The protocol is built on an off-chain order relay with on-chain settlement. Specifically, orders are signed and broadcasted on the blockchain, while settlement is done on the blockchain.
Unlike Ethereum-built DEXs 1.0 (e.g., Oasis, IDEX), this protocol allows users to send and cancel orders without any associated gas fee, while maintaining the non-custodial feature of DEX.
In addition, the 0X protocol allows interoperability between dApps, fostering the liquidity of networks through positive network effects.
ZRX tokens are used for governance functions within the 0x ecosystem. They are also used by relayers to create liquidity pools.