Since the introduction of cryptocurrencies such as Bitcoin, Ethereum, Litecoin, they serve as either long term or short term investment for investors and traders. Traders buy and sell cryptocurrencies on exchange to take profit on daily basis. We have two types of exchange:
Centralized and Decentralized exchanges
Although new generation decentralized exchanges (DEXS) take care of some of the issues that affect older decentralized exchanges, they still lack the abilities of centralized exchanges - Margin trading and clearing houses. These two problems give rise to low liquidity and large spreads. When there is a low volume of buyers and sellers, there is low liquidity which can result into difficulty in filling large orders and poor pricing while large gaps between buying price and selling price causes large spreads. This imposes large costs for entering and exiting positions. Traders are then forced to turn to centralized exchanges exposing them to counterparty risk.
To implement this decentralized margin trading, a reliable Oracle need to be designed to match the settlement of centralized exchanges. Another problem with this implementation is how to reliably and securely liquidate troubled positions in case of network congestion. This is where bZx comes in.
ABOUT bZx
bZx is a protocol that powers decentralized margin lending which can be built into any exchange. BZx makes functionalities like margin trading and clearing houses available which will bridge both centralized and decentralized liquidity pools. With bZx, traders will have access to the entire margin lending market in DEXs with tighter spread and more liquidity. Decentralized trading market brings about minimal risk, more affordable trading fees and a means of passive income for individuals that are holders.
BZx ORACLE
bZx formerly b0x is a liquidation Oracle marketplace on the Ethereum blockchain where oracle providers and users meet. Oracle providers, be it an individual or organization compete to be chosen by users based on reliability of the successful oracle and the price they charge. The providers make gain either from token schemes or from fees on interest earned by the lender.
When traders create an order, it is important to specify the oracle provider. bZx oracle is fully decentralized and operated partially off-chain and when it is used, anyone can call the liquidateTrade contract method when the conditions are met. This also apply to bounty hunter that uses bZx to keep track of all open trades to see if they have gone below margin maintenance. Once any position is confirmed below margin maintenance, bZx oracle will be used to liquidate the trade.
One of the interesting feature of bZx oracle is that it works in times of network congestion. This oracle has been designed to liquidate any trade as quickly as possible with the fewest number of transactions once the account is below margin maintenance even without user intervention.
BZRX TOKEN
This token is an utility token that is used by relays to collect trading fee. For decentralized margin lending and trading services rendered to exchange, they are incentivized by fees charged in BZRX. The token also serve as governance of bZx protocol that facilitate decentralized updates to the protocol.
Presently, an ico is going on for BZRX tokens. To participate in this project token sale, kindly follow this link https://b0x.network/tokensale.
You can join Whitelist here https://b0x.network/#
BZx TEAM
The brain behind the bZx platform is made of veterans with ample years of experience in application development, blockchain technology and other related areas. It was founded by Tom Bean and Kyle Kistner being the operations Lead, Aliaksei Hiatsevich the senior blockchain engineer and other team members.
Among the advisors we have Stani kulechov, the founder of EthLend.
With bZx we can have true margin trading/lending on our decentralized exchanges
To find out more about this project, here are some related links:
Website Whitepaper Telegram Twitter
Bounty0x username of the author : Ayoope