0x, a decentralized exchange infrastructure company, announced the acquisition of Rival Flood, a move that says that the company will help it compete in the hyper competitive aggregation market.
Decentralized – or DEX exchanges – are the cornerstone of the DEFI ecosystem. They allow blockchain users to exchange between assets without the need for an intermediary or an intermediary, such as a centralized exchange.
The aggregators like 0x are a one -stop shop for traders, looking for all DEX to find the one that offers the most profitable trades, for a low amount. Competition is fierce and often exists on thin margins of the razor.
It was the Flood owner aggregation software that has motivated the acquisition, said Amir Bandeali, CEO of 0x, told Coindesk in an exclusive interview.
0x uses its own commercial simulation technology to check to what extent its aggregation software operates compared to its competitors, said Bandeali. “We were also able to take a look at the floods and carry out similar types of tests and we were very impressed by the data we have seen.”
“Everything was made from zero,” said Francesco Baccetti, co-founder and CEO of Flood. “We have rewritten the whole battery to get this level of performance that we have now.”
The acquisition is the first of 0x since the foundation of the company in 2017. A spokesperson of 0x refused to share the amount of the flood, citing contractual obligations. Flood raised $ 5.2 million from investors during a seed financing tour of February 2024.
Dex aggregators are a large company. During last week, the 12 main aggregators facilitated nearly $ 10 billion in exchange volume, around 10% of all chain trading, according to data compiled by Fredrik Haga, co-founder of Dune Analytics.
The aggregators with negotiable tokens are valued at 2.3 billion dollars combined, according to Coingecko data.
0x is one of the oldest dex aggregators. But it is not the biggest.
On Ethereum and other compatible blockchains, 1 inch and the exchange of cow systematically manages the most commercial volume among the aggregators, while on Solana, Jupiter dominates.
Bandeali said that he hoped that by combining the technologies of the two companies, 0x will be able to gain market share from larger aggregators on Ethereum and Solana.
‘Niche domain’
Another motivation for acquisition was the Flood developer team.
“This is a nice niche domain,” said Bandeali, explaining that it is very difficult for his business to find talented developers who specialize in aggregation and commercial routing.
Having the right developers is therefore crucial for the continuous success of an aggregator.
“It sounds simple but it’s really complicated,” he said. “It becomes more complicated as new channels and new tokens are launching.”
The reward to prove the best exchanges is great. Cow Swap is expected to report nearly $ 11 million in revenues this year, according to Defilma Data. (We do not know how much income 1 INCH, while Jupiter, $ 162 million in Jupiter income, come more than its aggregation services).
0x has also extended to other areas, such as the supply of API which incorporates its aggregator into other products and commercial analyzes.
But the improvement of its basic aggregation product, which feeds exchanges in applications like Coinbase Wallet, Robinhood, Phantom and Farcaster, is always the main objective.
And with Defi becoming more complex day by day, the demand for aggregators is likely to continue to increase.
“We are just trying to summarize the complexity faster than for our customers,” said Bandeali.
Read more: Dex Aggregator 1inch integrates Zksync to stimulate cross -exchanges
