Hydro Foundation to Fork 0x Protocol, Eliminate ZRX Token

The Hydro Foundation will fork 0x to increase the liquidity of the protocol.

“After much deliberation,” the Hydro Foundation has decided to fork the 0x protocol, removing the ZRX token in the process, CEO Tian Li revealed in a blog post.

Li, who is also the CEO of decentralized cryptocurrency exchange DDEX, noted 0x’s contribution to the growth of DDEX but pointed to “rudimentary problems such as order collision, front-running, and poor liquidity” as factors prompting the team to decide on a fork of the protocol.

The CEO further explained that the ZRX token would have to be removed as it would cause “unnecessary friction.” Essentially, the Hydro Foundation has rewritten “a large portion of the [0x] codebase,” creating “a new order schema, an engine capable of true matching, robust market orders, and a fundamentally different liquidity sharing model.”

The new protocol will be called Hydro, with its main focus being on increased liquidity. Hydro was initially designed as a thin liquidity incentive layer on top of 0x. The Foundation has decided to keep the name but expand the scope of the project. The fork will not feature an equivalent to the 0x token.

“The merit of the project will be defined by what we do in the months and years to come. DDEX will switch over to Hydro as soon as the new protocol is secured and audited. If the protocol doesn’t deliver, DDEX will be outclassed and quickly become irrelevant,” Li elaborated in last week’s post.

The ZRX token, which was recently listed on crypto exchange giant Coinbase, was trading at $0.296 at the time of writing after gaining just over 10% in the past 24 hours. Its market capitalization stood at $163.6 million, placing the asset at number 32 on the Coinmarketcap crypto chart.

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