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bZx | Project Overview

Hello friends today we will consider an excellent project bZx – «A protocol for next generation (b)0x-standard relays». Let's get started!

Today, blockchain technologies are developing very rapidly. The main idea of blockchain technology is decentralization. Decentralized exchanges and other blockchain projects were created. We all understand that the future is behind decentralization.

It is the first fully decentralized, peer-to-peer margin funding and trading protocol. bZx is built on Ethereum and integrated with the 0x protocol. bZx is not itself an exchange, but a protocol that can be integrated into the current exchange infrastructure. Exchanges and relays are incentivized by fees denominated in the BZRX protocol token (BZRX) to offer decentralized margin lending and margin trading services. Assets are valued and liquidated via competing oracle providers. By decoupling the valuation and liquidation of assets from the protocol, the oracle marketplace approach allows competition to drive the oracle provider fee to its marginal cost while encouraging experimentation and flexibility. The advantage of the project is that it is not just an exchange but also a protocol.

In the wake of the 0x revolution, a new generation of decentralized exchanges (DEXs) are taking root. These decentralized exchanges address some of the existing problems with older DEXs, while still lacking the capabilities of many of the leading centralized exchanges. Individuals looking to engage in margin lending or margin trading are still forced to funnel their liquidity to centralized token and coin exchanges, exposing them to an additional form of counterparty risk. Decentralized margin comes with significant technical challenges. The most significant challenge is the design of a reliable oracle that can match the settlement security of centralized exchanges. In the context of margin lending, the oracle problem is caused because Ethereum contracts are not natively aware of asset prices on or off the blockchain. If smart contracts can’t stay aware of asset prices on the open market, they can’t consistently force-liquidate borrowers on that market to protect lenders from adverse movements. The most serious obstacle to decentralized margin lending is being able to reliably and securely liquidate troubled positions. The bZx protocol serves as an on-chain solution to these challenges. This project will be very relevant as it includes decentralization and margin trading.


bZxOracle is fully decentralized and operates partially off-chain. When creating an order, an oracle provider must be specified. If the bZxOracle is specified, then anyone can call the liquidateTrade contract method and receive a bounty when the proper conditions are met. Support is provided at the protocol level to allow third-party oracles to impose whatever constraints necessary on when the liquidateTrade method can be called. With bZxOracle, bounty hunters keep track of all open trades taken using bZx, determining whether any have gone below margin maintenance. This pushes the most computationally intensive tasks off-chain. When a bounty hunter has determined that a position has gone below margin maintenance, they call into bZx to liquidate the trade with bZxOracle. Bounty hunters will be paid a bounty to compensate them for the gas spent calling the contract and the resources spent monitoring margin account health off-chain.


The BZRX token is a utility token with two main functions:

  1. The incentivization of order book aggregation by relays
  2. Governance of the bZx protocol

The BZRX token functions for the bZx protocol much like the ZRX token functions for the 0x protocol. Both tokens coordinate networks of rational economic agents around a protocol. Both are used to facilitate continuous, decentralized updates to the protocol.



In my opinion, the project has a great chance of success. Margin trading today is in demand and popular among traders. Project is decentralized and seeks to develop margin trading. This project is not just a decentralized exchange, but a protocol. This makes this project even more interesting and successful. I believe that this is the future. I want to wish the team success!

ANN Thread:

My username Bounty0x: kable

Comments 1

@nikitagrigs Классная статья, @nikitagrigs!Классная статья, @nikitagrigs!

02.08.2018 17:49