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Paradex

Paradex

Paradex is a decentralized cryptocurrency exchange utilizing the 0x protocol for the exchange of ERC-20 tokens on the Ethereum blockchain.

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.

Architecture
Order matching

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.

Timeline

October 10, 2018
Transition to 0x V2 protocol (ZRX)

On October 10, 2018 Paradex transitioned from 0x V1 to the 0x V2 (ZRX) protocol.

May 23, 2018
Acquired by Coinbase

On May 23, 2018 Coinbase acquired Paradex. The financial details of the acquisition remain undisclosed.

Further Resources

Title
Author
Link
Type
Date

0X ($ZRX) Analysis and Valuation

Myles Snider

Web

A Look at Paradex’s Fee Structure and Implementation

Paradex

Web

Coinbase Acquires Paradex for Wallet to Wallet Exchanges! - Should Have Acquired Yen.io

May 31, 2018

Coinbase Decentralized Exchange Paradex Transitions to 0x V2 Protocol (ZRX)

Bitcoin Exchange Guide News Team

Web

References

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