bZx Makes Decentralized Exchanges Practical
Decentralized exchanges need functionalities like margin lending and clearinghouses. bZx makes these possible through trustless smart contracts.
Why Is Decentralized Margin Trading Better?
Whether you’re a lender or borrower, you stay in control of your keys. Never worry about exchanges getting hacked or stealing your funds.
Make money with the assets you already hold in your wallet without giving up control of them. Interest rates on margin loans are often much higher than traditional loans while being far safer.
Traders on centralized exchanges pay higher interest rates to compensate lenders for the risk of the exchange getting hacked. Decentralized margin lending makes trading more affordable.
bZx Solves Decentralized Exchange Liquidity
Decentralized exchanges have two big issues: low liquidity and large spreads. Low liquidity means that there is a low volume of buyers and sellers. This can result in worse prices or difficulties filling large orders. Large spreads are caused by large gaps between bids and asks. This imposes large costs for entering and exiting positions. bZx bridges centralized and decentralized liquidity pools using tokenized margin loans. With bZx’s Universal Liquidity, you get access to the entire margin lending market. This means less slippage and tighter spreads.
Safer, More Stable Margin Lending
bZx pools loans together in a decentralized clearinghouse. Lenders can lend to a whole pool of people, averaging risk across many borrowers, allowing for a more predictable income stream. All bZx loans are insured with the bZx guarantee fund.
Decentralized Margin Trading Powered by bZx
The BZRX token is used by relays to collect trading fees. Token holders decide how to upgrade the bZx protocol.
How bZx Works
Taking a long position involves a simple swapping of one asset for another. For example, you could swap DAI for ETH because you think ETH will go up in value faster than DAI.
Taking a short position is more complicated. A short position is betting that something will go down over time. Short positions require escrow, leverage, and margin calls.
Leveraged positions use the same mechanics as short positions, but with leveraged positions you’re able to borrow more than you have. For example, you could go 100x long on Ethereum.