Fulcrum Trade is for those who want a decentralized platform that supports margin trading. Its framework is built from Ethereum while it uses 0x protocol to support its spread by pulling funds together into a pool that will be used for lending. In addition, one cannot talk about bZx without reflecting on its relationship with the Ethereum Name Service (ENS). This essence was to make sure every asset and style of trading were recognized in a unique way so that users can appreciate their purposes and usefulness.
What it costs to lend on Fulcrum
Assets to lend on Fulcrum include ETH, USDT, LINK, KNC, USDC, and DAI. Their interest rates are at 17.21%, 8.26%, 1.56%, 4.14%, 12.55%, and 7.91% respectively.
Fulcrum Trade designed a website, fulcrum.trade, to help users serve themselves with the latest from their services including all bZx smart contracts. Loans and margins can be converted into the ERC20 assets so that they can be used for loans as iToken and for margin trading as pToken.
Not too long ago, bZx started making plans to introduce a product called Torque for users who would want loans that have no time limit and interest rates that cannot be changed. If Metamask or some other Web 3.0 wallets are used, Torque and the ENS will work perfectly to enable members to take assets of their choice on the platform since the ENS domain can accept collateral. What’s more is that there are no fees required to initiate a loan when using Torque.
How bZx started
bZx used to be called b0x when it was launched three years ago. They were majorly known for their involvement in giving ETHDenver last two years. The white paper of the firm was released in February 2018. Two months later, it started its testnet which paved way for the mainnet four months after the testing was finished. As plans began to work out, b0x decided to change its name to bZx. The main reason for this was explained by one of its founders, Tom Bean:
“To make the zero-x aspect of our identity clear and prevent confusion with any companies or protocols named Box.”
After bZx took over, its primary aim has been to partner with the big names such as MakerDAO, Augur, and ChainLink. In addition to providing two products carefully designed to meet users’ needs, bZx has not relented in making sure every member gets the best of what DeFi has to offer. Kudos to the company for being up and doing in releasing what members need almost every time. It is focused on making the future bright for both the industry and members.
Who’s on board?
The website says bZx is made up of three counselors and eight other people. All the 11 members focus on developing products, and they have been doing so since April 2018 when the mainnet was launched.
The man who began bZx is no other than Tom Bean. He was a man with big dreams and believed in getting what he wanted. Tom Bean used to work for well-established car companies that knew what GPS technology was all about. He learnt Solidity by himself and partnered with Kyle Kistner who is presently the COO to write the vision and white paper of bZx. Apart from these two gurus, bZx has a lot of other experienced members who know things about iOS applications and decentralized apps of Ethereum.
The aim of the system is to make a margin loan available to a borrower from a lender after the both have connected through a Relayer. As the borrower makes use of the money, some people are tasked with the responsibility to know how effective the borrower is using it and to know if he or she can pay back—they are called the bounty hunters. If the hunters discover that the borrower is not in the position to pay back, they quickly alert the system to start a liquidation process that will ensure the lender does not lose. Anything the borrower decides to do with the loaned tokens is fine and he may also decide to keep some aside just in case there will be a need to settle the loan earlier than expected.
Another advantage of lending through bZx is that there is minimal possibility of losing since lenders are protected by insurance fund. The insurance fund is the sum of 10% profits made by every lender.
Moreso, bZx believes that with its native token, it can cater well to the needs of every stakeholder.
The native token
bZx has a token which it called BZRX. The token serves as a medium for settling trading fees. bZx has also decided to make holders of the token more recognized during governance, when key decisions about the future of the protocol will be discussed.
Moreover, it is good for lenders to have as many BZRXs as possible because with them, they will get a share of the insurance fund according to the right their tokens give to them. Actually, a stop was put to this function but there is still a possibility to revive it if token holders vote for it. In other words, as a BZRX holder, there is no way insurance funds will be shared without giving you your deserved portion.
It isn’t good to forget that b0x network organized an ICO two years ago which led to its realizing $7.8M even though it wished to get up to $36.5M. This can be said to be the reason why the tokens are not used for trading especially among those who are not of U.S. origin.
To conclude, don’t forget that bZx has a different, but interesting way for users to trade margin on a protocol that is decentralized. Although members of bZx are getting some financial rewards, more is yet to come by the time the 0xMesh tokens are launched. Moreso, with the way things are going, decentralized margin lending will be an area of specialization in the future of bZx.
From the aforementioned, it can be concluded that bZx is leaving no stone unturned in promoting its presence. For example, it is in partnership with some big names such as UX. You can see the write-ups for this company through The Medium.