Decentralized exchanges need functionalities like margin lending and clearinghouses. bZx makes these possible through trustless smart contracts
bZx Solves Decentralized Exchange Liquidity
Decentralized exchanges have two big issues: low liquidity and large spreads. Low liquidity means that there is a low volume of buyers and sellers. This can result in worse prices or difficulties filling large orders. Large spreads are caused by large gaps between bids and asks. This imposes large costs for entering and exiting positions. bZx bridges centralized and decentralized liquidity pools using tokenized margin loans. With bZx’s Universal Liquidity, you get access to the entire margin lending market. This means less slippage and tighter spreads. This means less slippage and tighter spreads.
Safer, More Stable Margin Lending
bZx pools loans together in a decentralized clearinghouse. Lenders can lend to a whole pool of people, averaging risk across many borrowers, allowing for a more predictable income stream. All bZx loans are insured with the bZx guarantee fund.
The bZx Portal is a web based decentralized application that servers as a frontend to the bZx protocol, utilizes the bZx.js library, and serves as a one stop shop for individuals looking to interact with the protocol for lending or trading on bZx, but it provides a convenient access point for users that aren’t otherwise on an exchange or relay.
The initial release of the bZx portal will be split into four sections:
- A section for the lender and trader to make or take bZx loan orders.
- A section for the trader to manage the loan once the funds are lent, including the opening of trades, the closing of trades, and ending a loan early.
- A section for the lender to manage the loan once the funds are lent including revieweing how their funds are being used and requesting an interest payout.
- A section for bounty hunters to manage open trades for margin liquidation, and to liquidate if needed.
how will people use the bZx exchange
Angie, an ETH holder, wants to capitalize on her holdings by lending them to a margin trader, but she does not want to move ether onto a centralized exchange that could be hacked. Using the bZx portal or an integrated relay, she issues a peer to peer loan straight from her wallet. She can feel safe in the knowledge that her ETH is secured by smart contracts, never having to worry about loosing money on a loan.
Delsos, a trader, wants to open a long position with additional leverage on an ERC20 token. Delsos looks for an exchange with the lowest interest rate minimizing the cost of utilizing leverage. Eventually, Delsos settles on a decentralized exchange integrated with the bZx protocol ; interest rates are almost always lower for non-custodial margin loans because lenders don’t have to be compensated for the risk of the exchange being hacked.
A decentralized exchange wants to increase trading colume and liquidity. They integrate the bZx trading volume and liquidity. They integrate the bZx protocol into the DEX, allowing market makers to hedge risk while providing order book liquidity.
Team
Website: https://b0x.network/