X

Feedback + Support

Need Assistance? Notice something missing or broken? Let us know!

Press esc to dismiss

No icon fallback

BZRX

BZRX
n/a

bZx is an Ethereum-based, decentralized cryptoasset lending protocol that facilitates margin trading of ETH and ERC-20 tokens.

Overview

Project Stage

Live status icon

Amount Raised

Market Cap

Sector

Exchange

Blockchain

Ethereum token icon

Ethereum

Funding Source

Project Profile

bZx is a decentralized cryptoasset lending protocol primarily intended to facilitate margin trading of ETH and ERC-20 tokens. Operating on Ethereum, the core bZx ecosystem consists of a series of solidity-based smart contracts and three native ERC-20 assets: iTokens, pTokens and BZRX. Notably not itself an exchange, the bZx protocol is currently instantiated by integrations into various third-party decentralized exchanges, as well as the project’s three native DeFi products: bZx Portal, Fulcrum, and Torque. Further, bZx has fostered an extended decentralized financial ecosystem, consisting of wallets, exchanges and cryptoasset management tools with which its protocol interacts and/or powers. The team behind bZx is led by CEO Tom Bean, a former Nokia engineer, and CVO Kyle Kistner, a former molecular biological researcher at Georgia State University.

Base Protocol Details

The bZx protocol is a cryptoeceonmic primitive enabling the trustless margin lending of cryptoassets in decentralized environments. Such lending for the purposes of margin trading offers potentially lucrative returns for both lenders, who earn interest on cryptoassets loaned, and traders, who earned returns on short and leveraged positions. However, hitherto available only on centralized exchanges, potential profits from margin lending for both parties were lost, as many traders were unwilling to accept the counterparty risk associated with custodial exchanges, and lenders had no means of servicing traders via decentralized exchanges. bZx, rooted in the 0x protocol for decentralized trading of Ethereum-based assets, seeks to facilitate margin trading through non-custodial DEXs as well as its own platforms, negating certain counterparty risk; with loaned assets secured by smart contracts rather than centralized ledgers, decentralized margin lending carries with it lower costs, as it negates high risk premiums resulting from third-party possession of one’s private keys.

While exact procedures vary by implementation, the core bZx protocol is comprised of a series of Ethereum-based smart contracts, with the bZx.sol contract acting as coordinator of and ultimate authority over all sub-contracts. At a high level, the lending process is catalyzed by either lenders or borrowers sending a request for matching to bZx.sol via a third-party application acting as a relay (i.e. a DEX interface, into which the bZx protocol has been integrated). Once counterparties are matched and loan parameters finalized, bZx smart contracts trustlessly facilitate the transfer of the specified asset from the lender to the borrower, and the transfer of the borrower’s collateral to bZx’s centralized pool; in exchange, the lender receives iTokens or pTokens—depending on the type of loan—which represent a commensurate claim to assets held in pool as well as accrued interest.

Individual loans are overseen by custom oracle contracts, which are submitted to and selected from an open, fee-based marketplace by oracle providers and loan counterparties, respectively. The open-source oracle smart contracts are solely responsible for monitoring the loan’s maintenance margin and, when deemed necessary according to external price feeds, initiating liquidation of its collateral. Alternatively, counterparties may choose to employ the protocol’s native bZxOracle contract, which performs the same liquidation functions as custom oracle contracts but instead relies on public ‘bounty hunters’ to indicate inadequate collateralization levels, triggering liquidation, in exchange for a percentage of oracle fees.

To close out a loan position, the lender simply sends their iTokens or pTokens back to the bZx contract, where they will be burned; doing so initiates an atomic swap, instantly returning to the lender their principal and accrued interest from bZx’s capital pool. Loans may be closed by the lender at any time without impacting the borrowers, so long as the network’s total loan utilization does not surpass 100% (in which case, a queue is formed and lenders are gradually reimbursed on an ongoing basis). Conversely, one may ‘exit’ a position by simply selling one’s iTokens or pTokens on the open market.

Product Details

In addition to integrations into third-party exchanges, the bZx protocol underlies bZx’s three native DeFi products:

  • bZx Portal is the first live implementation of the bZx protocol, serving as a native alternative to DEXs for accessing bZx’s decentralized margin trading services. The portal broadly facilitates the full spectrum bZx’s functions, and is divided into four sections: an order book for matching borrowers and lenders; a section for borrowers to manage borrowed funds and associated trades and a corresponding, reciprocal section for lenders to do so; and a section for bounty hunters to monitor trades and request liquidation.

  • Fulcrum is bZx’s primary platform intended specifically for non-custodial, tokenized lending and margin trading, facilitating both activities directly on the dApp itself. The platform supports the minting and burning of iTokens and pTokens for the leveraging, shorting and lending of ERC-20 assets, while requiring no KYC measures. The open-source platform also maintains its own iToken and pToken lending pool, as well as an insurance fund to mitigate the risk of socialized clawbacks.

  • Torque employs the bZx protocol to offer indefinite-term, fixed-interest rate loans. Loans made on Torque funded directly by Fulcrum’s iToken lending pool and request are made through a base protocol order with a duration parameter of zero. As such, Torque loans are overcollateralized by ETH or any ERC-20 asset, including perpetual maintenance of three month’s interest, held in Fulcrum’s iToken contract; thus, those holding iTokens from loans made on Fulcrum also earn a claim to interest and collateralizing assets from Torque transactions.

Additionally, bZx.js is a publicly available asynchronous JavaScript library offering tools for development on and incorporation into third-party applications of the bZx protocol. That is, the library contains functions necessary for exchanges and relays to interact with bZx smart contracts on Ethereum, establishing funding tabs on exchanges in a manner analogous to 0x.js’s establishment of frontends on exchanges.

The differences, from an end user’s perspective, between bZx and other margin trading protocols vary by the former’s given instantiation—i.e. Fulcrum operates with a higher degree of centralization than does bZx Portal. In general, however, the core bZx differentiates itself from other margin lending protocols, such as Compound and MakerDAO, through its decentralized sourcing of price feeds and interest rates for DEXs and their order books; in contrast, Compound and other peers do not employ DEX order books, nor do they utilize data therefrom, instead maintaining whitelisted price feeds and centrally-controlled interest rates.

Project Status

Conceived in 2017, bZx released its official whitepaper in February of 2018. Two months later, the bZx protocol was initially launched via the Ropsten Testnet. The release of bZx Portal and bZx.js occurred in the days immediately following. In contrast to many of its contemporaries, bZx conducted its token sale several months after the release of its first implementation on Ethereum’s testnet. Though the project raised $8M in ETH from the sale of 7.3M BZRX tokens (22% of total supply), it fell significantly short of its $36.5M hard cap (which would have accounted 500M tokens, 50% of the total BZRX supply). Fulcrum and Torque, joining bZx Portal as the project’s native instantiations of the bZx protocol, were launched in June and October of 2019, respectively.

Protocol Exploitations

In February of 2020, bZx lost $945,000 of assets held in its collateral pool as the result of two consecutive protocol manipulation events. In the first instance, an attacker was able to exploit a “logic bug” in the protocol’s lending mechanism, completing a complex series of transactions across multiple prominent DeFi platforms, ultimately netting $300,000 in profit from bZx’s collateral pool. At a high level, the maneuver involved ETH, obtained via a flash loan from dYdX, being used to collateralize a wBTC loan on Compound and a ETH:wBTC short position on Fulcrum, thus obtaining a large number of wBTC from both transactions; additional ETH was then borrowed and swapped for wBTC via the Kyber protocol, effectively driving up the wBTC price on Uniswap. Finally, the attacker uses Uniswap to sell the wBTC for on Kyber and Compound, allowing them to pay back the initial flash loan and exit with a profit of 1,200 ETH. Notably, the attack did not involve any direct security breaches of coding, but rather ‘legitimately’ profited from arbitrage, exploiting mass slippage resulting from bZx’s—and, in general, DeFi’s—illiquidity.

One day later, a second attack took advantage of flaws in bZx’s oracle mechanisms to profit $645,000 from the platform’s ETH pool. As with the previous attack, this exploitation targeted a procedural inefficiency rather than a coding vulnerability. That is, the attacker obtained ETH through a bZx flash loan, used a portion of the ETH to purchase sUSD from Synthetix, and then used the sUSD to collateralize a second bZx ETH loan. They then used another portion of the flash loaned ETH to articifially inflate the price of the dollar-pegged stablecoin to $2, effectively deceiving bZx’s oracle into offering a disproportionate exchange rate and allowing them to convert all sUSD positions back to ETH a net gain of 2,378 ETH, derived from bZx’s ETH pool. In response to this attack, bZx announced it would incorporate Chainlink’s oracle middleware into its protocol according to an accelerated timeline.

Asset Details

While myriad cryptoassets exist within the bZx ecosystem, three types of digital assets perform key functions of the bZx protocol’s core token economy:

  • iTokens are a class of assets representing a pro rata claim on the funds held in the lending pool, including accrued interest. Lenders receive freely-tradable iTokens upon finalization of a loan agreement may redeem them for due funds at any time via burning in a bZx smart contract or through selling them on the open market. iTokens are individual, fungible ERC-20 compliant assets named according to the asset underlying their associated loan; examples of iTokens include iLINK, iBAT, iREP and iETH.

  • pTokens function similarly to iTokens but are used exclusively when a trader wishes to enter a short position. Like an iToken contract, when called, a pToken contract distributes pTokens to the lender and appropriate assets from the lending pool to the borrower. However, pToken contracts take the additional step of calling the KyberSwap contract to initiate an exchange of the borrowed asset (thus shorting it). pTokens are also fungible, freely-tradable ERC-20 assets. Both iTokens and pTokens have an unfixed supply and come into existence only through participation in lending.

  • BZRX is the project’s native governance token that serves as the primary medium of exchange within the bZx ecosystem. In addition to being freely-tradable across external exchanges, these ERC-20 assets may always be redeemed for an equivalent amount of diversified assets held in the lending pool. As relay fees are paid in BZRX, such an ability to exchange BZRX seeks to avoid issues faced by the 0x protocol: namely, ZRX struggled to retain value as relays either exchanged their ZRX fees immediately or performed duties for no fees at all. Most importantly, however, BZRX ownership confers a pro rata claim to assets held in the protocol’s insurance fund.
No icon fallback

bZx

BZRX
n/a

bZx is an Ethereum-based, decentralized cryptoasset lending protocol that facilitates margin trading of ETH and ERC-20 tokens.

Overview

STATUS

MARKET CAP

BLOCKCHAIN

TOKEN TYPE

Live status icon
Live
Ethereum token icon

Ethereum

N/A

FUNDING SOURCE

AMOUNT RAISED

SECTOR

Exchange

Project Profile

bZx is a decentralized cryptoasset lending protocol primarily intended to facilitate margin trading of ETH and ERC-20 tokens. Operating on Ethereum, the core bZx ecosystem consists of a series of solidity-based smart contracts and three native ERC-20 assets: iTokens, pTokens and BZRX. Notably not itself an exchange, the bZx protocol is currently instantiated by integrations into various third-party decentralized exchanges, as well as the project’s three native DeFi products: bZx Portal, Fulcrum, and Torque. Further, bZx has fostered an extended decentralized financial ecosystem, consisting of wallets, exchanges and cryptoasset management tools with which its protocol interacts and/or powers. The team behind bZx is led by CEO Tom Bean, a former Nokia engineer, and CVO Kyle Kistner, a former molecular biological researcher at Georgia State University.

Base Protocol Details

The bZx protocol is a cryptoeceonmic primitive enabling the trustless margin lending of cryptoassets in decentralized environments. Such lending for the purposes of margin trading offers potentially lucrative returns for both lenders, who earn interest on cryptoassets loaned, and traders, who earned returns on short and leveraged positions. However, hitherto available only on centralized exchanges, potential profits from margin lending for both parties were lost, as many traders were unwilling to accept the counterparty risk associated with custodial exchanges, and lenders had no means of servicing traders via decentralized exchanges. bZx, rooted in the 0x protocol for decentralized trading of Ethereum-based assets, seeks to facilitate margin trading through non-custodial DEXs as well as its own platforms, negating certain counterparty risk; with loaned assets secured by smart contracts rather than centralized ledgers, decentralized margin lending carries with it lower costs, as it negates high risk premiums resulting from third-party possession of one’s private keys.

While exact procedures vary by implementation, the core bZx protocol is comprised of a series of Ethereum-based smart contracts, with the bZx.sol contract acting as coordinator of and ultimate authority over all sub-contracts. At a high level, the lending process is catalyzed by either lenders or borrowers sending a request for matching to bZx.sol via a third-party application acting as a relay (i.e. a DEX interface, into which the bZx protocol has been integrated). Once counterparties are matched and loan parameters finalized, bZx smart contracts trustlessly facilitate the transfer of the specified asset from the lender to the borrower, and the transfer of the borrower’s collateral to bZx’s centralized pool; in exchange, the lender receives iTokens or pTokens—depending on the type of loan—which represent a commensurate claim to assets held in pool as well as accrued interest.

Individual loans are overseen by custom oracle contracts, which are submitted to and selected from an open, fee-based marketplace by oracle providers and loan counterparties, respectively. The open-source oracle smart contracts are solely responsible for monitoring the loan’s maintenance margin and, when deemed necessary according to external price feeds, initiating liquidation of its collateral. Alternatively, counterparties may choose to employ the protocol’s native bZxOracle contract, which performs the same liquidation functions as custom oracle contracts but instead relies on public ‘bounty hunters’ to indicate inadequate collateralization levels, triggering liquidation, in exchange for a percentage of oracle fees.

To close out a loan position, the lender simply sends their iTokens or pTokens back to the bZx contract, where they will be burned; doing so initiates an atomic swap, instantly returning to the lender their principal and accrued interest from bZx’s capital pool. Loans may be closed by the lender at any time without impacting the borrowers, so long as the network’s total loan utilization does not surpass 100% (in which case, a queue is formed and lenders are gradually reimbursed on an ongoing basis). Conversely, one may ‘exit’ a position by simply selling one’s iTokens or pTokens on the open market.

Product Details

In addition to integrations into third-party exchanges, the bZx protocol underlies bZx’s three native DeFi products:

  • bZx Portal is the first live implementation of the bZx protocol, serving as a native alternative to DEXs for accessing bZx’s decentralized margin trading services. The portal broadly facilitates the full spectrum bZx’s functions, and is divided into four sections: an order book for matching borrowers and lenders; a section for borrowers to manage borrowed funds and associated trades and a corresponding, reciprocal section for lenders to do so; and a section for bounty hunters to monitor trades and request liquidation.

  • Fulcrum is bZx’s primary platform intended specifically for non-custodial, tokenized lending and margin trading, facilitating both activities directly on the dApp itself. The platform supports the minting and burning of iTokens and pTokens for the leveraging, shorting and lending of ERC-20 assets, while requiring no KYC measures. The open-source platform also maintains its own iToken and pToken lending pool, as well as an insurance fund to mitigate the risk of socialized clawbacks.

  • Torque employs the bZx protocol to offer indefinite-term, fixed-interest rate loans. Loans made on Torque funded directly by Fulcrum’s iToken lending pool and request are made through a base protocol order with a duration parameter of zero. As such, Torque loans are overcollateralized by ETH or any ERC-20 asset, including perpetual maintenance of three month’s interest, held in Fulcrum’s iToken contract; thus, those holding iTokens from loans made on Fulcrum also earn a claim to interest and collateralizing assets from Torque transactions.

Additionally, bZx.js is a publicly available asynchronous JavaScript library offering tools for development on and incorporation into third-party applications of the bZx protocol. That is, the library contains functions necessary for exchanges and relays to interact with bZx smart contracts on Ethereum, establishing funding tabs on exchanges in a manner analogous to 0x.js’s establishment of frontends on exchanges.

The differences, from an end user’s perspective, between bZx and other margin trading protocols vary by the former’s given instantiation—i.e. Fulcrum operates with a higher degree of centralization than does bZx Portal. In general, however, the core bZx differentiates itself from other margin lending protocols, such as Compound and MakerDAO, through its decentralized sourcing of price feeds and interest rates for DEXs and their order books; in contrast, Compound and other peers do not employ DEX order books, nor do they utilize data therefrom, instead maintaining whitelisted price feeds and centrally-controlled interest rates.

Project Status

Conceived in 2017, bZx released its official whitepaper in February of 2018. Two months later, the bZx protocol was initially launched via the Ropsten Testnet. The release of bZx Portal and bZx.js occurred in the days immediately following. In contrast to many of its contemporaries, bZx conducted its token sale several months after the release of its first implementation on Ethereum’s testnet. Though the project raised $8M in ETH from the sale of 7.3M BZRX tokens (22% of total supply), it fell significantly short of its $36.5M hard cap (which would have accounted 500M tokens, 50% of the total BZRX supply). Fulcrum and Torque, joining bZx Portal as the project’s native instantiations of the bZx protocol, were launched in June and October of 2019, respectively.

Protocol Exploitations

In February of 2020, bZx lost $945,000 of assets held in its collateral pool as the result of two consecutive protocol manipulation events. In the first instance, an attacker was able to exploit a “logic bug” in the protocol’s lending mechanism, completing a complex series of transactions across multiple prominent DeFi platforms, ultimately netting $300,000 in profit from bZx’s collateral pool. At a high level, the maneuver involved ETH, obtained via a flash loan from dYdX, being used to collateralize a wBTC loan on Compound and a ETH:wBTC short position on Fulcrum, thus obtaining a large number of wBTC from both transactions; additional ETH was then borrowed and swapped for wBTC via the Kyber protocol, effectively driving up the wBTC price on Uniswap. Finally, the attacker uses Uniswap to sell the wBTC for on Kyber and Compound, allowing them to pay back the initial flash loan and exit with a profit of 1,200 ETH. Notably, the attack did not involve any direct security breaches of coding, but rather ‘legitimately’ profited from arbitrage, exploiting mass slippage resulting from bZx’s—and, in general, DeFi’s—illiquidity.

One day later, a second attack took advantage of flaws in bZx’s oracle mechanisms to profit $645,000 from the platform’s ETH pool. As with the previous attack, this exploitation targeted a procedural inefficiency rather than a coding vulnerability. That is, the attacker obtained ETH through a bZx flash loan, used a portion of the ETH to purchase sUSD from Synthetix, and then used the sUSD to collateralize a second bZx ETH loan. They then used another portion of the flash loaned ETH to articifially inflate the price of the dollar-pegged stablecoin to $2, effectively deceiving bZx’s oracle into offering a disproportionate exchange rate and allowing them to convert all sUSD positions back to ETH a net gain of 2,378 ETH, derived from bZx’s ETH pool. In response to this attack, bZx announced it would incorporate Chainlink’s oracle middleware into its protocol according to an accelerated timeline.

Asset Details

While myriad cryptoassets exist within the bZx ecosystem, three types of digital assets perform key functions of the bZx protocol’s core token economy:

  • iTokens are a class of assets representing a pro rata claim on the funds held in the lending pool, including accrued interest. Lenders receive freely-tradable iTokens upon finalization of a loan agreement may redeem them for due funds at any time via burning in a bZx smart contract or through selling them on the open market. iTokens are individual, fungible ERC-20 compliant assets named according to the asset underlying their associated loan; examples of iTokens include iLINK, iBAT, iREP and iETH.

  • pTokens function similarly to iTokens but are used exclusively when a trader wishes to enter a short position. Like an iToken contract, when called, a pToken contract distributes pTokens to the lender and appropriate assets from the lending pool to the borrower. However, pToken contracts take the additional step of calling the KyberSwap contract to initiate an exchange of the borrowed asset (thus shorting it). pTokens are also fungible, freely-tradable ERC-20 assets. Both iTokens and pTokens have an unfixed supply and come into existence only through participation in lending.

  • BZRX is the project’s native governance token that serves as the primary medium of exchange within the bZx ecosystem. In addition to being freely-tradable across external exchanges, these ERC-20 assets may always be redeemed for an equivalent amount of diversified assets held in the lending pool. As relay fees are paid in BZRX, such an ability to exchange BZRX seeks to avoid issues faced by the 0x protocol: namely, ZRX struggled to retain value as relays either exchanged their ZRX fees immediately or performed duties for no fees at all. Most importantly, however, BZRX ownership confers a pro rata claim to assets held in the protocol’s insurance fund.

Recent News

Ethfinex, the DEX arm of Bitfinex, rebrands and spins out as an independent company, DeversiFi.

The exchange will have seperate management, focus on institutional traders rather than retail, offer decentralized margin and lending through the bZx protocol, and no longer oversee IEOs through Tokenix.

August 13, 2019

Sources:

more

bZx loses $620,000 of equity in hack.

Over the weekend, an attacker managed to exploit a "logic bug" in the non-custodial margin lending protocol's coding, generating $350,000 in profit for the hacker and causing a loss nearly double that for the protocol. The attack involved a complex DeFi transaction routed through Compound, dYdX, Kyber, Uniswap and bZx's Fulcrum. Third-party bots were then able to claim a large portion of the profit from an imbalance in Uniswap, unrealized by the hacker.

February 17, 2020

Sources:

more

DeFi lending protocol, bZx has unveiled changes to address vulnerabilities exposed by its recent network attacks.

Following a set of attacks on the Ethereum-based lending protocol, bZx, its team has issued a review of the incidents while also publishing alterations it is making to rectify the vulnerabilities. The project has made changes to its use of oracles, the review process for code updates and its overall development framework. bZx was subject to an initial exploit on 14th February, with a user extracting $350,000 due to a bug while a subsequent attack on 17th February led to $645,000 in losses. 1inch.exchange, a decentralized exchange aggregator, also stated that they disclosed a $2.5 million vulnerability in the protocol, but that bZx chose not to inform its userbase or pay the corresponding bounty reward. The protocol’s new oracle design will initially rely on services from Chainlink, however, Band Protocol and Uniswap v2.0 will provide reference prices at a later date. Beyond this, the team plans to implement an EIP-style development process and subject the protocol to security and economic audits as well as submitting the code for formal verification.

March 10, 2020

Sources:

more
Show projects Article List
Sort icon: direction descending
Profile Updated
56d
Project details updated.
No icon fallback
ALTG
Profile Updated
56d
Project details updated.
Project Added as Signal
69d
Project details updated.
Profile Updated
69d
Project details updated.
Profile Updated
70d
Project details updated.
project icon for beam
BEAM
Profile Updated
70d
Project details updated.
Profile Updated
75d
Project details updated.
Profile Updated
75d
Project details updated.
project icon for qtum
QTUM
Profile Updated
80d
Project details updated.
Profile Updated
80d
Project details updated.
Profile Updated
81d
Project details updated.
project icon for aion
AION
Profile Updated
81d
Project details updated.
Profile Updated
82d
Project details updated.
project icon for grin
GRIN
Profile Updated
82d
Project details updated.
Profile Updated
83d
Project details updated.
Profile Updated
83d
Project details updated.
Profile Updated
87d
Project details updated.
project icon for kadena
KADENA
Profile Updated
87d
Project details updated.
project icon for chia
CHIA
Profile Updated
89d
Project details updated.
project icon for waves
WAVES
Profile Updated
89d
Project details updated
Profile Updated
91d
Project details updated.
Profile Updated
91d
Project details updated.
Profile Updated
94d
Project details updated.
No icon fallback
KLAY
Profile Updated
94d
Project details updated.
Profile Updated
95d
Project details updated.
project icon for neo
NEO
Profile Updated
95d
Project details updated.
Profile Updated
96d
Project details updated.
Profile Updated
96d
Project details updated.
project icon for aelf
ELF
Profile Updated
97d
Project details updated.
project icon for eos
EOS
Profile Updated
97d
Project details updated.
Profile Updated
98d
Project details updated.
Profile Updated
98d
Project details updated.
project icon for storj
STORJ
Profile Updated
102d
Project details updated.
Profile Updated
103d
Project details updated.
Profile Updated
103d
Project details updated.
project icon for zrx
ZRX
Profile Updated
104d
Project details updated.
project icon for tether
USDT
Profile Updated
104d
Project details updated.
project icon for wax
WAXP
Profile Updated
105d
Project details updated.
Profile Updated
105d
Project details updated.
Profile Updated
108d
Project details updated.
Profile Updated
108d
Project details updated.
Profile Updated
109d
Project details updated.
project icon for tzero
TZEROP
Profile Updated
109d
Project details updated.
Profile Updated
110d
Project details updated.
Profile Updated
110d
Protocol and asset details updated.
project icon for skale
SKALE
Project Added as Signal
110d
SKALE is an Ethereum Layer 2 scalability protocol facilitating the formation and operation of on-demand elastic sidechains.
Project Added as Signal
129d
TrueBit is a distributed marketplace for off-chain computation of resource-intensive smart contracts, verifying proper results using a game theory-based incentive structure rather than cryptographic proofs.
Project Added as Signal
140d
Spacemesh is a cryptocurrency and smart contract platform operating on directed acyclic graph infrastructure and utilizing a Proof-of-Spacetime consensus algorithm that intends to achieve a more equitable distribution of mining rights by decoupling the conferment thereof with access to financial means.
No icon fallback
BZRX
Project Added as Signal
143d
bZx is an Ethereum-based, decentralized cryptoasset lending protocol that facilitates margin trading of ETH and ERC-20 tokens.
Project Added as Signal
146d
Oasis Network is a permissionless, blockchain-based cloud computing platform that aims to improve upon the scalability and privacy of its peers through novel architecture.
Project Added as Signal
157d
FTX is a cryptoasset derivatives exchange, powered by a proprietary liquidation engine and clawback prevention protocol, offering futures, leveraged tokens and an over-the-counter trading portal.
Project Added as Signal
161d
ThunderCore is a permissionless, Turing-complete smart contract platform offering full EVM-compatibility and PaLa, a new variant of Proof-of-Stake consensus, as its distinguishing features.
Project Added as Signal
164d
Santiment is a blockchain data and analytics provider offering content streams, data feeds and analysis, APIs and its own ERC-20 token, SAN.
Project Added as Signal
178d
Nexus Mutual is a blockchain-based, protocol-enabled mutual insurance fund operating on Ethereum and owned entirely by its members, who buy into the fund by purchasing NXM tokens.
Project Added as Signal
206d
Gods Unchained is a decentralized trading card game that uses the ERC-721 non-fungible token standard to establish on-chain ownership of cards to be used in off-chain gameplay.
Project Added as Signal
216d
Synthetix is a decentralized synthetic asset issuance protocol consisting of an Ethereum-based smart contract, an exchange, and a dApp to facilitate smart contract interaction.
project icon for zrx
ZRX
Profile Updated
222d
Update on 0x v3, including protocol fees, staking incentives, and liquidity pooling with Uniswap, Kyber, and Oasis.
No icon fallback
LUNA
Project Added as Signal
230d
Terra is an algorithmically-governed, seigniorage share style stablecoin blockchain platform to which a collection of fiat-pegged tokens and a stabilizing cryptoasset, Luna, are native.
Profile Updated
247d
Stellar Development Foundation burns 55 billion XLM from its reserves, over half of the total supply, and removes the ongoing inflation to current token holders. The SDF had previously earmarked these tokens for community airdrops and ongoing organization funding.
Project Added as Signal
262d
Nervos is a public, PoW-based smart contract platform that utilizes off-chain computation in service of transaction scalability and implements a unique token emissions mechanic that imposes a perpetual cost for on-chain data storage.
Profile Updated
273d
Supply Information added.
project icon for beam
BEAM
Profile Updated
276d
Supply Information added.
project icon for grin
GRIN
Profile Updated
276d
Supply Information added.
Profile Updated
279d
Supply Information added.
Profile Updated
279d
Supply Information added.
project icon for siacoin
SC
Profile Updated
279d
Mining Information added.
project icon for dash
DASH
Profile Updated
280d
Mining and Supply Information added.
Profile Updated
280d
Mining and Supply Information added.
Profile Updated
283d
Mining and Supply information added.
Profile Updated
284d
Mining and Supply Information added.
project icon for kin
KIN
Project Removed as Signal
291d
Kin removed as Signal.
project icon for simple
OST
Project Added as Signal
291d
OST added as Signal.
Profile Updated
305d
Signal profile updated.
Project Added as Signal
319d
Edgeware added as Signal.
Profile Updated
321d
Ethereum Classic profile added.
project icon for steem
STEEM
Profile Updated
333d
Signal profile updated.
Profile Updated
333d
Signal profile updated.
project icon for neo
NEO
Profile Updated
333d
Signal profile updated.
No icon fallback
KLAY
Project Added as Signal
333d
Klaytn added as Signal.
No icon fallback
ALTG
Project Added as Signal
339d
Althea added as Signal.
Profile Updated
346d
Signal profile updated.
No icon fallback
UMA
Project Added as Signal
353d
UMA added as Signal.
No icon fallback
LIBRA
Project Added as Signal
354d
Libra added as Signal.
Project Added as Signal
359d
Chainlink added as Signal.
Profile Updated
365d
Signal profile updated.
Profile Updated
372d
Signal profile updated.
project icon for chia
CHIA
Profile Updated
377d
Signal profile updated.
project icon for bitfinex-leo
LEOTOKEN
Project Added as Signal
383d
Bitfinex LEO added as Signal.
project icon for coda
CODA
Profile Updated
389d
Signal profile updated.
Project Added as Signal
395d
Paxos added as Signal.
project icon for celo
CELO
Project Added as Signal
401d
Celo added as Signal.

You've reached the end of the list

No icon fallback

bZx

BZRX
n/a

bZx is an Ethereum-based, decentralized cryptoasset lending protocol that facilitates margin trading of ETH and ERC-20 tokens.

Overview

STATUS

MARKET CAP

BLOCKCHAIN

TOKEN TYPE

Live status icon
Live
Ethereum token icon

Ethereum

N/A

FUNDING SOURCE

AMOUNT RAISED

SECTOR

Exchange

Project Profile

bZx is a decentralized cryptoasset lending protocol primarily intended to facilitate margin trading of ETH and ERC-20 tokens. Operating on Ethereum, the core bZx ecosystem consists of a series of solidity-based smart contracts and three native ERC-20 assets: iTokens, pTokens and BZRX. Notably not itself an exchange, the bZx protocol is currently instantiated by integrations into various third-party decentralized exchanges, as well as the project’s three native DeFi products: bZx Portal, Fulcrum, and Torque. Further, bZx has fostered an extended decentralized financial ecosystem, consisting of wallets, exchanges and cryptoasset management tools with which its protocol interacts and/or powers. The team behind bZx is led by CEO Tom Bean, a former Nokia engineer, and CVO Kyle Kistner, a former molecular biological researcher at Georgia State University.

Base Protocol Details

The bZx protocol is a cryptoeceonmic primitive enabling the trustless margin lending of cryptoassets in decentralized environments. Such lending for the purposes of margin trading offers potentially lucrative returns for both lenders, who earn interest on cryptoassets loaned, and traders, who earned returns on short and leveraged positions. However, hitherto available only on centralized exchanges, potential profits from margin lending for both parties were lost, as many traders were unwilling to accept the counterparty risk associated with custodial exchanges, and lenders had no means of servicing traders via decentralized exchanges. bZx, rooted in the 0x protocol for decentralized trading of Ethereum-based assets, seeks to facilitate margin trading through non-custodial DEXs as well as its own platforms, negating certain counterparty risk; with loaned assets secured by smart contracts rather than centralized ledgers, decentralized margin lending carries with it lower costs, as it negates high risk premiums resulting from third-party possession of one’s private keys.

While exact procedures vary by implementation, the core bZx protocol is comprised of a series of Ethereum-based smart contracts, with the bZx.sol contract acting as coordinator of and ultimate authority over all sub-contracts. At a high level, the lending process is catalyzed by either lenders or borrowers sending a request for matching to bZx.sol via a third-party application acting as a relay (i.e. a DEX interface, into which the bZx protocol has been integrated). Once counterparties are matched and loan parameters finalized, bZx smart contracts trustlessly facilitate the transfer of the specified asset from the lender to the borrower, and the transfer of the borrower’s collateral to bZx’s centralized pool; in exchange, the lender receives iTokens or pTokens—depending on the type of loan—which represent a commensurate claim to assets held in pool as well as accrued interest.

Individual loans are overseen by custom oracle contracts, which are submitted to and selected from an open, fee-based marketplace by oracle providers and loan counterparties, respectively. The open-source oracle smart contracts are solely responsible for monitoring the loan’s maintenance margin and, when deemed necessary according to external price feeds, initiating liquidation of its collateral. Alternatively, counterparties may choose to employ the protocol’s native bZxOracle contract, which performs the same liquidation functions as custom oracle contracts but instead relies on public ‘bounty hunters’ to indicate inadequate collateralization levels, triggering liquidation, in exchange for a percentage of oracle fees.

To close out a loan position, the lender simply sends their iTokens or pTokens back to the bZx contract, where they will be burned; doing so initiates an atomic swap, instantly returning to the lender their principal and accrued interest from bZx’s capital pool. Loans may be closed by the lender at any time without impacting the borrowers, so long as the network’s total loan utilization does not surpass 100% (in which case, a queue is formed and lenders are gradually reimbursed on an ongoing basis). Conversely, one may ‘exit’ a position by simply selling one’s iTokens or pTokens on the open market.

Product Details

In addition to integrations into third-party exchanges, the bZx protocol underlies bZx’s three native DeFi products:

  • bZx Portal is the first live implementation of the bZx protocol, serving as a native alternative to DEXs for accessing bZx’s decentralized margin trading services. The portal broadly facilitates the full spectrum bZx’s functions, and is divided into four sections: an order book for matching borrowers and lenders; a section for borrowers to manage borrowed funds and associated trades and a corresponding, reciprocal section for lenders to do so; and a section for bounty hunters to monitor trades and request liquidation.

  • Fulcrum is bZx’s primary platform intended specifically for non-custodial, tokenized lending and margin trading, facilitating both activities directly on the dApp itself. The platform supports the minting and burning of iTokens and pTokens for the leveraging, shorting and lending of ERC-20 assets, while requiring no KYC measures. The open-source platform also maintains its own iToken and pToken lending pool, as well as an insurance fund to mitigate the risk of socialized clawbacks.

  • Torque employs the bZx protocol to offer indefinite-term, fixed-interest rate loans. Loans made on Torque funded directly by Fulcrum’s iToken lending pool and request are made through a base protocol order with a duration parameter of zero. As such, Torque loans are overcollateralized by ETH or any ERC-20 asset, including perpetual maintenance of three month’s interest, held in Fulcrum’s iToken contract; thus, those holding iTokens from loans made on Fulcrum also earn a claim to interest and collateralizing assets from Torque transactions.

Additionally, bZx.js is a publicly available asynchronous JavaScript library offering tools for development on and incorporation into third-party applications of the bZx protocol. That is, the library contains functions necessary for exchanges and relays to interact with bZx smart contracts on Ethereum, establishing funding tabs on exchanges in a manner analogous to 0x.js’s establishment of frontends on exchanges.

The differences, from an end user’s perspective, between bZx and other margin trading protocols vary by the former’s given instantiation—i.e. Fulcrum operates with a higher degree of centralization than does bZx Portal. In general, however, the core bZx differentiates itself from other margin lending protocols, such as Compound and MakerDAO, through its decentralized sourcing of price feeds and interest rates for DEXs and their order books; in contrast, Compound and other peers do not employ DEX order books, nor do they utilize data therefrom, instead maintaining whitelisted price feeds and centrally-controlled interest rates.

Project Status

Conceived in 2017, bZx released its official whitepaper in February of 2018. Two months later, the bZx protocol was initially launched via the Ropsten Testnet. The release of bZx Portal and bZx.js occurred in the days immediately following. In contrast to many of its contemporaries, bZx conducted its token sale several months after the release of its first implementation on Ethereum’s testnet. Though the project raised $8M in ETH from the sale of 7.3M BZRX tokens (22% of total supply), it fell significantly short of its $36.5M hard cap (which would have accounted 500M tokens, 50% of the total BZRX supply). Fulcrum and Torque, joining bZx Portal as the project’s native instantiations of the bZx protocol, were launched in June and October of 2019, respectively.

Protocol Exploitations

In February of 2020, bZx lost $945,000 of assets held in its collateral pool as the result of two consecutive protocol manipulation events. In the first instance, an attacker was able to exploit a “logic bug” in the protocol’s lending mechanism, completing a complex series of transactions across multiple prominent DeFi platforms, ultimately netting $300,000 in profit from bZx’s collateral pool. At a high level, the maneuver involved ETH, obtained via a flash loan from dYdX, being used to collateralize a wBTC loan on Compound and a ETH:wBTC short position on Fulcrum, thus obtaining a large number of wBTC from both transactions; additional ETH was then borrowed and swapped for wBTC via the Kyber protocol, effectively driving up the wBTC price on Uniswap. Finally, the attacker uses Uniswap to sell the wBTC for on Kyber and Compound, allowing them to pay back the initial flash loan and exit with a profit of 1,200 ETH. Notably, the attack did not involve any direct security breaches of coding, but rather ‘legitimately’ profited from arbitrage, exploiting mass slippage resulting from bZx’s—and, in general, DeFi’s—illiquidity.

One day later, a second attack took advantage of flaws in bZx’s oracle mechanisms to profit $645,000 from the platform’s ETH pool. As with the previous attack, this exploitation targeted a procedural inefficiency rather than a coding vulnerability. That is, the attacker obtained ETH through a bZx flash loan, used a portion of the ETH to purchase sUSD from Synthetix, and then used the sUSD to collateralize a second bZx ETH loan. They then used another portion of the flash loaned ETH to articifially inflate the price of the dollar-pegged stablecoin to $2, effectively deceiving bZx’s oracle into offering a disproportionate exchange rate and allowing them to convert all sUSD positions back to ETH a net gain of 2,378 ETH, derived from bZx’s ETH pool. In response to this attack, bZx announced it would incorporate Chainlink’s oracle middleware into its protocol according to an accelerated timeline.

Asset Details

While myriad cryptoassets exist within the bZx ecosystem, three types of digital assets perform key functions of the bZx protocol’s core token economy:

  • iTokens are a class of assets representing a pro rata claim on the funds held in the lending pool, including accrued interest. Lenders receive freely-tradable iTokens upon finalization of a loan agreement may redeem them for due funds at any time via burning in a bZx smart contract or through selling them on the open market. iTokens are individual, fungible ERC-20 compliant assets named according to the asset underlying their associated loan; examples of iTokens include iLINK, iBAT, iREP and iETH.

  • pTokens function similarly to iTokens but are used exclusively when a trader wishes to enter a short position. Like an iToken contract, when called, a pToken contract distributes pTokens to the lender and appropriate assets from the lending pool to the borrower. However, pToken contracts take the additional step of calling the KyberSwap contract to initiate an exchange of the borrowed asset (thus shorting it). pTokens are also fungible, freely-tradable ERC-20 assets. Both iTokens and pTokens have an unfixed supply and come into existence only through participation in lending.

  • BZRX is the project’s native governance token that serves as the primary medium of exchange within the bZx ecosystem. In addition to being freely-tradable across external exchanges, these ERC-20 assets may always be redeemed for an equivalent amount of diversified assets held in the lending pool. As relay fees are paid in BZRX, such an ability to exchange BZRX seeks to avoid issues faced by the 0x protocol: namely, ZRX struggled to retain value as relays either exchanged their ZRX fees immediately or performed duties for no fees at all. Most importantly, however, BZRX ownership confers a pro rata claim to assets held in the protocol’s insurance fund.

Recent News

Ethfinex, the DEX arm of Bitfinex, rebrands and spins out as an independent company, DeversiFi.

The exchange will have seperate management, focus on institutional traders rather than retail, offer decentralized margin and lending through the bZx protocol, and no longer oversee IEOs through Tokenix.

August 13, 2019

Sources:

more

bZx loses $620,000 of equity in hack.

Over the weekend, an attacker managed to exploit a "logic bug" in the non-custodial margin lending protocol's coding, generating $350,000 in profit for the hacker and causing a loss nearly double that for the protocol. The attack involved a complex DeFi transaction routed through Compound, dYdX, Kyber, Uniswap and bZx's Fulcrum. Third-party bots were then able to claim a large portion of the profit from an imbalance in Uniswap, unrealized by the hacker.

February 17, 2020

Sources:

more

DeFi lending protocol, bZx has unveiled changes to address vulnerabilities exposed by its recent network attacks.

Following a set of attacks on the Ethereum-based lending protocol, bZx, its team has issued a review of the incidents while also publishing alterations it is making to rectify the vulnerabilities. The project has made changes to its use of oracles, the review process for code updates and its overall development framework. bZx was subject to an initial exploit on 14th February, with a user extracting $350,000 due to a bug while a subsequent attack on 17th February led to $645,000 in losses. 1inch.exchange, a decentralized exchange aggregator, also stated that they disclosed a $2.5 million vulnerability in the protocol, but that bZx chose not to inform its userbase or pay the corresponding bounty reward. The protocol’s new oracle design will initially rely on services from Chainlink, however, Band Protocol and Uniswap v2.0 will provide reference prices at a later date. Beyond this, the team plans to implement an EIP-style development process and subject the protocol to security and economic audits as well as submitting the code for formal verification.

March 10, 2020

Sources:

more