0x Acquires Flood to Boost DEX Aggregator Market Position

Coin WorldThursday, May 15, 2025 11:07 am ET
2min read

0x, a decentralized exchange infrastructure firm, has announced the acquisition of its competitor, Flood. This strategic move is aimed at enhancing 0x's position in the highly competitive decentralized exchange (DEX) aggregator market. DEXs are integral to the decentralized finance (DeFi) ecosystem, enabling blockchain users to swap assets without the need for intermediaries or centralized exchanges.

DEX aggregators, such as 0x, serve as a one-stop-shop for traders by searching across various DEXs to find the most cost-efficient trades, charging a small fee for their services. The competition in this space is intense, often operating on thin margins. The acquisition of Flood was driven by its proprietary aggregation software, which impressed 0x's CEO, Amir Bandeali, during trade simulation tests. Bandeali highlighted that Flood's software demonstrated exceptional performance, motivating the acquisition.

Flood's co-founder and CEO, Francesco Baccetti, noted that their software was built from scratch to achieve its current level of performance. This acquisition marks 0x's first since its founding in 2017. While the financial details of the acquisition were not disclosed due to contractual obligations, Flood had previously raised $5.2 million in a seed funding round in February 2024.

The DEX aggregator market is substantial, with the top 12 aggregators facilitating nearly $10 billion worth of swap volume in the past week, accounting for approximately 10% of all on-chain trading. Aggregators with tradable tokens are valued at a combined $2.3 billion. Despite being one of the oldest DEX aggregators, 0x is not the largest. On Ethereum and compatible blockchains, 1inch and CoW Swap handle the most trading volume, while Jupiter dominates on Solana.

Bandeali expressed optimism that by integrating Flood's technology with 0x's, the combined entity could capture market share from larger aggregators on both Ethereum and Solana. Another key factor in the acquisition was Flood's team of developers, who specialize in aggregation and trade routing—a niche domain that is crucial for an aggregator's success. Bandeali emphasized the complexity of this field, which becomes more challenging with the launch of new chains and tokens.

The financial rewards for providing the best swaps are significant. For instance, CoW Swap is projected to generate nearly $11 million in revenue this year. 0x has also expanded into other areas, such as providing APIs for integrating its aggregator into various products and offering trading analytics. However, improving its core aggregation product remains the primary focus, as it powers swaps in popular apps like Coinbase Wallet, Robinhood, Phantom, and Farcaster. With the increasing complexity of DeFi, the demand for efficient aggregators is likely to continue growing.

Bandeali summarized 0x's strategy by stating, "We’re just trying to abstract away the complexity faster than it’s created for our customers." This acquisition is a strategic step towards achieving that goal, positioning 0x to better compete in the rapidly evolving DEX aggregator market.