bZx Latest News: Mainnet Launch, ZK Labs Security Audit and Relay Integrations

bZx Latest News – Mainnet Launch, ZK Labs Security Audit and Relay Integrations

bZk was able to deploy its protocol on the Ethereum mainnet after being audited by ZK Labs, a leading auditor in the blockchain world. ZK Labs is headed by experts in the matter such as Matthew DiFerrante, Dean Eigenmann, Nick Johnson, and Harry Roberts.

The information has been released by bZx on a blog post on September 7.

ZK Labs released a report about bZx’s smart contracts in which they evaluated the codebase and whether it adheres or not to the established best practices for smart contract development, code correctness, quality and security. Indeed, the report showed very positive things, explaining that the code was structured and properly compartmentalized.

However, there is only one issue remaining after the audit. They explain that it is possible for an upgrade to any component to affect the state or balances in the entire protocol. The company explains that this has been addressed by the new governance mechanism.

Another important topic is related to governance. bZx’s team explains that during the development of the protocol on the testnet they used a single signature wallet. With it, they were capable of exercising full control of the protocol.

Since the protocol was launched to the mainnet, it is governed by a time-locked variant of the Gnosis multi-signature wallet. Some critical contracts are subject to 28 day timelock and others to a 14 day timelock.

The audit raised some questions about the possibility of grinding attacks that could be carried out. They could affect the guarantee fund with the help of colluding miners. Although these attacks do not happen in early stages, in the future, with a growing guarantee fund, the chances to receive such an attack increase.

One of the variants of grinding attacks is the Miner Collusion Attack and the other is known as Spot Market Manipulation Attack. Additionally, these two attacks could be combined in just one attack and create an even more harm.

Due to the fact that the network is endangered, the company explained that they re conducting a major protocol change.

There will be a modernization of the guarantee fund, there will be an alignment of the incentives of traders to discourage forced liquidations, and they will align the incentives of the bounty hunters to that they will not be motivated to create work for themselves.

Because of this, there are four changes that have been implemented:

  • Bounty hunters are no longer paid out of the guarantee fund
  • Fast refunds are no longer paid out of the guarantee fund
  • Bounty hunter transaction fees will be taken out of the collateral staked by traders
  • Trader collateral must be greater than 0.5 ETH

With these changes there will always be enough collateral to incentivize bounty hunters to liquidate. Moreover, there is no way to profitably drain the guarantee fund. Additionally, the protocol is now much more efficient after incentivizing borrowers to avoid having their position margin called.

Relay Integration

The protocol will be debuting on Bamboo Relay during the next Monday. The company is very grateful to the team of Bamboo that were working really hard in order to integrate the bZx protocol to their platform.

With this implementation is the first time that it is possible to use margin trading on a decentralized exchange. In addition to it, the company is working with liquidity providers to ensure that there is enough liquidity on the order books.

There will be offered liquidity for Ethereum and many other ERC20 tokens.

The company wrote on the matter:

“We are proud to be one of the first fully functional dApps in the ecosystem, and we than Bamboo for working closely with us.”

In the future, there are going to be more partnerships with other relays such as SharkRelay, Amadeus, Instex, Starbit, and OpenRelay.

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