ICO Review: bZx transforming the HODL of ERC20 tokens
bZx is building a protocol that will allow decentralized exchanges (DEX) to integrate margin trading solutions within their platforms. The proposed protocol will allow users to safely lend their ERC20 tokens, while expanding their token stash and providing luqidity to the exchanges.
Project name: bZx
Token symbol: BZX
White paper: BZX Whitepaper
Hard cap: $36.5 million for 50% of the tokens
Conversion rates: 1 BZX = $0.0730
Maximum market cap at ICO on a fully diluted basis: $73 million
From the beginning of the crypto boom, there was always an ongoing conversation about the security of the crypto exchanges and the high operating fees. Following its nature, the innovative crypto market came to a solution and introduced the decentralized exchanges (DEX). These exchanges allowed users to safely store their own private keys, without having to worry about hacker attacks, while offered minimized trading fees. Currently, there are numerous of operating DEXs and yet all of them are facing the same important issues – a shortage of liquidity, large trading spreads and lack of both trading features and user-friendliness. The bZx is trying to resolve these problems by introducing the decentralized margin-lending. Basically, the bZx protocol acts as a three-way win situation.
First, the DEXs will be able to offer margin trading, a concept which for them was an enormous technological challenge. By implementing the margin trading on their platform these exchanges will provide more liquidity to their customers and simultaneously lower the gap between asks and bids.
Secondly, crypto traders will now be able to margin trade directly on the decentralized exchanges, without having to move their funds to other centralized exchanges and exposing their investment to counterparty risks. This feature will basically make all DEXs as efficient as the centralized crypto exchanges.
Finally, the HODL investors will be able to earn more tokens while lending their long-term investments to the margin traders. This is a complete game changer for the crypto enthusiasts who are worried about their investments. Multiple hacks in the past like the MtGox in 2014, left crypto investors really scared for their funds. People started buying cold storage wallets and forget about their crypto. The fact that Ledger crypto wallets sold 1 million devices for 2017 is enough to get the idea. Using the bZx solution, all these crypto investors can start earning interest on their coins while still locking them in their cold storages. In addition, they will also support the DEXs by essentially increasing their volume.
All in all, the bZx project offers unique and vital innovation to the decentralized marketplace.
The bZx token is a utility token based on the 0x-standard relays. The token will be used within the bZx protocol which will be operating on two separate layers.
The protocol layer contains the b0x.sol and b0xVault.sol contracts, which are basically responsible for the margin orders, escrow of funds and the decentralized governance. This is where the bZx token will be used to facilitate seamless and decentralized contract updates. Similar to the ZRX token (0x protocol) the bZx token will be also used to incentivize relays to aggregate order books. In simple terms, the bZx protocol will be governed by the bZx token, hence the value of the token will be correlated to the use of the protocol.
The Oracle layer will deal with liquidations of margin trades and the health of the margin accounts.
The team behind the innovative bZx protocol consist of software engineers with plenty of years of experience behind their backs. In addition, on the 10th of July 2018, they launched their Mainnet, which can be seen on the website. Their GitHub is constantly updating and full of commits from all members of the team. In addition, advisors of the team are the founder of Etherland Stani Kulechov and the product manager of district0x Alexander Khoriaty.
The bZx protocol is a really innovative proposition, which will definitely contribute to the overall crypto market. The decentralized exchanges are constantly improving their platforms while simultaneously increasing their userbase. This is creating a very positive market environment for implementing the bZx’s unique margin trading. In addition, the team partnered with the KyberNetwork exchange and the protocol should be up and be operating anytime soon, which is another positive sign.
On top of that, once the general crypto market became aware of the potential to earn interest while holding, we believe the user base of the bZx protocol will drastically increase. The potential to make money, while doing essentially nothing is appealing to everyone.
To sum it up, the bZx unique value proposition and technical innovation are at a really high level.