Chainlink Oracle Services and bZx Margin Trading Protocol Collaborate for Strategic Goal
bZx is the first protocol to power margin lending and trading on the Ethereum network. It recently announced that it would be working with Chainlink. The partnership will entail introducing the functionality offered by Chainlink to the bZx protocol to create an Oracle solution.
Current Condition of bZx
bZx protocol has a base layer and an oracle layer. The current Oracle layer makes margin trading and lending possible with speedy settlements for over 60 tokens that run on the Kyber Network. Outside of this purpose, there are many other use cases for this protocol. For instance, ERC20 and ERC721 tokens would benefit from on-chain prices and liquidity that the bZx protocol provides.
With Chainlink, bZx will enable a new Oracle solution on its existing protocol. This will expand the integrations possible. To ensure that this goal becomes a reality, the bZx protocol will encourage those who participant in their hackathons to focus on creation on Oracle based on Chainlink for bZx.
Sentiments from the Leaders
According to the CEO of bZx, Chainlink will be important for any protocol that wants to rely on on-chain and off-chain data without compromising decentralization. He added that the company had pondered on various margin call mechanisms but they eventually chose Chainlink.
With their Oracle solutions, bZx will be able to achieve full decentralization of the margin calls. This will be done at high speeds even for the tokens not listed on on-chain decentralized exchanges. For bZx, this partnership with Chainlink is in line with their vision of future DEXs that run on the bZx protocol.
— Chainlink – Official Channel (@chainlink) November 6, 2018
bZx is a protocol that runs on Ethereum for the 0x-standard relays and the on-chain DEXs. This protocol will make it possible for DEXs powered by the Kyber Network and Ox to offer margin trading. bZx offers the largest array of tokens involved in margin trading. These tokens include ZRX, ETH, BAT, EOS, DAI, REQ, DGX, PAY, and many others.
This protocol is comprised of a base layer which does the primary functions of interest distribution and escrow and a second layer. This layer can be freely built upon for ensuring advanced features for the base layer; for instance, this solution enables speedy settlements and pooled lending.
bZx stands out due to various reasons. For example, it is able to avoid slow Dutch Actions, which can require hundreds of blocks to complete. To avoid this, it offers speedy margin trading on the second layer, where settlements can be done in just one block. This ensures shorting of even volatile ERC20 tokens.
Chainlink is an Oracle network that runs on the blockchain. It ensures that smart contracts can access off chain data, bank payments, and APIs in a secure manner. The company has been selected numerous times as a top company for blockchain technology. Major research firms such as Gartner always rank the company high. It is a known, reliable, and secure oracles to major companies and smart contract developers.