Decentralized finance flash loan platform bZx has made good progress since it migrated to Binance Smart Chain according to a recent tweet as it plans for more governance tokens.
On April 6, bZx announced that it was launching yield farming on Binance Smart Chain to reward its new BGOV tokens to liquidity providers.
In a tweet on April 19, the flash loan protocol posted an update on progress from farming its new governance tokens on BSC.
“A week after launching on BSC, bZx reached a $1b TVL. Shortly thereafter, a massive $70m loan was issued resulting in a record-breaking $200k in fees accruing to BGOV pool stakers in less than 24hrs.”
bZx Token: Take two
The DeFi exchange already has its own native token, BZRX, which has recovered well in 2021 following a massive slump in September 2020. It serves as the primary ERC-20 compliant native token of the bZx ecosystem, and maintains the most prominent role, wields the most voting power, and greatest fee-generating weight.
However, the protocol now has a BEP-20 standard token called BGOV which also acts as a governance and fee-generating token. It is a fork of the Sushi token contract which has an inflationary issuance model. The tokenomics blog post elaborated:
“This will make bZx the first lending AMM with Sushi-like token economics. BGOV allows bZx to experiment with interactive multi token models.”
Both tokens will be used for liquidity provision, one for the Ethereum ecosystem and the other for BSC. This multi-token system may be a model that other DeFi protocols pursue as they migrate or port to other blockchains. However, it may also dilute the ecosystem which is already overcrowded with DeFi related governance tokens.
bZx also plans to launch a margin trading, borrowing, and lending product on Ethereum Layer 2. It claims to be the first DeFi protocol to do so. There will be a number of additional ‘GOV’ tokens for other platforms such as Polkadot, Avalanche, Polygon, and Fantom enabling BZRX holders to earn across multiple chains.
BZRX token price update
The protocol’s first native token has gained 8% over the past 24 hours according to CoinGecko. BZRX was trading at $0.78 at the time of writing and had gained 30% over the past 30 days.
Its all-time high came at the end of August 2020 when it hit $1.40. It’s been slowly grinding higher following a slump to below $0.10 in September. According to DeFiLlama, the protocol has a current TVL of $948 million.