Systems understanding of 0x

Hi all! I am new to this community and have been wardley mapping off and on for a couple years now to help with understanding. This is my first time publicizing one of them and I would very much appreciate feedback.

It’s in this link - Systems: 0x - about two pages down under “How does this value chain evolve?” The topic is Order Flow in Web3 (crypto) and came about as we were trying to understand 0x. I don’t think you have to read the whole doc (although feel free to) to understand what’s going on.

In case it’s helpful, here’s the clone link - OnlineWardleyMaps - Draw Wardley Maps in seconds using this free online tool .

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Hey @cinjon.resnick,

what kind of feedback would be most useful for you?

Hi @chris.daniel, thanks for the Q.
The most helpful feedback would be along the following lines:

  1. How do you view this Wardley Map? Is it too complicated? Not clear enough? How would you do it better in order to grok what’s going on in the space?
  2. Are there observations / insights outside of what I listed (repeated below) that you glean from this map?

Observations from the map, reproduced from the website above:

  1. Many of the aggregation functions have pushed to the right. These include TradeRouting, Relayer, and both Price and Quote aggregation. This has made it much easier to build everything else in the space, like the professional view or white-labeled SwapUIs.

  2. Both Options Trading and NFT Trading are being custom built and are not yet products, but they will surely progress to that state given the large demand. That space will become product rentals just like the SwapUIs, resulting in OptionsTrading and NFTTrading white labels. Over time, these likely will unite as a single rentable product offering all three. It may even be called “Matcha”.

  3. The on-chain order book is still in the custom phase. 0x isn’t building it, and we are not sure who is. Does it even matter though? Do people care that their orders are on-chain? It would be much more expensive, but there may actually be advantages for some external reasons.

  4. The UIs are near the top of the value chain. Further, that space will not concentrate anytime soon because of the custom needs for important assets like NFTs and Options. Consequently, We expect there to be a flux in that market given changing user and developer needs. This follows from new app categories attracting new types of users.

  5. The aggregators are far down the value chain and all of their services are productized by now. We expect less change and instead consolidation as the lower revenues squeeze out competitors and market volume concentrates. In a market with entrenched liquidity, it is easier to build a UI and connect to aggregators than it is to build a capable aggregating service. To do so, a new service would have to either win over the big sources or get lucky with a new one that grows massive. But the latter is difficult because exchanges get more attractive to users with size.

  6. Discovering new assets, regardless of fungibility, is a custom affair still. If you know of a service offering this as their product, I’d love to know about it. There are players like TheGraph offering some through their subgraphs, Metamask offering lists for ERC20s, OpenSea offering feeds of NFTs, but no one appears to be doing this as their central service and everyone needs it. Monitoring for new tokens and token activity is such a requisite that demand should eventually push this into being a Product.

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I’m not a Web3 expert, but when reading the map content I miss a couple of clarifications related to the “capital flow” that goes through the lines.

The original Capital flow concept could here the trades volume that are significant and shown in the charts you have added. My point is to highlight in the map (or in a copy of this original map) where these flows are relevant.

Why? I would like to visualize where the middle-man makes more sense.

best regards,

@joapen, if I understand you correctly, I think you’re suggesting to make it explicit how the capital flows through the system in the Wardley Map? And that would then pinpoint the role of the middle-man.

That’s a good suggestion … and I’m actually unsure how I would do that with the tools. Are you suggesting using something besides the nodes and lines, like evolution lines?


I hope this thread help you on how to draw flows on the map.

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For me, the map is great. It shows how the landscape looks like, where is the competition (that’s how I read SimpleView & ProView) and how are you going to build the 0x.

Your analysis sounds good to me. You do properly justify the evolution phases and anticipate what is going to happen. I do trust you are aware Wardley Mapping is not a crystal ball, and those things might not happen :).

If I were to take a really critical view at the map, I would spend a bit more time looking at the Trading and Market View components - very close to the user. Those two things isolate customers from the underlying value chain - and the only thing that matters is a contract exposed by those two components.

This contract (I am happy to be corrected on this, really) is almost identical to traditional (non-crypto) financial tools. And if it is so similar, you need to be able to articulate really clearly what are it’s advantages given the end user will not see anything past the interface.

Now, I am not sure if this is something you own or can influence, but it still would be something for me to examine, as this is something that may affect 0x - you can do everything else right and still get limited market share.

BTW. I really like your map.

Best regards,

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