We are excited to announce a planned integration of bZx, a margin lending protocol, in Augur v2.
bZx is a natural fit for Augur, since it is more decentralized than other lending solutions in the space. It is fully non-custodial, with funds escrowed in smart contracts, and it uses both decentralized price feeds and margin calls.
Margin lending is an important element on many financial exchanges letting traders get leverage (magnify positions) or go short (bet against an asset by borrowing and selling it), while letting lenders earn interest on their assets. The net effect is that it can help increase a market’s liquidity.
In the case of Augur, it can prevent liquidity from becoming fragmented across multiple markets by letting users magnify existing positions via margin rather than needing to trade in or create separate markets on the same outcomes to increase exposure. This can amplify the network effects of liquidity.
The bZx team has developed a margin widget that hooks in directly with decentralized exchanges like Augur. The bZx widget will be available in the UI for sufficiently liquid scalar markets on Augur and let traders lend and borrow Dai or outcome shares. Both lenders and borrowers can create orders with their chosen terms. For more info, see here.Start Trading on Augur