bZx, the protocol that powers decentralized margin trading, announces a strategic partnership with Chainlink, the leader in trusted oracle services. bZx will incorporate Chainlink’s functionality to build a separate oracle solution on top of the base bZx protocol.
The bZx protocol has two layers: the base layer protocol and the oracle layer. The current bZx oracle solution offers margin lending and margin trading with ultra-fast settlement times for all 60+ tokens supported by the KyberNetwork. Outside of these tokens, however, there is a vast assortment of additional use-cases for the base protocol. For example, ERC721s and ERC20s would also benefit from the on-chain liquidity and prices provided securely by the bZx protocol.
By using Chainlink, bZx can enable a separate oracle solution on top of the base bZx protocol. This opens up a much wider range of bZx integrations from which liquidity can be pulled by querying the APIs of other networks, such as 0x relays, for order objects. The relays could also be queried for current prices. We encourage future participants at hackathons we sponsor (ETHSingapore and ETHDenver) to focus on building a Chainlink-based oracle for the bZx protocol.
“Chainlink is critical infrastructure for any protocols that don’t want to rely completely on on-chain data or sacrifice decentralization. There are many possible margin call mechanisms we have envisioned being built on top of our protocol, but we see Chainlink as being integral to enabling completely decentralized margin calls with ultra-fast settlement time for tokens that aren’t listed on on-chain DEXs.”
— Tom Bean, Co-founder and CEO at bZx
bZx sees the partnership with Chainlink as a key step in the vision of ushering a new generation of decentralized exchanges powered by the bZx protocol.
bZx is a protocol on the Ethereum blockchain for 0x-standard relays and on-chain DEXs. The bZx protocol allows DEXs powered by both 0x and Kyber Network to offer shorting and leverage. bZx currently has the largest variety of tokens for margin trading including ETH, ZRX, EOS, BAT, REP, DAI, OMG, REQ, ZIL, LINK, DGX, PAY, and dozens of others. The protocol consists of an open base layer that performs the essential functions of escrow and interest disbursement and a second layer that can be freely built upon to create advanced functionality for the base layer, including ultra-fast margin settlement and pooled lending. Unlike other solutions, the bZx protocol avoids slow Dutch Auctions that can take hundreds of blocks to settle, instead providing a high-speed margin settlement system on the second layer that can settle in as little as a single block, allowing shorting of even the most volatile ERC20 tokens for a wide range of leverage.
Chainlink is a decentralized oracle network that enables smart contracts to securely access off-chain data feeds, web APIs, and traditional bank payments. Chainlink is consistently selected as one of the top blockchain technologies by leading independent research firms such as Gartner. It is well known for providing highly secure and reliable oracles to both large enterprises (SWIFT) and leading smart contract development teams.