bZX Protocol
Landing protocol for decentralized exchanges
One of the main features of cryptocurrency is undoubtedly decentralization, which means that assets are separated from central banks and institutions. However, the most used crypto exchanges are still not decentralized. The main reason for this is undoubtedly a small liquidity in these exchanges, which prevents the user from finding a large number of exchange pairs, and therefore, a lower value of the changed assets can occur. Decentralized exchange offices provide greater security for the user since the user has all the keys in its possession. Despite the fact that more and more of these media and users are saying that these exchanges are the future, users still do not use them as much as centralized exchanges.

Due to the low liquidity at decentralized exchange offices, the BZx protocol was created, which will solve this problem. It is a decentralized protocol that allows lending and borrowing for margin tradings. The application of this protocol will benefit decentralized exchanges, lenders and traders. Lander will be able to finally lend funds on a decentralized exchange, thereby increasing the security of its assets. A trader will also be able to use margin trade at decentralized exchange offices and, like a lander, he will not endanger the safety of his assets. However, the protocol will benefit the decentralized exchange offices, which will be used more and will have more traffic. In the end, the use would also be beneficial to all of us who deal with the cryptocurrencies, as it will increase the use of decentralized exchange offices increased liquidity, the number of users and consequently also increased the value of a particular trading pair. Their platform will use the BZRX token, which will be used to pay all margin trading fees. As they say, the protocol will be easy to use and to integrate into the exchange offices. And it will allow different ways of using:
-Long position: is a way to easily replace one token for another.
-Short Position: It’s a way to bet that the value of a token will fall in a given time. To use this method, escrow, leverage and margin calls are required.
-Leveraged position: It’s the same procedure as a short position, but you can use more resources here than you have (you can borrow funds)
I think that there are quite a few decentralized exchanges in the market, which have an extremely simple user interface and are pleasant to use. The main problem of these exchanges is undoubtedly liquidity. I am convinced that a protocol like BZx would greatly increase the number of users at those exchanges because it would increase their value and usefulness. Decentralized margin trading is important for the future. I know quite a few traders who are not using decentralized exchanges because they don’t have margin trading enabled. I think that lenders will also use decentralized exchanges more often. That is why I believe that this project has a bright future in front of it.
If you want to know more about BZx protocol you are more than welcome to
visit their website:https://b0x.network/
or read their whitepaper: https://b0x.network/pdfs/bZx_white_paper.pdf
“This article was created in exchange for a potential token reward through Bounty0x” tikezza33