Are you ready to DeFi?

bZx proudly supports the annual ETHDenver hackathon and we’re excited to announce our bounties for this year’s event.

If you’re looking to #buidl dApps empowering lenders, borrowers, and traders with truly decentralized financial technologies, we’ve got the tools - and bounties - you need!

Read on to learn more about the primitives provided by bZx Network and the bounties we’re offering for ETHDenver 2020.

iTokens

iTokens, such as iDAI or iUSDC, are interest-accumulating tokens that continuously gain value as you hold them. They represent a share in a lending pool that grows in size as borrowers pay interest to them.

iTokens can be traded, used as collateral, composed by developers into structured products, or sent to cold storage for safety.

Examples of products that can be built using iTokens include:

Risk-free, Interest-Bearing DAI/USDC

iTokens are uniquely suited for risk management products. If there is a loss to the underlying pool, it is reflected in the iToken exchange rate. This is only true of iTokens and no other similar products on the market.

A risk management product that profits from a decrease in the iToken price can hedge both against liquidity risk and depegging risk at the same time, allowing lenders to obtain a completely risk-free yield.

No-Loss X

Any system that funds some public or private good using redirected interest can be built using iTokens. Examples of projects that could be powered by iTokens include rTrees and PoolTogether.

pTokens

pTokens are ERC20 tokens that give traders exposure to short or leveraged positions. For example, a trader can purchase a 2x Long ETH pToken, and the token will go up two dollars for every one dollar that ETH goes up.

There are pTokens for many assets such as ETH, LINK, REP, wBTC, ZRX, and others, allowing up to 4x long or short exposure.

Examples of products that can be built with pTokens:

Structured Products, Leveraged ETFs, and Inverse ETFs

Using tools like DeFiZap, developers can allow users to create a variety of asset baskets in a single click. For example, an “ETH Bull” basket might include a leveraged long ETH pToken and a leveraged short wBTC pToken.

Another example of such a product would be a leveraged long DeFi basket that includes the major DeFi ERC20s (MKR, REP, etc). An especially promising example would be to create a product that instantly hedges global Synthetix debt for SNX holder and periodically rebalances using Set Protocol.

Borrowing

Overcollateralized Borrowing

As is demonstrated at torque.loans, the Fulcrum liquidity pool can be used to take out loans against a variety of ERC20 assets.

Borrowing can be chained together with other actions using tools like DeFiZap to allow for highly demanded functionality with the press of a single button.

ENS Loans

Users can easily open loans by simply sending their ETH to either dai.tokenloan.eth or usdc.tokenloan.eth from any wallet. Check out the video below to see a 40 second demonstration:

This can be leveraged creatively to provide novel user experiences and workflows.

The Prizes

Build The Best Product (up to $6,000)

We are offering a $5,000 bounty to the team that builds the most creative, powerful product on top of the protocol. If your project is a finalist in the Hackathon, we will add an additional $1,000.

What we’re looking for:

Getting Started

You can learn more about the protocol at bzx.network, play with our products at fulcrum.trade & torque.loans, or read the documentation at docs.bzx.network. Our developer guides have everything you need to get started building on bZx.

If you have any questions, join our technical community or Telegram. You can find our contracts fully open-sourced on Github.

About the author
Kyle J Kistner
CVO @ bZx. Product, Protocol Design, & Token Economics.