This protocol provides a safer lending and cheaper trading with more liquidity. The BZX protocol enables decentralized margin trading, and it can work at any margin. Besides, it integrates well with already existing wallets to turn Ethereum wallet into an unBank account that is decentralized thus pays its users for holding. The decentralized exchanges need functionalities like a margin lending and house clearing. bZx makes that possible through smart contracts that are trustless.
Problems bZx Seeks To Solve
The decentralized exchange has several major issues, including low liquidity and large spreads. Low liquidity indicates that there are fewer buyers and sellers. This can result in extremely bad prices or difficulties in filling large orders. Large spreads are the result of large gaps between bids and asks. Thus, there is a large imposition of huge costs for entering and exiting positions.
BZX acts as a bridge between the centralized and the decentralized liquidity pools that use the tokenized margin loans. With the bZx’s Universal Liquidity, it enables users to get access to the whole margin lending market, which implies there will be less slippage and tighter spreads.
bZx Solutions
bZx makes it safer and more stable to lend. The loans are all pooled together in a decentralized clearinghouse. Lenders can lend to a group of people, therefore spreading risk across a group of borrowers. In this regard, it will allow the income stream to be more predictable. Above all, all the Loans by bZx are covered using the bZx guarantee fund.
The decentralized margin trading powered by bZx – the BZRX token, collects trading fees using relays. The token holders decide how they are going to upgrade the bZx community.
How bZx Decentralized Margin Trading Exchange Network Works
Long Positions
Taking a long position will involve a very simple exchange of one major asset for another. For example, you could exchange DAI for ETH since you think that the Eth will do better in appreciating value than DAI.
Short Positions :
Taking a short position is difficult to understand and more complicated. A short position is assuming that something will depreciate over time. Short positions will require escrow, margin calls, and leverage.
Leveraged Positions
Leveraged positions make use of the same mechanics the same as short positions, but with the leveraged positions you can get more than you have by borrowing.
bZx Benefits
There Is Minimal Risk
Whether you are a lender or you are borrowing, you have to stay in control of your keys. You will never have to worry about the exchanges getting hacked and your funds being stolen, as there is safety.
Passive Income
This one will help you make money with the assets that you already have in your wallet, and you will not have to give up full control. The interest rates on the margin loans are very much higher than those traditional loans and they are much safer.
Low Fees
The traders dealing with centralized exchanges do pay higher interest rates so that the lenders can be compensated for the possibility of the exchange being attacked by hackers. The decentralized margin lending makes it more affordable to trade.
The mainnet release of bZx will be available to the public in late July and early August 2018. You can join the revolution here: bzx.network/tokensale.
bZx BZRX Token ICO Details
Ticker: BZX
Token type: ERC20
ICO Token Price: 1 BZX = 0.0730 USD
Fundraising Goal: 36,500,000 USD
Sold on pre-sale: 7,300,000 USD
Total Tokens: 1,000,000,000
Available for Token Sale: 50%