bZx, a decentralized margin lending protocol and liquidation oracle marketplace on the Ethereum blockchain, is soon to launch Fulcrum, a front-end web interface for interacting with bZx smart contracts. Fulcrum is built on the bZx base protocol and extends the protocol by allowing both loans and margin positions to be tokenized.
Fulcrum is offering a fully tokenized margin experience using iTokens and pTokens. The bZx base protocol allowed users to margin lend and trade in a fashion similar to that found on centralized exchanges. Fulcrum builds on the base protocol, tokenizing both loans, and margin positions. Loans and positions can be entered into in as few as three clicks. Alternatively, loans and positions can be entered by simply sending assets to an ENS domain.
Tokenizing margin loans and positions brings new possibilities to the decentralized finance space. In the legacy system, lenders were forced to hold loans until the loan terms expired. Now they can exit loans at any time they want by simply selling iTokens on the open market. Previously, assets in loans could not be used for any other purposes. iTokens allow rehypothecation, the ability for lenders to use iTokens as collateral to take out loans.
pTokens make the experience of taking out a margin loan seamless and simple. Users no longer need to take out a loan and then manually trade it for another asset. All the operations needed to allow the desired exposure is automated on the back-end. The secondary market for pTokens allows traders to enter into margin positions without increasing the existing interest rate for loaned funds, creating a more efficient lending market.
The Fulcrum product itself is almost ready to be released as soon as its security audits are completed. The bZx team has provided a detailed integration guide and also documentation for step-by-step instructions on how to issue loans and enter into margin positions.