There are many issues with the decentralized exchange network. Some of this include excess spread and low level of liquidity. With low liquidity levels, the number of buyers and sellers will reduce. This will trigger very bad price or difficulty in getting huge orders. Excessive distance between bids and request most time is the reason for huge spread. This makes entering and exits difficult due to the huge cost imposition.
BZX came as a link that joins the centralized and decentralized liquidity pool with the backing of the margin loans. The bZX comes with a universal liquidity that gives users access to the entire margin lending market. This points out to less slippage and a narrow spread.
BzX: A Decentralized Margin Network
The Bzx brings about a pretty safe and cheaper trading opportunity with high liquidity. With the decentralized margin trading, the Bzx protocol can operate at any margin. Asides that, it works well with traditional wallets.
The Bzx can also be seen as a localized system that gives access to borrowing and lending for margin trading. The protocol can easily be brought into new and traditional exchanges. It can also be accessed via the native bZx portal. Thus, traders, lenders and localized exchange alike will benefit from the bzx protocol
• Lenders will derive huge interest on giving out their tokens as loans. This will come without the risk of transferring their assets to centralized exchanges which could be compromised.
• Traders will have the opportunity to trade without transferring their assets to centralized exchange where it can easily be compromised.
• Also, the decentralized exchanges will gain the benefits of increased transaction volumes, better feature provision and normal trading fees.
Currencies of the Ecosystem
The BzX platform will enjoy two currencies – the BZX tokens and the SUGR tokens. They will however have their different manner of usage.
The major token of the platform however will be BZX which will serve as incentives for lenders to give out the needed digital currency. The SUGR token on the other hand will be redeemable by bounty hunters of the platform which is a fraction of the BXZ and ETH incentive pool. It is the duty of the bounty hunters to perform various tasks to maintain and keep the platform operating smoothly.
BZX – A Currency Not a Platform
Part of the aim of BZX is to bring about a system that will enable users to be entitled to interest and rebates on their digital currencies. Asides, BZX will only thrive is it can offer exciting interest rates on the crypto – making user’s earning worth it.
How the BZX will accomplish its Objectives?
- Long Positions
To have a long position, there needs to be a pretty simple exchange of a major asset with another. For instance, one could exchange DAI for ETH. - Short Positions
Short positions is pretty difficult to comprehend. A short position is hoping or assuming that something will lose value with time. His usually involve leverage, margin calls etc. - Leveraged Positions
The same principle of short positions applies to leveraged positions. The difference however is that leveraged position gives you more via borrowing.
Website- https://b0x.network
Whitepaper- https://b0x.network/pdfs/bZx_white_paper.pdf
Bounty ox username cryptobaby