Paradex is a decentralized cryptocurrency exchange utilizing the 0x protocol for the exchange of ERC20 tokens on the Ethereum blockchain that officially launched in Novermber 2017. On May 23, 2018 Coinbase acquired Paradex. The financial details of the acquisition remain undisclosed.
Paradex is a type of decentralized exchange known as a relayer and uses the 0x protocol "Matching Model". Paradex maintains an off-blockchain order book of the limit buy (takers) and sell orders (makers) made by traders. Compared to decentralized exchanges where all orders are placed on the blockchain, this method reduces the cost and time delay associated with placing every potential order (including unfilled and cancelled orders) on the blockchain.
Once orders are matched the transaction is completed on-chain using the 0x protocol. Paradex actually acts as the trade partner with both maker and taker simultaneously, acting as a relay between the matching orders. ERC-20 tokens are not continuously held in a large exchange wallet, thus reducing the risk of a hack stealing a large number of users funds held within a single exchange wallet.
Fees and gas costs
Paradex charges a trading fee of 0.15% on each side of the trader. The Ethereum Gas cost is passed to the user in the form of a transaction cost.
Transition to 0x V2 protocol (ZRX)
On October 10, 2018 Paradex transitioned from 0x V1 to the 0x V2 (ZRX) protocol.
0X ($ZRX) Analysis and Valuation
A Look at Paradex’s Fee Structure and Implementation
Choosing Paradex’s Relayer Model
Coinbase Decentralized Exchange Paradex Transitions to 0x V2 Protocol (ZRX)
Bitcoin Exchange Guide News Team
Paradex Aims to Facilitate Peer-to-peer In-Wallet ERC20 Token Trading
Toward a million markets... - Paradex - Medium
Documentaries, videos and podcasts
Coinbase Acquires Paradex for Wallet to Wallet Exchanges! - Should Have Acquired Yen.io
May 31, 2018
Crypto Tools of the Trade with IDEX, Ledger, AirSwap, Gnosis and Paradex
May 11, 2018
Paradex Show & Tell - Token Summit III NYC 2018
May 27, 2018
- Decentralized cryptocurrency exchangeA decentralized cryptocurrency exchange is an exchange market that utilizes blockchain or another decentralized technology to enable peer to peer transfer of digital assets without reliance on a trusted third party to hold funds.
- EthereumEthereum is an open-source, public, distributed blockchain computing platform featuring smart contract (scripting) functionality, which facilitates online contractual agreements.
- 0xProtocol for creating decentralized exchanges.
- ERC20 Token StandardERC20 is a token standard describing the functions and events that an Ethereum token contract has to implement.
- Smart contract (blockchain)A smart contract (self-executing contract, blockchain contract) is an agreement between parties that is enforced by a program encoded onto a blockchain which executes code exactly as originally written.