bZx: THE MARGIN LENDING PROTOCOL
A whole new system of finance and trading was opened when Satoshi Nakamoto introduced Bitcoin in 2009. Bitcoin was the first ever cryptocurrency. Since its inception in 2009, Bitcoin has paved the way for the establishment of various other cryptocurrencies. Today, cryptocurrency has gained prominence in the legal world. Report has it that the trade value of all cryptocurrency put together, is over 200 billion dollars and this value has been tipped to rise in coming years.
Cryptocurrency has solved the problems which for long, the conventional financial system has not been able to solve. Cryptocurrency has, with blockchain technology, been able to solve the problem of government interference and intermediary bottlenecks and has been able to give rise to a decentralized financial system which is not controlled by any central force.
However, there exist challenges in the use of cryptocurrency, which, if not solved, will go a long way to limit its usage and prominence. One major challenge is the issue of decentralized assets being traded on centralized exchanges. With centralized exchanges, traders are exposed to assets’ risks. Traders’ are not in full control of their assets. The exchanges maintain the assets and thus render them to external risks. Being fully aware of this challenge, bZx has established a fully decentralized protocol, the first of its kind, to effectively tackle this problem.
The bZx Initiative
The bZx protocol is a fully decentralized protocol, the first of its kind, for peer-to-peer margin funding and trading. The bZx protocol is built with Ethereum and integrated with the 0x protocol. The aim of bZx protocol is to create a decentralized margin, which will eliminate the issue of assets’ risk while maintaining flexibility and liquidity. With bZx, individuals can now engage in margin lending or trading without having to transfer their liquidity to centralized exchanges.
The bZx protocol consists of three components:
●bZx Smart Contracts
❏bZx Portal: The bZx portal serves as the platform of the bZx protocol. It is a web-based application which utilizes the bZx.js library. It is the final junction for individuals and exchanges that seek to interact with the protocol for margin lending and trading.
The bZx portal has four sections:
➢A section where bZx loan orders are made and taken by the lender and trader respectively.
➢A section where management of lent funds is done by the trader.
➢A section where management of lent funds is done by the lender.
➢A section for bounty hunters to manage open trades for margin liquidation.
❏bZx Smart Contracts: The smart contracts are responsible for facilitating on-chain margin lending. The smart contracts are also responsible for facilitating opening, monitoring and liquidation of ER20 tokens. The smart contracts are responsible for the smooth execution of transactions via the bZx protocol. bZx protocol is made up four major smart contracts:
➢bZx.sol: The bZx.sol smart contract is more of an “overseer” smart contract. It controls other smart contracts that make up the bZx protocol. It is the entry point for all margin lending and trading transactions which are carried out with bZx.
➢bZxVault.sol: This smart contract is escrow-based and it is used for storing ether and other tokens which are not actively used for trading.
➢bZxTo0x.sol: This smart contract serves as an interface for trades which utilize the 0x exchange contract.
➢Oracle_Interface.sol: This smart contract acts as an interface for developers to develop custom oracle contracts.
The BZRX token is the official token and initial coin offering of the BRZX protocol. The BZRX token is a utility token and functions to govern the bZx protocol and incentivize individuals and exchanges which utilize the bZx protocol.
The bZx protocol is itself not an exchange, but a protocol (better seen as a series or smart contracts) which can be integrated into the current exchange system. With the adoption of 0x protocol, the bZx protocol will give rise to a whole new generation of decentralized exchanges.
To find out more about bZx, use any of the following links:
MIANNET DAPP: https://portal.bzx.network/