Due to the recent 0x revolution, a new system of decentralized exchanges (DEXs) are emerging. These decentralized exchanges eliminate some of the major issues tackling the older DEXs but the downside is that it has a low capability compared to the leading centralized exchanges. Most people looking to engage in margin trading or margin lending are still forced to divert their liquidity to coin exchanges and centralized token thereby exposing them to extra counterparty risk. Asides this, another challenge is the design of a robust oracle that can tackle all forms of security attacks as applicable in centralized exchanges. The most intense problem affecting decentralized margin lending is its capability to liquidate troubled positions effectively and securely. The bZx protocol seeks to address these cogent issues.
The bZx protocol is structured into three main components; bZx.js Library, bZx Portal, and bZx Smart Contracts. The bZx.js Library is an asynchronous JavaScript library that incorporates all the functions that facilitates the interaction with bZx smart contracts on-chain. Software developers can utilize this library for proper integration with the bZx protocol. Also, relays and exchanges can use it to create an interface for margin trading and lending on bZx thereby providing value for their customers. The bZx Portal is a decentralized application embedded on a web-platform, which serves as a frontend for bZx protocol and at the same time serve as the marketplace to enable individuals interact with the protocol for margin trading and lending. Furthermore, bZx Smart Contracts have been incorporated into the protocol system to speed-up on-chain margin lending, liquidation, opening, and monitoring of ERC20 token trades.
The technique bZx has chosen is to develop an oracle trading place where oracle providers compete, allowing both users and providers to select the trade-offs customized for each individual. This implementation of this system result in payment for oracle services at a minimal price rate and with the highest reliability. This allows anybody to create their own oracle. If they are able to perform the task, the creators will benefit from the token schemes or from the fees generated from the interest gained by the lender. An oracle provider can sell at any price, but individuals are allowed to make their choice. bZxOracle is a fully decentralized system that operates in a partial off-chain form. When generating an order, it is mandatory to specify the details of the oracle provider. If the normal procedure is followed, anyone can then place a call to the liquidateTrade contract method so as to get a bounty after authentication.
The BZRX token performs two main functions; Management of the bZx protocol and the incentivization of order book system via relays. The token manages the various rational economic agents incorporated into the protocol. It enables the installation of decentralized updates into the protocol. By Q3 2018, the following activities will take place; the integration of Oracle marketplace, the development and management of token governance and the development of cross-chain asset lending. In conclusion, bZx is integrated with Ethereum as well as the 0x protocol. It comes with a complete decentralized system, trading protocol and peer-to-peer margin funding to ensure seamless transaction. website whitepaper telegram twitter medium
Author - Coltpython
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