0x Labs Launches Gasless Swaps API to Simplify Ethereum Transactions
Gas fees have been a major hindrance for users transacting on Ethereum’s decentralized finance (DeFi) platform. However, 0x Labs, the renowned developer behind the popular decentralized exchange (DEX) Matcha, aims to alleviate this problem with the launch of their latest trading API, Tx Relay.
Making Gasless Swaps Possible on Ethereum
Gas fees have often caused transactions to fail, especially during periods of network congestion. According to reports, approximately 8-10% of DEX transactions fail on average, and this figure spikes to 20% during high transaction volumes. However, with the introduction of the Tx Relay API, users can now enjoy gasless swaps, eliminating the need to spend ETH on gas fees.
Abstracting Gas Fees for a Seamless Trading Experience
The Tx Relay API streamlines the process of setting gas limits for transactions. By incorporating all gas costs into the transaction itself, the API ensures that users are not burdened with pre-determining the amount of gas needed. The cost of the gas is then deducted from the tokens being swapped. Currently available on Ethereum and Polygon, the 0x Labs team plans to expand to Arbitrum in Q1 of 2024.
A Game-Changing Solution for Crypto Traders
Network fees have long been a pain point for many crypto traders. Claudia Haddad, Coinbase Wallet Product Manager, sees this new API as a “huge UX unlock,” greatly simplifying the trading experience for users. As Coinbase is both an investor in 0x Labs and a beta tester for the Tx Relay API, they have discovered that 69% of Ethereum swaps encounter a “not enough gas” error at the beginning of a trade. Tx Relay solves this issue by abstracting gas fees, thus addressing a common problem faced by both seasoned and new crypto users.
Eliminating Pitfalls and Enhancing User Experience
Gasless swaps using the Tx Relay API also offer additional benefits such as protection against bots and other advanced tools known as MEV. While experienced traders often employ private mempools or custom RPCs for security, most users are unaware or unwilling to implement these basic protections. Tx Relay API simplifies this process by abstracting the protection measures from the users, ensuring a safer trading experience.
High User Adoption and Improved Success Rates
During the beta phase, gasless swaps proved highly popular among users. Coinbase reported thousands of users utilizing the feature in December alone, while Matcha reported an 85% reduction in failed trades. In the event of network congestion-induced transaction failures, 0x Labs CEO Amir Bandeali assures that transactions will be automatically resubmitted and executed.
Overall, the introduction of gasless swaps using the Tx Relay API promises to significantly enhance the user experience and lower the entry barriers for new crypto traders. With simplified on-chain transactions and reduced failed trades, Ethereum’s DeFi ecosystem is poised for a smoother, more seamless future.
Example of how a trade using Tx Relay works
Analyst comment
Positive news. The launch of 0x Labs’ Gasless Swaps API, Tx Relay, is expected to have a significant positive impact on the market. It will simplify Ethereum transactions by eliminating the need for users to spend ETH on gas fees. This will result in a smoother trading experience, increased success rates, and improved adoption rates. Ethereum’s DeFi ecosystem is expected to benefit from this development, leading to a more seamless future.
