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b0x

b0x is a protocol that can be integrated into current exchange infrastructure. b0x provides the backend smart contracts that power decentralized exchanges. b0x also provides a bridge to easily link exchanges’ user interface to the b0x protocol.

Rating: 3.6

Official contacts
Location: N/A
Web-resources:   Whitepaper Website
Social networks: N/A
Product source tracking: https://github.com/b0xNetwork
Details Description Risks Full analysis Team

Detailed review

Stage of product development
Currently the team has dApp alfa version 0.2. There is no info about the coming TGE as the team has been consulting with security auditing agencies concerning smart contracts and it will take a few months.


Token description
Pre-ICO date
-
ICO date
TBA
Token price
1 B0X = 0.073 USD
Platform
Ethereum
Hard cap
36500000
Capitalization of token pool
91250000
Blockchain
Ethereum
Token distribution date
N/A
Consensus method
Proof of Work
Escrow
N/A
ICO currencies
ETH
Bounty camping
N/A
Markets
N/A
Token functions
The B0X token is a governance token: holders get to vote on the direction of further b0x protocol development. B0X token is a medium of exchange token used in the b0x protocol layer. It is used to pay trading fees. Specifically, it is used to pay maker and taker fees to the relays. The b0x token is used to incentivize relays to aggregate order books. The BOX token is a utility token with two main functions: 1. The incentivizabon of order book aggregation by relays 2. Governance of the box protocol The BOX token functions for the box protocol much like the ZRX token functions for the Ox protocol. Both tokens coordinate networks of rational economic agents around a protocol. Both are used to facilitate continuous, decentralized updates to the protocol.
Tokens distribution
TGE (40.0%)
Development fund (20.0%)
Founding team (15.0%)
Incentive fund (10.0%)
Presale (10.0%)
Advisors (5.0%)
Risks
MARKET

However, b0x is not the very first project in this field: Lendroid, dharma, and dydx. The last one has a stronger core team of developers, experienced working in financial tech infrastructure companies, and already attracted investment from Andreessen Horrowitz, Polychain Capital, and several other top tier funds. Lendroid already has a mechanism for margin calls. The high frequency of exchange hacks might be a risk for the integration of more sophisticated trading activity tools.

PRODUCT

The roadmap is very high-level and only provides the development stages up until the end of 2018.

BUSINESS MODEL

According to the model, the lender will pay 10% fee. But at the same time the team states that the protocol will enable to avoid some intermediaries and banks for lender. The team does not state who will perform the function of Oracle

FINANCES

The project valuation is above the median of similar projects. For instance, Lendroid aims to raise only 5000 ETH, which is around 4M USD as of 7th of May 2018. The given allocation of funds is not quite detailed and does not give much information.

TEAM

The core team has never had experience in ruling any business. All these factors diminish the project success, not only in the TGE campaign, but also in the future platform launch. The company is not supported by well-known advisors and community There is only two software engineers in the project, all other people have experience in different fields. There are no marketing specialists in the team.

Full analysis
Market

Currently, the market of crypto trading platforms is on its early stages of development, and, many of the common for traditional trading activities now do not exist in the crypto world. In this regard, the development of margin funding and lending tools seems as an organic way of crypto trading development. However, b0x is not the very first project in this field: Lendroid, dharma, and dydx. The last one has a stronger core team of developers, experienced working in financial tech infrastructure companies, and already attracted investment from Andreessen Horrowitz, Polychain Capital, and several other top tier funds. Lendroid already has a mechanism for margin calls.

Product

b0x is a protocol that can be integrated into any (b)0x standard relay. b0x provides the backend smart contracts that power decentralized exchanges. It is a margin lending and trading protocol extending the functionality of 0x-standard relays. The b0x project has two layers: the protocol layer and the oracle layer. The protocol layer contains the b0x.sol and b0xVault.sol contracts, which control the order object logic, escrow of funds, and decentralized governance. The protocol layer is governed by b0x token holders to facilitate seamless and decentralized contract updates. The oracle layer allows for monitoring the health of margin accounts, and for liquidating trades when these accounts fall outside the margin maintenance requirements. The team intends to provide an interface for 3rd party oracle developers to “plug-in” to their network. There will be a marketplace where developers can compete to deliver the best Oracle solution. Concluding, b0x replaces the third party who would normally hold lenders’ and traders’ keys with a smart contract. The smart contract doesn’t need to hold lenders’ and traders’ keys. The company seeks to be at the nexus of the disintermediation of the financial system. The aim of the product is replacement brokers, banks, and clearing houses with smart contracts. The GitHub of b0x was created in late September 2017, and the development started around this time. Currently, the public alpha version of the product is available and it can be tested. The roadmap is very high-level and only provides the development stages up until the end of 2018.

Business model

b0x protocol is based on Ethereum dApp - smart contracts that, when executed, are included as blocks by miners of the Ethereum blockchain. The protocol has 3 types of tokens. B0X token is for the TGE pre-sale and crowdsale, it acts as a utility token and has two functions. The B0X token is a governance token - holders get to vote on the direction of further b0x protocol development. B0X token is a medium of exchange token - it is used to pay trading fees, specifically, it is used to pay maker and taker fees to the relays. SUGR token stands for bounty hunters payments and reimburse trading fees. There is no TGE of the SUGR token; it is distributed according to usage of the oracle. SUGR tokens are redeemable for a fraction of the Ethereum collected from the fees on interest taken from lenders. The 3rd one is iToken. They are interest bearing versions of your existing tokens. The team is going to create a liquid secondary market for the iTokens, allowing users to get out of lending more quickly. Also the team is going to create a wallet SDK that handles the iToken management automatically. The iToken interest is generated through margin lending. In bOxOracle, a ten percent fee will be collected from the interest earned by lenders and will be used for several functions, including: decentralized governance, bounty hunter incetivization, gas fee refunds, and systemic risk insurance. The fees collected by bOxOracle will be tokenized and distributed to its users. Lenders and borrowers will receive Sugar (SUGR) tokens to compensate them for taker fees and gas. Bounty hunters will receive Sugar tokens as their bounty. This token will be used to decentralize governance of the oracle, giving the individuals invested in the network a vote in proportion to their usage. SUGR tokens are backed by Ether and redeemable for a fixed percent of the bOxOracle reserve. As bOxOracle collects more fees, the Ether reserve grows along with the value of the SUGR token.

Finances

b0x plans to raise $ 36,5M during the pre-sale and TGE sale with the fix price of 0,073 USD per B0X Token, selling 40% during TGE and 10% during presale. The total cap of the project thus will be 91.25M USD. The project valuation is above the median of similar projects. For instance, Lendroid aims to raise only 5000 ETH, which is around 4M USD as of 7th of May 2018 ETH price. The team leaves for itself 15% of tokens with a four-year vesting scheme. According to the allocation plan, 50% of raised funds will go to the product development, 15% to advertising and marketing, and 10% stand for legal costs. There will be 5% of tokens reserved for conferences participation and misc. The given allocation of funds is not quite detailed and does not give much information.

Team

Currently the team consists of at least 5 people. They are not strong experts and programmers, which will be able to develop the platform. It is a source of some alarm, as the founders of the b0x have not special education and strong experience in this field. The idea of the b0x protocol almost totally concerns technical aspects and only one of founders has degree in computer engineering. The second one came from biology. Moreover, the team does not supported by any advisor. All these factors diminish the project success, not only in the TGE campaign, but also in the future platform launch. Overall, many of the core competencies are not covered in the team.

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