bZx is pleased to announce that Torque, and Fulcrum - decentralized margin trading, borrowing and lending products are now available on Binance Smart Chain.
bZx is bringing DeFi to Binance Smart Chain (BSC) starting with bZx’s margin trading, borrowing, and lending products Torque and Fulcrum. Binance Smart Chain users will now be able to use all the features that are available on Torque and Fulcrum on the Ethereum network including: non-custodial trading and borrowing with fixed rates. In the near future we will release all of the details of the BGOV liquidity mining program.
💰What is Binance Smart Chain?
bZx will remain primarily an Ethereum focused protocol. However it is expanding its product offering to products and services on Binance Smart Chain. Users on Binance Smart Chain will now have access to bZx products, while also benefiting from BSC’s low fees and fast transactions.
Binance chain is a centralized blockchain, built on a similar foundation to the ethereum blockchain. However compared to ethereum, BSC modified critical parameters which favor transaction speed and decreased costs at the expense of decentralization. BSC uses a consensus mechanism called Proof of Staked Authority (PoSA), which is governed by merely 21 validators, making it relatively centralized compared to Ethereum, with thousands of nodes. By reducing the number of nodes, BSC is able to process a greater number of transactions every second, and reduce transaction fees and gas costs compared to the ethereum network.
🥞Trade With Leverage On PancakeSwap
PancakeSwap is a decentralized automated market maker (AMM) exchange running on Binance Smart Chain that allows two tokens to be exchanged on the Binance Smart Chain. PancakeSwap gives users a simple way to trade one BEP-20 token for another via automated liquidity pools. The liquidity provided to the exchange comes from Liquidity Providers (“LPs”) who stake their tokens in “Pools”. In exchange, they get FLIP (PancakeSwap Liquidity Provider) tokens, which can also be staked to earn CAKE tokens in the “farm”.
bZx is pleased to announce that it is the first and only platform enabling margin trading to occur over PancakeSwap using intelligent routing, so users are always given the best possible rate.
🚜 Yield Farming on Binance Smart Chain (coming soon)
bZx is launching its first yield farming program on Binance Smart Chain. We will be introducing brand new yield farming pools on Binance Smart Chain which will reward BGOV tokens to liquidity providers. When staked, BGOV entitles stakers to a portion of trading fees generated on BSC. Yield farming won’t be available at launch but will be added soon. Through a governance voting proposal, liquidity mining rewards may be added retroactively to users who provide liquidity.
📢 Announcing the BGOV Token
Alongside the launch of Binance Smart Chain (BSC) integration and yield farming, bZx will also be launching a new BEP20 token called BGOV. BGOV tokens are the binance chain equivalent to BZRX. BGOV is a fork of the Sushi token contract, and has an inflationary issuance model. This will make bZx the first lending AMM with Sushi-like token economics. This will enable our community members to explore new ways to incentivize liquidity, create farms and receive rewards.
When deciding to launch a new BGOV token to coincide with BSC integration, we considered numerous potential approaches. We could have used wBZRX with the same model we currently have, and funnel fees from BSC to Ethereum so that current BZRX holders increase their yields.
Ultimately we decided that launching a new token for BSC would be the optimal approach. One important factor which led us to introduce BGOV on BSC, was that it will generate additional liquidity for the BZRX token. The new BGOV token will add liquidity to the bZx ecosystem because it is being distributed to people who hold and stake their BZRX tokens thereby attracting more capital and increasing the yield to BZRX holders.
By launching BGOV, we are providing new ways for users to generate yield with their BZRX. BZRX holders now have the option to use the Binance Smart bridge, wrap their BZRX and vBZRX tokens, and move them over to BSC where they can stake them to earn BGOV tokens. A few benefits to launching BGOV are as follows:
- Non-Dilutive Incentives: With the launch of new farming pools, BGOV provides an opportunity to incentivize liquidity and increase TVL. A sustainable way to create liquidity. For example, if we were to offer an incentivized pool for wrapped iTokens from Ethereum, this could provide a mechanism to incentivize deposits into targeted lending pools on the Ethereum deployment of Fulcrum.
- Local Governance: Holders of BGOV will be more aligned with and attentive to the health of Binance chain lending pools when it comes to governance decisions and proposals. BSC governance impacts the BSC community. As the value of the Ethereum deployment grows relative to that on BSC, this could result in BSC stakeholders having their voices diluted, and vice versa.
- Tokenomics Sandbox: By launching a new BGOV token on BSC, it allows us to experiment with interactive multi token models. Additionally, because the BGOV token model is not capped, it gives us more latitude to experiment with liquidity incentives via farming. Furthermore, this allows us to create ongoing liquidity for vBZRX and BZRX, which will in turn drive value to BZRX token holders. All together, this opens the door to experiment with ways to increase TVL and drive rates down.
Unlike BZRX, BGOV will not have a fixed supply. Instead, farming rewards will be available in perpetuity. We will soon be announcing the weight of token rewards for various pools, as well as the schedule of tokens awarded per block. Specific pool rewards will vary and be announced in a future update.
As previously mentioned, liquidity providers who begin mining immediately before any rewards are announced may still qualify for retroactive rewards through a governance proposal to retroactively reward liquidity providers.
BGOV will be used to govern Binance Smart Chain protocol parameters for Binance specific assets on bZx. Users will be able to stake their BGOV tokens and earn a portion of protocol fees, and submit governance proposals for Binance Smart chain protocol specific assets.
How to obtain the new BGOV tokens?
There will be multiple ways to obtain BGOV tokens. Users will be able to obtain BGOV by using the protocol. BGOV will be distributed to people trading, borrowing, and lending in order to further incentivize use of protocol. Secondly, BGOV will be available through yield farming rewards used to incentivize certain AMM liquidity pools. Users will also be able to receive BGOV tokens by staking your wrapped BZRX, and vBZRX tokens.
In order to get started trading, borrowing, lending and farming on Binance Smart Chain. Visit https://bsc.torque.loans/. Then, connect your web3 enabled browser to Binance Smart Chain. Here is a quick guide explaining the process of connecting metamask to BSC.
About Binance Smart Chain
Binance Smart Chain aims to enhance the functionality and interoperability of Binance Chain. The BSC enables the creation of smart contracts and the staking facility for BNB. It relies on a system of 21 validators with Proof of Staked Authority (PoSA) consensus. With approximately a ~5 second block time, the BSC offers high-speed transactions and lower fees.
BSC supports EVM-compatible smart contracts and protocols. It supports cross-chain transfers and allows for the creation of “pegged coins” (tokens pegged to the BSC chain), including BTC, ETH, TRX, and more. Pegged coins operate as BEP-20 tokens on Binance Smart Chain, similar to Ethereum’s ERC-20 tokens.
To learn more, visit: https://www.binance.org/en/smartChain