bZx Joins the Defi Party with a $40 Million Market Cap – Trustnodes

bZx Joins the Defi Party with a $40 Million Market Cap


bZx Fulcrum trading screen, July 2020

bZx, an ethereum based lending and trading dapp, is the latest to join the tokenized incentives trend.

Some 20% of all nearly one billion BZRX tokens are now to be given to borrowers and traders with just 140 million tokens circulating.

As usual the tokens are then usable for voting on how the dapp should operate, including what fees it should charge.

bZx stats, July 2020
bZx stats, July 2020

This new distribution announced just last month is split into two suballocations, they say:

“17% – Each time a user pays a fee, 50% of the value of the fee is refunded to them in the form of BZRX. We will initially be funding this from the existing allocation of tokens.

Initially BZRX will be allocated at a rate of .0002 ETH per BZRX. When the token is unlocked, it will be allocated at market rate as determined by a Chainlink price feed once liquidity is sufficient.

3% – During the first three months, 0.25% of the BZRX token supply will be disbursed each week to users based on the quantity of fees generated during that week.

This is intended to bootstrap activity on the protocol by compensating early adopters for the risks they bear.”

bZx was an up and coming poster boy at the beginning of the year, but a half long half short flashloan trade, followed by more of the same, led to locked assets in bZx falling from $20 million in February to now less than a million.

There was a shortfall due to these flashloan trades so users found their assets actually being locked, rather than withdrawable at will.

It appears the dapp never quite recovered since, but bugs and hacks are to be expected at the early stages of any new dapp with the question being more whether the market has confidence in the competence of the bZx team.