# DeFi & Infrastructure (Swaps – regular and gasless ones) - Daria Shakhbazova | 0x

- Channel: [ETH Belgrade Community](https://streameth.org/eth-belgrade-community)
- Date: 2023-10-07
- Duration: 15:44
- Watch: https://streameth.org/watch/yt-BH2YHC8VM4M
- YouTube: https://www.youtube.com/watch?v=BH2YHC8VM4M

## Transcript

okay [Applause] uh guys a question how many of you have been just been here for the panel so I would understand how much of the intro to do can you raise hands who have been for the panel uh okay so a lot so I will try to be brief so my name is Daria I'm Business Development lead for Xerox and uh basically yesterday the topic is the trends of swap in defy uh quick question I know the audience is quite Advanced but like how many of you have a self-casted about again there is friends okay so decent amount that's good I'm under in the right place in general so before talking about swap specifically uh I would like to talk about wallets uh because basically wallets kind of uh uh the low hanging fruit I would say for a swap kind of infrastructure providers in a way that that every wallet needs a swap this is how the life is and the world stage right now is uh the way that there are more than 100 wallets compete for user in in defy and this basically means that wallet works are coming so if it's not happening right now because actually I think it's it has started already you will see like uh metamask Computing versus for example coinbase versus trust wallet versus UNI swap uh or like Phantom and at the same time you see like externally owned account wallets uh like I just mentioned before starting to compete with smart contract wallets that will allow to recover your seed phrase as one of the use cases or also we are in the interesting time for the wallets and as I mentioned basically each wallet needs a swap swap is the heart of the wallet because it's provides it's monetization strategy for many many wallets now you are here to hear about three Trends and Swap and I will tell you about those in about like five minutes but before like why you should actually listen to me and why does it make sense to like know about swaps as well so above 0x a little bit more deep dive than it was on the panel uh Xerox has been around since 2017 and uh the mission of the zero X is like really big and What attracted me first in the company is to create a tokenized vault where all the value can flow freely so where you can exchange tokens to say uh token and securities everything on Xerox protocol one day maybe and the founding team is very well known in the five space because for example like our Founders help to establish nft standard TRC 721 have to help with easy implementation and basically a very well known in Dex Vault because like it's one of the oldest projects who survived through a lot and we are also well backed last year we raised 70 million dollars from firms such as the coinbase Rangers Jam Pantera uh and Greylock this is very briefly about us and of course we just don't uh raise money from reputable firms we also work with many players in the Crypt industry or coinbase polygon uh Robin Hood metamask the ydx uh I'm and of course like the file saver that all of you uh like by now should uh like know and like love overall and uh more than generally 50 apps right now are in our ecosystem and this is uh just the apps that we know about in reality there are many many more now the protocol itself and the apis has processed more than 125 billion volume more than 15 million transactions and we partially crazy with from more than 100 sources and we support eight chains with ninth coming pretty soon with Bass so the chains were uh from which for which we pass liquidity include is arbit room BNB AV Avalanche polygon Phantom optimism and channel and the idea is that you can't get the best swap rates just from uni swap even though a lot of people still believe that trust me but the idea is to pass the liquidity from different dexes and give you the best uh like price lowest gas fees and ideally low slippage as well uh so all of this is about like swap API the basic swap API Works in a way that uh there are two types of liquidity sources where we get the liquidity from the first one is basically imms so uni swap search swaps of the Vault and second part is private market makers uh so more like trading firms who can potentially also search from centralized sources and these two liquidity sources uh when they provide the quote when user asks for it and they can beat between each other to get the best price and lowest gas fees and based on this we give you the best rate and then if you like it you basically you either swap or not all right this is like very very basic uh okay and uh about the Rex again we don't have only swap API we provide the whole suit of apis right now to why available and like three more coming pretty soon including like transaction history API order book and token registry uh so also API will be including the data on Swap as well not just a different exchange of value and of course uh like we are also well known in the industry for my gxyz which is our front end and there you can try out all our all of our Tech and basically see how Xerox API Works in general and we recently launched a new version of it so it's pretty cool especially uxy so please come and try it out and you can give me feedback even better I won't be offended if you don't like it but we've got lots of positive feedback so I'm calm on this side now about strength because this is basically the topic uh three things and like one bonus one the first one uh we know that ux in Defy is known to be bad but in reality it has been improving quite a lot uh for wallets and swaps as well and one of this Improvement is like gasless swaps second part is Mev awareness so it's becoming really strong and there are different ways of how you can look on Mev but it's not something that people ignore anymore the third trend is Crossing uh Solutions are being adopted it's still not on the like Dex aggregation level let's put it this way uh the the numbers are still quite small even though people use Bridges a lot but for like uh crushing aggregation it's still like pretty low volumes but uh uh there is a demand for it so people are actively building and I'm being pink for maybe at least once a week by some new cross chain solution which is pretty cool and the final part is like Enterprise and institutional players are showing a lot of interest in defy so this is something that I think we should all keep in mind and when we're building because we a little bit used to have our uh kind of cozy Market with Builders uh uh but big names are coming into the industry and they might change the scale and how we operate as well and we should be prepared for it I will deep dive now in into one of each of the trends a little bit so first transaction relay uh or gasless API basically same old swaps but you don't need to hold native token in the wallet for me for example it's a very a big friction point when I swap especially on these because I keep forgetting to top up my ease and because of this I need to either ask some friends or go to centralized exchange and this like stops my transactions quite often to be frank and with the transaction metal API uh like gaspies have been wrapped into quote this is one way or wallet or like the app can actually sponsor these cases for the user think about it as like uh like accountable abstraction right now is Hot Topic for like gospel stuff so this is like very very big account abstraction stuff in a way that uh it's not account abstraction at all because it's like not wallet it swaps but it allows to give you the same effect so you can swap gaslessly which is like pretty cool because it's already live now and you don't need to bother about like smart contracts risks in general uh second part uh uh that I really like is gasless approvals because uh it's not it's available for I think 100 or maybe a bit more tokens right now on East and polygon but with it it's like it makes your transactions just very smooth because you just click click click click and uh basically you don't need to think about gas fees for your the token that you need to swap it like simplifies your life quite a lot uh in general at least mine um Okay so and how transaction delay Works in general or there are three components behind it uh first of all it's meta transactions uh so which allowed to send messages uh uh that authorize smart contracts to perform actions on your behalf uh the second part is 712 which makes like messages human readable and the last part is castles approvals and because of like limitations with gasless approvals it's only like uh hundreds or so tokens right now but overall it's pretty straightforward and ready to implement uh second five uh Mev awareness so there are different approaches to Mev one way is basically just to avoid it and this is or like try to protect user from it this is the past that we took about a year ago when we introduced slippage protection for swap API and basically the idea is that we look into a bunch of data and 0x has been around for years now so we have lots of data and we see which the access uh on which the access users were like attacked them all on the most where was the highest Mev and basically when we are out we take into account this data and we optimize not just for quotes that Dex give us we optimize for execution that we saw in the past and each new transaction fits us new data so our routing gets better and better for execution specifically uh and so this also includes like Meb different mab attacks second approach overall uh is slightly different because uh we know MAV is there it's like no not going anywhere so what we've seen some people introducing uh for example Rook as a project is basically a Mev capturing and sharing bags with the user so this is another Trend uh it's not on slides but it's definitely something that is a Hot Topic between devs right now uh now talking about Trends three and four cross Chain Solutions uh the big history with cross chain is security I would say deck segregation either us or competition have a lot of trust have a lot of volumes and were battle tested lots lots of cross-chain forks are not battle tested yet and a lot of clients I'm talking right now or they're asking for cross chain swaps so in the future it's definitely a feature that it is demanded that it will be introduced and at the same time it's not just on the demand side on the supplier side you see like tons of cross Chain Solutions uh that are being built and the I guess the problem with us right now is that we haven't found ideal one that would work for us so we might end up building one oneself but we'll see again how big the demand for it is but we're definitely keeping the hand on the pulse here and for big players I keep hearing the appearing opinion from them that basically centralized exchange is still like the best bridge for them so somebody like binance because if you need to exchange millions of dollars or like uh billions uh you don't want uh to like lock them in some bridge at least they don't they don't want to do it uh and finally speaking about Enterprise and institutional demand uh the opinion right now that people are very interested in defy here because it's like basically bear market and they're actually building right now to be prepared for the bull so I it's strange for me even to say it but it's very Builder mentality in that way because we are also building now to be prepared for the bull in a way and because like everybody knows that very the best time to build institutions and Enterprise are the same and they are like uh the success rate and like launch rate from what I've seen is honestly much lower than in tier 5 for many reasons but even a couple of big guys if they're coming and delivering and for sure there will be a few they can change the landscape quite a lot so the whole takeaway of this talk like the file is change is like General generally here to stay swaps are changing uh like together with their fi ux is changing technology is improving a little bit uh and how we operate also change so let's just keep building and have fun with it