Introduction
This document is for Professional Market-Makers who want to understand an overview of the 0x RFQ system and how to provide liquidity to it.
If you represent a trading firm that would like to add liquidity to the 0x ecosystem via the RFQ system, please get in touch here: 0x RFQ Interest Form
If you are a Swap API integrator who would like to access RFQ liquidity, check out How to Integrate the RFQ System .
About the RFQ System
RFQ liquidity is currently available on Mainnet & Polygon.
An Exclusive Source of Liquidity
In its role as a DEX aggregator, the Swap API integrates both on- and off-chain liquidity. On-chain liquidity is sourced by sampling smart contract liquidity pools, such as Uniswap and Curve. Off-chain liquidity is sourced from professional market makers via the 0x Request-for-Quote (“RFQ”) System.
If integrators request a standard quote from the Swap API, part or all of their quote may be sourced via the RFQ system. In this system, the Swap API aggregates quotes from professional market makers, alongside quotes from AMMs. If the market-maker quotes are more competitive than AMM quotes, they may be included in the final price shown to the end-user. The end-user’s liquidity is ultimately provided by a combination of AMMs and professional market makers. Everything happens under-the-hood!
Parties in the System
Trusted Takers
RFQ orders contain a takerAddress query parameter. When an order containing this parameter gets hashed and signed by two counterparties, it is exclusive to those two counterparties.
Dedicated Makers
In addition to the Swap API configuration identifying trusted takers, it also contains a list of specific market makers that participate in the RFQ system. Each maker is identified by an HTTP endpoint URL, and each endpoint has an associated list of asset pairs for which that endpoint will provide quotes. For the instance at api.0x.org, the 0x team is maintaining a list of trusted market makers.
If you represent a trading firm that would like to add liquidity to the 0x ecosystem via the RFQ system, please get in touch here: 0x RFQ Interest Form
Indicative Pricing, Firm Quotes, and How to Integrate
Read more about how integrators (takers) request for indicative pricing and firm quotes in How to Integrate the RFQ System.