DeFi Dissected: Comparing UniLend and bZx, Two Decentralized Lending Innovators
TL;DR:
Our DeFi Dissected article series compares UniLend to other key DeFi players within the space, whilst educating our community on the overall DeFi space.
To begin this instalment, we take a look at the broader DeFi ecosystem as a whole and discuss its immense staying power.
Both UniLend and bZx offer decentralized lending/borrowing functionality.
Both protocols empower their users via community governance.
UniLend users also can permissionlessly add any asset, utilize spot trading services, and the ability to tokenize a range of assets; all abilities which bZx does not provide.
Unilend is truly unmatched in the DeFi space due to our comprehensive DeFi functionality, permissionless listing mechanism, and drive to continue adding unique value to the protocol over the long-term.
DeFi at a Glance
2020 has been the year of DeFi. At times the narrative of DeFi has even overshadowed Bitcoin during its own halvening year. It has become overwhelmingly clear just how important the emerging decentralized finance revolution is to the crypto ecosystem as a whole.
If you were to view DeFi Pulse, a reputable site which offers real time analytics and rankings of DeFi protocols, you’d see that DeFi has been on a meteoric rise most of the year. There’s been pull backs to be sure, but the beast that is DeFi is firmly here to stay.
Interestingly, this is just the beginning for decentralized finance. Investors can still “get-in-early”, even though DeFi is quickly taking off. Though 2020 has been a trial year for DeFi, witnessing some newly initiated protocols flop and others creating massive value for crypto users, many variations of DeFi protocols have been created at this point. Being a second-mover in the space provides UniLend Finance with a key opportunity to steal the show.
Enter UniLend Finance, the protocol that will enable users to fully unlock the true potential of decentralized finance.
UniLend is the result of monitoring the strengths and weaknesses of the DeFi industry since its inception. By developing a state-of-the-art protocol which incorporates all DeFi functionality for any asset, UniLend is solving the problem of segmentation of the DeFi space by offering an inclusive one-stop-shop for all needs of DeFi users.
Today we continue our DeFi Dissected article series by comparing our protocol, UniLend Finance, with the bZx DeFi ecosystem. We wish to enlighten our readers by explaining key comparison points of the protocols, in order to demonstrate UniLend’s game-changing approach to the DeFi experience.
We greatly appreciate all the work other projects have put into their protocols, and we thank them for being trailblazers for the space. bZx was one of the first DeFi protocols to add decentralized price feeds for calculating interest rates and continues to be an undisputed leader at the forefront of the decentralized revolution. We commend their contributions and wish to carry the torch to take DeFi to the next level.
Key Comparison Points Between UniLend & bZx
The bZx platform is a relatively small ecosystem, primarily consisting of two protocols, Fulcrum & Torque. These protocols enable shorting, leverage, borrowing, and lending to their user base in an efficient decentralized manner.
UniLend, on the other hand, offers these same abilities, but could not be considered a small ecosystem by any means, due to the fact that it will allow for several more DeFi capabilities. On top of UniLend’s expansive DeFi functionality, UniLend will enable its users to permissionlessly list any ERC20 asset for lending and borrowing; meaning UniLend can potentially support 6000+ more assets to choose from for lending/borrowing, as opposed to bZx’s total of 14 assets for the same.
Secondly, bZx already has a thriving governance token (BZRX) which allows their community to vote on upgrades to the bZx protocol, in addition to earning a share of the bZx protocol fees. Similarly, UniLend Finance’s governance token (UFT) will be ingrained into UniLend’s voting system.
Although bZx has been established since mid-2019, it doesn’t offer much else of significance when comparing it to UniLend Finance. Following the initial launch of UniLend by the end of 2020, we'll see our protocol offer other features, in addition to those mentioned above.
Those features include: spot trading of a vast range of permissionlessly listed assets, compared to bZx’s 12 assets for margin trading, and the tokenization of many assets in comparison to bZx (which offers only one tokenized asset, vBZRX, while lending/borrowing positions are open).
Furthermore, UniLend will strive for continuous advancement through the addition of innovative new features. As outlined in our roadmap, we are currently researching and planning to implement a range of additional functionalities, including Fusion Farming, Meta Transactions, and an array of loan options. This is only the beginning.
A Page Turns in the Book of Decentralized Finance
It’s safe to say, upon our upcoming platform launch, UniLend will offer a DeFi experience unparalleled by any other protocol on the market. As you can see from our recent comparisons, UniLend is truly unique; it will be unmatched in terms of features and functionality, and will continue to grow in strength and unique value in the long-term as we push forward on our mission to unlock the true potential of decentralized finance.
We hope this series has clarified the overall value proposition of the UniLend protocol in comparison to other major DeFi players.
More educational Medium pieces are in the pipeline, so stay in touch to get the latest news about UniLend Finance by following us on our growing social media outlets.
The UniLend team would like to thank our incredible community for your immense support. As always, we remain available to you should you have any questions. Never hesitate to reach out!
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