bZx AMA Recap

bZx AMA Recap

CryptoDiffer team

Hello, everyone!

We are glad to meet here:

Kyle Kistner (@KYLEbZx), CVO and Operations Lead

Chris Brennan (@CB_cryptalk), Lead Community Manager

Kyle Kistner, CVO and Operations lead at bZx

Hey folks!

Chris Brennan, Lead Community Manager at bZx

Hey guys! Great to be here

CryptoDiffer team

Let`s start from 3 introduction questions from our team

Q1: Can you introduce yourself to the community? What is your background and how did you join bZx?

Chris Brennan, Lead Community Manager at bZx

Hey Guys and Gals!  

I’m Chris Brennan, the Lead CM for bZx. I’ve been working in Crypto for a number of years now with a strong focus on community engagement and management. I came onboard with bZx earlier this year and couldn’t be more excited to be with them for what we have in store in the near future

Kyle Kistner, CVO and Operations lead at bZx

My name is Kyle J Kistner, I’m co-founder of bZx. I have a background in Computational Biology (MSc) and before blockchain worked in vaccine research. My co-founder Tom Bean and I met at a 4th of July party many years ago and started chatting about blockchain. In the summer of 2017, we had the idea for creating a decentralized margin lending and trading protocol, originally inspired by Bitfinex’s centralized peer-to-peer margin platform

CryptoDiffer team

Kyle you shared a bit how did you start bZx back in 2017, let`s explore this topic

Q2:  Let`s talk about the history of bZx, please share with us the most exciting milestones:)

Kyle Kistner, CVO and Operations lead at bZx

We went public in Jan 2018 and debuted at ETHDenver that year. In March our v1 contracts hit the testnet, and by August were on the mainnet. Originally we were a 0x-style orderbook-driven protocol, and our first integrator was BambooRelay. We had a number of 0x exchanges that were signing on to integrate. Our plan long term was to tokenize everything, which we detailed in an article with Maker in July of 2018. As we built our tokenized loans (iTokens) and tokenized positions (pTokens)  we realized that we’d need to move completely on-chain, and we also implemented an AMM. In July of 2019 we launched Fulcrum, our margin lending and trading platform, following by Torque, our borrowing platform. 

 

By Jan 2020 we were the fastest growing project in DeFi and we were sprinting up the DeFi Pulse charts. In Feb we were #7, our DAI pool had grown to become the largest behind Compound, surpassing dYdX. We were doing over 3MM in trading volume per day. We had a set back in Feb 2020 which caused us to need to pause the protocol. We have been refactoring the protocol and getting additional security audits over the last few months while also building out our Fulcrum PRO and Trade 2.0 interfaces. We anticipate that it will release again next month.

CryptoDiffer team

Q3: Can you share with us some exciting plans for future weeks/months?

Kyle Kistner, CVO and Operations lead at bZx

We’re unlocking the token in the coming days, relaunching the platform next month, and after that implementing our trias politicas model of governance, the bZxDAO.

CryptoDiffer team

Ok, thanks for such detailed and interesting answers!

Let’s move to the Telegram community questions part.

Cryptodiffer Community

How much tokens has been allocated for Staking?

Is it Simple for New guys to stake ?

Kyle Kistner, CVO and Operations lead at bZx

All tokens can stake, but only 60% of the tokens are eligible for fee sharing. Staking can be done in one click using our staking portal.

Cryptodiffer Community

How reliable are data received by bZx system?. What price feeds/Oracle providers bZx network use?

Kyle Kistner, CVO and Operations lead at bZx

Our oracle is powered by Chainlink. Each of our critical price feeds is secured by numerous independent nodes, which collectively source data from over 7 independent data aggregators.

Cryptodiffer Community

BZX please give 1 to 3 highlights to knock opponents and persuade users? What are the future plans for BZX to be No. 1 in the world?

Chris Brennan, Lead Community Manager at bZx

We dont want to knock opponents exactly, we believe there is more than enough market share in the industry for multiple platforms to operate. That being said of course we do want our own share of the market haha.

Our first point of difference is our design which is arguably the most decentralised in the business, entirely automated. This article covers it well (Although its slightly outdated, crypto moves quick lol).

https://hackernoon.com/how-decentralized-is-defi-a-framework-for-classifying-lending-protocols-90981f2c007f

Next would be our tokenomics which do have a number of unique attributes such as our fee sharing model and bootstrapping program. 

https://bzx.network/blog/bzrx-token

Cryptodiffer Community

I am a person who likes to hold my crypto. At the same time when the markets/tokens pump I like to have access to them. Margin trading terrifies me because though yes you can make a lot of money you can also lose a lot quickly. Knowing this what use would bZx be for me?

bZx has some great partnerships with Kyber, fulcrum, augur, etc. what new partnerships are you hoping to get into for the future and in what direction will that take bZx?

Kyle Kistner, CVO and Operations lead at bZx

Our target in terms of ”partnerships” are places like KyberSwap, MyEtherwallet, DeversiFi, IDEX, Loopring, and other DEXs, but we also have our eyes set on integrating our tokenized margin positions with centralized exchanges as well, (e.g., Kraken). 

If you were to do margin trading, bzx would be the place you want to do it. Unlike other platforms, we don’t have liquidation penalties. So if you get liquidated, it just locks in your P/L, it doesn’t take  an additional 5% of your money as a penalty.

Cryptodiffer Community

1. BZRX token 3rd version was released, why has it been necessary to switch from one version to another 2 times, what are the major improvements of V3? Holders of V2 need to do a swap of change to have the new tokens?

2. bZx is a platform with a solid vision and features, yet it was having a slow growth in terms of adoption, why was that, and what made credits take off this year?

Chris Brennan, Lead Community Manager at bZx

1. This is our 3rd iteration of the tokenomics but not our third token. We have been updating our tokenomics to meet the ever changing needs to the cryptosphere, and expect our DAO to continue to change with the times in future. The swap itself this time will be a one click migration tool 🙂 

https://bzx.network/blog/bzrxv1-token-migration

2. We were actually quite rapid with our growth earlier this year as Kyle mentioned, reaching 3m volume per day and 20m TLV. We expect to recapture this momentum when we relaunch

Cryptodiffer Community

Does the Fulcrum platform focus more on professional traders or does it also focus on beginners? What resources does it offer to educate about trading?

Kyle Kistner, CVO and Operations lead at bZx

Fulcrum at first focused on beginners, and we saw enormous traction as people appreciated the simple interface. In our upcoming launch, we’re going to be debuting Fulcrum PRO. It will have better charting, a “Coinbase Pro-style” interface, trading pairs, and other things more experienced traders are used to having.

Cryptodiffer Community

1) How can you make bZx add real meaning to our lives, I mean tangible things we can feel and not just some theoretical bullshits flying all around?

2) There are now numerous DeFi projects like compound, maker etc…. How can bZx stand out what will make you relevant in next 5 years from now?

Chris Brennan, Lead Community Manager at bZx

1) I answered this one in the above answers, I’d recommend reading my first reply and the tokenomics 🙂

2) We are constantly working on upgrading our protocol and interface, as well as creating and shipping new products. It is extremely important to continue to improve to keep up with the market and we don’t plan on dropping the ball in that regard

Cryptodiffer Community

There are three main tokens in the bZx system: iTokens, pTokens, and BZRX tokens. What is the main functions the whole tokens in bZX system?

Kyle Kistner, CVO and Operations lead at bZx

iTokens: when you make a loan, we tokenize it. You can then use that token to, for example, become an LP for an AMM like Uniswap or Balancer, earning fees on top of your interest. 

pTokens: when you make a trade, we tokenize it. This makes it easy for centralized exchanges, DEXs, and Hybrid DEXs to integrate us. At some point we anticipate that it can also be used as collateral. 

BZRX: Governance. Gives you a say on protocol upgrades and parameters. Gives you skin in the game.

Cryptodiffer Community

As You Know Ethereum network is one of the biggest in terms of liquidity 

but as wee see some problems with etherium is very Large fees, How do you plan to deal with it?

Chris Brennan, Lead Community Manager at bZx

Actually V2 of our protocol which is being released in August greatly reduces the fees required to use our protocol. We plan to continue working on this to keep gas fees at a minimum.

Kyle Kistner, CVO and Operations lead at bZx

Actually V2 of our protocol which is being released in August greatly reduces the fees required to use our protocol. We plan to continue working on this to keep gas fees at a minimum.

Cryptodiffer Community

1. Talking about lending, borrowers in DeFi, many booming projects in recent time such as Compound, Balancer, Maker…so what are the key points make bZx become different to compete with them?

2. Could you share me more details about two main products: Fulcrum and Torque, how are they unique and solve the real problem in life as well as DeFi space?

Chris Brennan, Lead Community Manager at bZx

1) Has been answered above in my first answer 🙂

2) Fulcrum is our decentralised margin trading and lending platform and Torque enables borrowing. This sort of functionality is a key component of centralised financial markets and we are proud to be able to offer them in a non-custodial, secure, and decentralised manner

Cryptodiffer Community

How do you plan to climb the ladder in the recently accumulated crypto world? Are you ready to launch a strong marketing campaign or establish a good connection in the cryptocurrency world?

Kyle Kistner, CVO and Operations lead at bZx

Thankfully, Fulcrum and Torque already have proven market fit and seem to have an unusually high level of retention. We were able to become the lending pool with the second largest DAI pool with relatively little awareness compared to others of a similar size. We believe that awareness of our products is much higher now, and that we are poised to capitalize on our superior ability to retain customers and keep them happy.

Cryptodiffer Community

To access Jarvis, do you plan to build your own wallet or APP? Or will it be possible to operate from anywhere, such as browsing TrustWallet?

Chris Brennan, Lead Community Manager at bZx

We are building our own wallet with zero fee fiat onramp (the early beta version is already on the mainnet and facilitated 40k USD of crypto purchase), but you will also be able to access our dApps through other wallets as well.

Cryptodiffer Community

Do you consider MakerDAO and Syntetix to be your competitors? What are the benefits of bZx Protocol in terms of functionality and security?

Kyle Kistner, CVO and Operations lead at bZx

MakerDAO and Synthetix compete with each other, but we are not competing with them. We consider them valuable technology partners. We look forward to more closely servicing the needs of SNX stakers in the future. The ability to obtain external hedging is important for those taking on counterparty risk by staking their SNX, and that’s something we’d like to facilitate in the future.

Cryptodiffer Community

Is there Any plan to Combine with other Blockchains as well?

What’s The main problem do you see in current Blockchain?

Chris Brennan, Lead Community Manager at bZx

We don’t have any plans to migrate to or integrate any other blockchains currently as it isn’t economically feasible. Although ETH can be congested at times it is where the overwhelming majority of users are. If this change down the line we will of course reconsider our stance. It’s important to be flexible in Crypto

Cryptodiffer Community

In January bZx became the fastest growing DeFi protocol on the market, What is the secret behind all that rapid growth?

Kyle Kistner, CVO and Operations lead at bZx

Seemed to be an extremely broad and organic increase in interest not localized to any one geographic area or one referrer. To some extent it’s a “build it and they will come” story. Believe me, we were quite curious what our trick was, too.

Cryptodiffer Community

How are margin loans better than traditional at interest rates? Why do you think it is safe?

Chris Brennan, Lead Community Manager at bZx

Loans that originate from decentralised platforms are generally better with their interest rates as there is little to no overhead paid. There isn’t a building to pay rent on, nor hundreds of staff to pay, nor office supplies and coffee+biscuits to purchase for the workerbees haha. It’s purely paying the interest to the person/pool it’s borrowed from based off an equation of supply/demand. 

It is safe because we ensure every loan is overcollateralized, giving a lot of leeway should things go awry 🙂

Cryptodiffer Community

Most important question I want to know – What’s about Transparency? 

AS security is one of the most important in DEFI project, BZX was hacked and 650000 dollars stolen. 

So, WHAT strategy you applied to make BZX more secure ?

Kyle Kistner, CVO and Operations lead at bZx

Security is top of mind for us, which is why took down the protocol to refactor it, go over the code in minute detail, and subject it to 20+ person-weeks of security audits. When we relaunch, we will be one of the most audited projects in DeFi. We also plan to launch the largest bug bounty in DeFi as well, which we believe is critical to maintaining the safety of the platform.

Cryptodiffer Community

What is your tokenomics for directly rewarding payers and lenders on the platform?

Chris Brennan, Lead Community Manager at bZx

Currently our tokenomics are focused on rewarding active participants in our platform, ie traders and borrowers who pay fees. 50% of fees paid will be reimbursed in vested BZRX + for the first 3 months we are giving away 0.25% of our total supply in vested BZRX split proportionately among fee payers.

We expect this to have a dramatic effect on our protocols initial uptake among defi users.

Cryptodiffer Community

 The BZRX is a Governance Token, so we can compared with Comp? Can you tell me the unique advantages of BZRX over others?

The Protocol says that the trading fee is 0.15% but this is the same to Makers and Takers?

Kyle Kistner, CVO and Operations lead at bZx

There are some comparisons to COMP to be made, though we believe our tokenomics are more sustainable and somewhat more sophisticated in terms of their value capture mechanisms. 

There are no ‘makers’ on Fulcrum at the moment, but limit orders are something we are looking to add in the near future.

Cryptodiffer Community

1. How does the bZx loan agreement determine the lender’s interest rate and how to protect it from attacks?

2. Are margin lenders willing to bear losses? If so, what is the protection mechanism.

Kyle Kistner, CVO and Operations lead at bZx

1) Interest rates are determined algorithmically by supply and demand. We use a piece-wise linear function similar in shape to an exponential curve, and this defines the interest rate given any ratio of supply and demand.

2) There is some degree of counterparty risk inherent to margin lending, but we have designed the protocol to protect against that via our insurance fund.

Cryptodiffer Community

Can we use MetaMask to use credit and margin services? Will you develop your own wallet for services?

Chris Brennan, Lead Community Manager at bZx

Yes you sure can! 

Fulcrum and Torque will be able to connect to Ledger, Metamask, Fortmatic, Portis, Bitski and more on relaunch 🙂

We don’t need our own wallet at this stage, but we do have our staking dashboard on the horizon

Cryptodiffer Community

As crypto users we don’t want to lose our assets to some scam projects that run away and disappear with our money but now have many super hackers so security, scalability, and data privacy are three aspects that are very important at enterprize level, how BZX foundation handle these issues?

Chris Brennan, Lead Community Manager at bZx

That is a completely understandable stance to have my friend! 

Thankfully with us you don’t need to worry so much, we are entirely non-custodial so it’s impossible for us to run off with your funds. 

In terms of security we are having 2 well respected security firms audit our V2 release, Certik and Peckshield. We are also planning on running an extensive bug bounty and have our asset risk framework on the way as well.

Cryptodiffer Team

Great answers;) Thank you @CB_cryptalk @KYLEbZx for your time and efforts

Thank you everyone for your questions!

Best wishes to bZx team from CryptoDiffer team !

Kyle Kistner, CVO and Operations lead at bZx

Thanks for having us, Maks. We appreciate the chance to answer the amazing questions from your audience. We really enjoyed it, and we appreciate the quality and thought that went into them.

Chris Brennan, Lead Community Manager at bZx

Thanks to everyone for attending the AMA today! I had a lot of fun and enjoyed answering your questions! 

Be sure to jump onto our socials and check out our products below! Just remember V2 of our protocol will go live sometime during August so look out for it 

And one last thing! Our token is being unlocked on July 13th at 10am EST so be sure to look out for it 

Telegram: @B0xNet

Fulcrum: Fulcrum.trade

Torque:  Torque.loans

Website: bzx.network

Blog: bzx.network/blog

Twitter: https://twitter.com/bzxHQ

Discord: https://bzx.network/discord

Github: https://github.com/bZxNetwork

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