bZx is an Ethereum-based protocol that is used for lending (supply and demand) for margin trading. The decentralized protocol is easily integrated into new and existing exchanges or accessible via the native bZx portal.
The advantages of using bZx are directed to lenders, traders and DEXs – decentralized exchanges.
Both lenders and traders can benefit from interest and margin trading respectively without moving their assets to centralized exchanges. Meanwhile, DEXs integrating bZx will see an increase in volume, improved functionality and income from trading fees.
The native token of the protocol is BZRX and is essentially a combination of medium of exchange and governance token. Basically, all margin trading fees for relays must be paid in BZRX.
The protocol collects 10% of all interests earned by lenders and aggregates it into an insurance fund. This fund is designed to pay out in case a lender loses money from a borrower that has not been settled quickly enough.
The bZx interest-bearing tokens are the ERC20 tokens: iToken and pToken.
Lenders can earn interest by minting iTokens like iDAI and iUSDC; they automatically accumulate interest using algorithmic logic.
Traders, who can enter long or short positions with up to 4x leverage, receive pTokens (p = position), which fluctuate in value depending on the performance of their trades.