version will be implemented on the Ethereum mainnet in late November 2019. 

This is very different from how proof-of-work-based cryptocurrencies introduce upgrades  Miners are the ones determining whether or not the upgrade is necessary. Everyone else simply has to follow the majority’s decision, a concept that has caused many debates and fraction in the past. The approach by 0x is very different, but it is only possible because it is a network running on top of Ethereum. Once the voting process begins, users will be able to follow its progress live. 

Some Crucial Upgrades

As is the case with any protocol change or improvement, there will be some noteworthy changes for all users. The main purpose of this iteration is to expand upon the liquidity for DeFi, as well as decentralized exchanges. That latter part is well worth keeping an eye on, considering how DEXes are playing an increasing role of importance in this industry. 

Another crucial development to be voted upon is whether the new ZRX staking mechanism should be deployed. Given how the project is public infrastructure, the staking of tokens plays a crucial role Bringing more liquidity into the network is beneficial to stakers or users of staking pools as well. More tokens give holders more “clout” in terms of determining the development of the protocol as a whole. It remains a very tight rope to walk upon, considering how token holders that delegate automatically give half their voting power to the current market maker running the staking pool. 

The Bridge Contracts

Perhaps the most intriguing feature of this network upgrade – from a technical point of view – is how the 0x developers aim to introduce bridge contracts. This is part of the DEX liquidity process. It would merge liquidity from not just 0x but also other networks  -such as Kyber and Oasis – into one “stream”. This is a major step forward regarding the development and future of decentralized trading platforms in the cryptocurrency industry. 

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