bZx Protocol - A Bitmex Competitor? | Tom Heavey Interview

bZx is a protocol specifically designed for Decentralised Finance - also known as DeFi. As one of the new entrants to the market, bZx are attempting to gain adoption by providing a better user experience, combined with lower slippage rates.

The first project built on top of the protocol has already been launched - Fulcrum.trade.

Fulcrum is a decentralised margin lending and trading platform. In simplistic terms, think of it as a decentralised Bitmex competitor. However, that really is an oversimplification. A better description would be as follows:

What Is A Bitcoin Leveraged Trade?

Bitcoin is at $11,500. You're confident it will increase. So confident, that you want to place a 4x leveraged trade. With this type of trade, you would gain 4x the regular profits if you're right i.e. if Bitcoin increases by $1,000, you'd profit by $4,000.

(Note: If you're wrong with your trade, you could lose a lot of money. Leveraged trading is extremely risky.)

But, how can you possibly profit $4,000 when Bitcoin has only increased $1,000? Where does the other $3,000 come from?

In order to place a leveraged trade, you must borrow money. This is where bZx and Fulcrum come into it - the systems connects lenders and borrowers.

Lenders are individuals who want to hold a Cryptocurrency and earn interest from lending it out. Borrowers are those wishing to place leveraged trades.

Within the interview, we discuss this in greater detail, along with an analysis of how their second product; Torque will exist within this ecosystem also.
●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬●