If you have been to the bank of recent, or if you have done business with any microfinance association, I bet you have a lot to say about the bureaucracy that comes with getting your lending proposers. For you to lend, the bank or other associations in charge will charge you excessively. Asides, the commission fee is usually on the high side as well.
This is why part of the emergence of the blockchain technology was to address the issues of banking and lending. It is not surprising that many firms have incorporated and executed the blockchain components into their operations.
I am however presenting a blockchain based system aimed at presenting a decentralized lending and trading system. It is called the bZx platform.
Introducing the bZx platform
Constructed on the Etehreum platform, bZx is integrated with the 0x protocol. It is a completely decentralized peer to peer trading and investment platform. While bZx is not a trade, it is a protocol that can be part of the modern infrastructure.
Through expenses in the BZX protocol token, exchanges and relays are incentivized which brings about a decentralized margin trading and lending service. The protocol brings about, with more liquidity, a cheaper trading, and safe lending platform. With bZx protocol, there can be decentralized margin trading which goes with any margin. The platform also integrates well with established platforms. With this, you can go as far as converting an Ethereum wallet into an unBank account. As a result, holders get rewarded via this decentralized system.
Issues bZx is trying to Address
Asides liquidity and large spread, there are many issues with the decentralized exchange platform. Low liquidity points out to a reduced number of buyers and sellers. This will affect price negatively and also make filling large orders difficult. When there is a huge gap between asks and bids, there will be a large spread. This transfers large cost for positions available 0 entering and exiting.
BZX came as a bridge between the decentralized and centralized liquidity options. Users can easily obtain access to the margin lending market when they make use of bZx’s universal liquidity option.
A PROTOCOL NOT A PLATFORM
BZX is seeking to bring about an innovation that will help users gain interest and rebates on their crypto. Should BZX succeed with the project, the crypto interest rate will increase, increasing the earnings of users.
Also, the entire decentralized exchange platform will change if BZX can make exchange give out interest rates on their holdings.
Benefits Presented by bZX
• Reduced Levels of Risk
Whatever your interest – lending or borrowing, the control of your key lies with you. There is safety as the risk of hacking and stolen funds are off the table.
• Passive Income
With assets present in your wallet, you get to make money without giving up control. The margin loans have a much higher interest rate which is safe, compared to traditional loans.
• Reduced Fees
Traders on the centralized exchange platform do not have to pay excessive interest rates. This way, should the exchange be hacked, lenders can be compensated for it.
BZX ICO DETAILS
The ICO of the bZX platform has been presented to all and is available to the public. However, holders of bZx token only can take part.
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Author - Coltpython
Bitcointalk
