- The 0x team has announced that they have developed three new extension contracts: Forwarder, Dutch Auction and Whitelist
- The contracts expand the core functionality of the platform
- Protocol security will not be affected as the contracts do not modify the state of 0x protocol
On February 28, 2018 the 0x team announced that they have developed three extension contracts that can potentially make the platform more useful for traders.
Due to the nature of the 0x platform, ETH must be converted to wETH (“wrapped” ETH) in order to be traded. Trades also must be executed by some kind of algorithm. This is exactly what the Exchange Contract does, being the core 0x algorithm. Additional contracts can be added to broaden the functionality range.
For example, a recently added MultiAssetProxy Contract will enable trading arbitrary bundles of ERC-20 and ERC-721 tokens; the decision to add the contract was made by the community. Now 0x has developed 3 new extension contracts that can be swapped interchangeably to interact with the Exchange Contract; none of them modify the state of the core protocol, meaning that they cannot have a negative effect on its security.
These extensions simplifies dealing with wETH by allowing users to send ETH and the orders they want to fill in a single transaction. 0x states that the contract is already functioning and is powering 0x instant – a tool that can be built into any website or app, making 1-click buying from 0x’s networked liquidity pool easily available to users.
Dutch Auction Contract
Thanks to this contract, users can create markets that are not utilizing the traditional limit order book model. The working principle of the Dutch Auction is that the asset’s price reduces gradually if there are no bids until a buyer is found. Such a system is being used by platforms like Decentraland or Cryptokitties to let the market determine the price of NFTs.
Users planning to offer regulated assets can use the Whitelist Contract to automatically filter a set of previously approved Ethereum addresses. For example, one of the platforms using this contract is Wyre to sort out users that had previously passed KYC.