0x (ZRX) is now available for lending and margin trading on both Ethfinex and Bitfinex. This marks a turning point, after several months without making any new tokens available for leveraged trading, despite overwhelming numbers of requests from customers.
We believe that allowing traders to take long or short positions on tokens they believe to be undervalued or overvalued is healthy for price discovery, and the overall market. We hope to add margin trading on a wider number of ERC20 trading pairs over the course of the next year.
Our previous decision to slow down the addition of margin trading on new token pairs was taken in order to protect users, since many trading pairs, particularly the smaller ERC20 tokens by market capitalisation and volume, were observed as more vulnerable to large price swings.
Risk Analysis Criteria
We have now completed development on a set of new risk and analysis tools which allow us to evaluate healthy markets. We will continue to build on these as we add new margin markets. ZRX is the first token to go through our analysis and meet all of our criteria. Some of the many high-level factors included in this decision process include:
- ZRX/USD and ZRX/ETH trading pairs on our platform have been consistently healthy (both in user numbers and volume) since they were first added,
- ZRX is traded on many exchanges, both centralised and decentralised,
- ZRX has one of the more widely distributed ERC20 token holder bases.
We are also excited to be continuing our preparations for switching our non-custodial trading platform, Ethfinex Trustless, to use the 0x version-2 smart contracts for settlement.
Trading for ZRX, as well as OMG, SAN, SNT, EDO, FUN, against ETH and USDT is currently live at https://trustless.ethfinex.com, allowing you to buy and sell those tokens from any Ethereum wallet.