0x (ZRX) is now available for lending and margin trading. 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 of the course of the next year.
Our previous decision to slow down the addition of margin trading on new tokens 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.
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: