c0x

What is c0x?

c0x is the 0x protocol used as collateral on the Compound platform. 0x is an infrastructure protocol facilitating decentralized exchange of ERC20 tokens and various assets across different blockchains, including Ethereum. It relies on open-source, auditable smart contracts to create a flexible, low-friction trading protocol seamlessly integrated into developers' products. Widely adopted by companies developing web3 applications like wallets and decentralized exchanges (DEXes), the protocol has been utilized by hundreds of developers and has facilitated over $200 billion in trading volume. The protocol is fueled by the ERC20 governance token ZRX, enabling holders to actively participate in protocol governance and influence changes to the protocol and its community treasury.

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Recent Video Interview

Main points of the interview:

• Compound allows users to earn interest on crypto assets by lending them out or borrowing against them without intermediaries.
• Compound's automated interest rates adjust based on supply and demand, optimizing returns for lenders and borrowers.
• The protocol uses smart contracts on the Ethereum blockchain, ensuring transparency and security.
• Notable features include liquidation mechanisms to maintain collateralization and governance tokens (COMP) for decentralized decision-making.

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Benefits of 0x

Unlike many other Ethereum decentralized exchange protocols, 0x stands out by supporting both fungible (ERC20) and non-fungible (ERC-721) tokens. This versatility allows for the permissionless trading of a broad spectrum of assets, enabling users to buy, sell, and exchange various Ethereum assets through numerous applications. The 0x protocol is adaptable to diverse use cases, including eBay-style marketplaces, OTC trading desks, exchange functionalities for DeFi protocols, and traditional decentralized exchanges.

Beyond its primary use in exchange products, 0x can be integrated into platforms where asset exchange serves as a secondary feature, such as in-game purchases and portfolio management platforms. In the 0x protocol, liquidity takers pay fees using ZRX tokens, incentivizing market maker liquidity. Users are also required to pay a protocol fee in Ether (ETH) to cover transaction gas costs. Notably, 0x, being an open-source protocol, does not take a share of these fees; instead, it relies on unlocked ZRX tokens from team and developer incentives, as well as its initial ICO funding for support.

What is Compound?

Compound is a decentralized finance protocol that enables users to lend and borrow cryptocurrencies against their crypto assets. Built on the Ethereum blockchain, it is an open-source platform that facilitates the exchange of cryptocurrencies through a series of smart contracts which automatically adjust the interest rate based on supply and demand.

The main goal of Compound is to create a more efficient and accessible global financial market, allowing users to easily and securely earn interest or take loans without the need for traditional intermediaries like banks.

Compound and Decentralized Finance

Compound is an integral part of the burgeoning DeFi ecosystem, which aims to revolutionize traditional finance by removing intermediaries and providing decentralized, transparent, and accessible financial services.

By enabling users to lend and borrow digital assets with minimal hassle, Compound opens the door for various other DeFi applications, such as:

• Liquidity Provision: Projects like Uniswap or Balancer rely on liquidity providers, who can leverage Compound to supply or borrow tokens necessary for specific pools.

• Leverage Trading: With borrowing capabilities, traders can use DeFi platforms like dYdX or Aave to access leveraged trades using their borrowed assets.

• Yield Farming: Users employ various strategies to maximize their returns, often involving lending and borrowing across multiple platforms, including Compound.

Compound's position as a fundamental DeFi protocol enables it to contribute to the broader ecosystem. Its integration with other platforms like MakerDAO and Curve Finance demonstrates its ability to complement and collaborate with peer projects, ultimately expanding the overall DeFi landscape.

Team Background

The Compound team comprises experienced professionals in the fields of software development, finance, and blockchain technology. Founded in 2017 by Robert Leshner, an economist and entrepreneur, and Geoffrey Hayes, a computer scientist, the company has grown significantly since its inception. Robert Leshner serves as the CEO, with a background in traditional finance and a strong belief in the potential of decentralized finance to revolutionize the global economy. Geoffrey Hayes, the CTO, has extensive experience in software engineering and has played a pivotal role in the development of the Compound protocol.

The team's expertise and commitment to building a world-class decentralized finance platform have been instrumental in establishing Compound as a frontrunner within the DeFi industry.

Current and Upcoming Projects

One of the most significant upcoming projects for Compound is the Compound Chain. The new blockchain, dubbed "Gateway," aims to connect various crypto ecosystems and enable cross-chain transactions, thereby expanding the reach of the platform and supporting the overall growth of decentralized finance.

Compound intends to continually evolve its platform, developing new features and improvements in response to community feedback, market factors, and technological advancements. By fostering collaboration, innovation, and growth, Compound aims to maintain its position as a leading DeFi platform and contribute to a fairer, more accessible financial landscape.

c0x Price Analysis

As of November 25 2024 c0x has a marketcap of $1.5M. This is {{percentagefromath}} from its all time high of $0.282705. In terms of its tokenomics, there's a total supply of 147M with 100% currently outstanding. Keep in mind c0x has a fully diluted value of $1.5M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.