The decentralized exchanges are quite popular nowadays for their unique features. However, these exchanges are also suffering with a lot of issues. The low liquidity and large spreads are affecting decentralized exchanges. Consequently, tremendously bad prices and problems in filling large orders occur. Huge gaps between bids and asks cause large spreads because of which a huge imposition of huge rates for entering and exiting positions.
The BZX promises to provide a workable solution by acting as a bridge between the decentralized and centralized liquidity pools. All the participants of this platform can get an easy access to the whole margin lending market. Thus, it ensures there will be much tighter spreads and less slippage.
This platform operates by offering the following:
In order to take long position the user will have to make a very easy exchange of major assets for another. Suppose you have DAI, so you can exchange it for Ether if you believe ETH will gain a better value than DAI.
It is a bit complex to learn how to take short position. It is defined as assuming that some assets’ value will decrease over time. Taking a short position will need margin calls, escrow, and leverage.
The leveraged positions implement the same mechanics used by the short positions. However, with the leveraged positions the users can gain more than they can gain by borrowing.
The BZX protocol will essentially make it safer and a lot more stable to lend. All the loans will be pooled jointly in a blockchain-powered clearinghouse. The lenders can find a group of people and then lend the amount in order to minimize the risks and ensure quick returns with good interest.
This platform is promising to minimize the risks whether you are a borrower or a lender. In both situations you will gain the controls. Activities like exchange hacking will never affect your funds because your funds will always be stored safely. This platform also ensures passive income. The participants can use their assets in order to make more profit from trading. Though you are a borrower, you will still gain some control over your assets and their movements.
Unlike centralized trading platforms, the BZX protocol will minimize the trading charges and therefore you will have to pay a very low amount as fees.
Token Symbol: BZRX
Platform: Ethereum
Standard: ERC20
Total Token Supply: 1 billion BZRX
Token Price: 1 BZRX= $0.073 USD
Hard Cap: $36.5 million USD
BZX is not a crypto exchange but a protocol. It is introduced to offer affordable trading and safer lending with a promise of more liquidity. The margin lending feature offered by this platform is pretty lucrative and that can work at any margin. You might have understood the advantages of investing in the BZX platform. So, if you want to make an investment, then you can acquire the BZX tokens during the crowdsale. Not all the supplied tokens will be distributed, but still the investors can gain access to a large amount of the BZX tokens.
