What is bZx ?

bZx is a decentralized protocol on Ethereum for lending and trading with margin and leverage. The protocol and its native dapps are trustless and permissionless and impose no fees aside from the collection of 10% of earned interest for maintenance of an insurance fund for lenders. As of March 2020, bZx supports ETH, Dai, USDC, KNC, LINK, REP, WBTC, and ZRX. Liquidation penalties are limited to 200% of the gas paid to submit the liquidating transaction. The protocol's native governance token, BZRX, is currently locked from any use except payment of fees on bZx relayers. The community will decide on future uses; proposals include using BZRX as a tokenized claim on the bZx insurance fund. Lenders receive iTokens, which immediately begin earning continuously-compounding interest (rates adjust algorithmically based on supply and demand). Traders - who may enter long or short positions with up to 4x leverage - receive pTokens (p = position), which fluctuate in value based on their trades' performance. Both token types are freely transferable ERC20s. The bZx protocol hit the mainnet in summer 2018. Fulcrum - the bZx team's UX-focused lending and trading dapp - launched in June 2019. Torque, a product that offers fixed-rate, indefinite-term loans powered by bZx, launched in Oct. 2019. In Feb. 2020, major vulnerabilities in the bZx protocol were exploited using flash loans resulting in a loss of ETH and forcing the system to be paused. At this time, trading and borrowing are still disabled.