Blueshift is about to become the black hole of liquidity on Cardano—and beyond
Blueshift is a new capital-efficient AMM digital exchange protocol based on decentralized liquidity portfolio management, delivering low impermanent loss, low price slippage and unprecedented APRs.
The most advanced features of the contending DeFi players include Smart Order Routers (SORs) and limited wallets. Blueshift goes beyond these established approaches and offers a wide range of innovations, which have the potential to reinvent DeFi.
While being a DEX at its core, Blueshift offers a host of innovative mechanics, which create a new category of products beyond DEXs.
Blueshift innovations include single token liquidity, virtual pairs, internal pricing oracles, Blueshift reserve model, community managed liquidity wallets and liquidity wallet managers as well as a controllable minting schedule of the BLUES token.
These innovations result in broader areas of benefit that can be summarized as improved user experience and improved convenience, superior security, and increased efficiency and capital efficiency.
In numbers, these innovations translate into price slippage that can be reduced by up to 2-10x, impermanent loss reduced by up to 10x, APRs of 60-75%, and even zero or negative fees for arbitration transactions.
All of these advantages are associated with the ability to execute multi-token transactions at the price of a single transaction as well as the ability to generate revenue from slippage, as a liquidity provider.
Likewise, users will be able to use farms and yield pools on the same platform they use to trade and provide liquidity, meaning they never have to leave the familiar Blueshift user interface.
At the same time, users will in the future also be able to use other chains via the same familiar Blueshift user interface, without having to access multiple wallets and protocols. This cross-chain integration will be made possible by Milkomeda.
Blueshift’s main enabler is Milkomeda, a layer 2 blockchain, which will allow users and Blueshift itself to exploit various opportunities in the future.
Users will be able to easily cross chains and execute low cost trades on any EVM chain without having to leave their own favorite chain. The emerging cross-chain environment will provide access to expanded liquidity and improve the scalability of the Blueshift ecosystem.
After Milkomeda, the Blueshift team will continue to integrate new EVM compatible channels into the platform. Arbitrum, BSC, Avalanche, Solana. After the integration of Solana, other EVM compatible chains will also be taken into account and integrated.
Benefits for users of the Blueshift ecosystem
Blueshift provides traders, arbitrageurs, LPs, holders and users with a mix of the previously listed roles, with significant advantages over established solutions.
Traders have access to a streamlined trading UI and enhanced user experience, the lowest price slippage in the industry as well as all possible trading pairs between tokens in a portfolio and zero fees for arbitration transactions.
Liquidity providers, on the other hand, have access to one-sided token liquidity provision, take advantage of the decisions of professional money managers, and have the ability to perform super-efficient swaps using virtual pairs, eliminating unnecessary swaps and offering more convenience.
Likewise, the impermanent loss is reduced up to 10 times and additional revenue from external protocols can be paid to the user.
BLUES holders are rewarded with an unprecedented APR from yield pools and see the economic state of their tokens protected by a controlled token minting and burning schedule.
Similarly, BLUES holders control the ecosystem through decentralized governance, allowing the community to vote on portfolio managers and the composition of portfolios.
Finally, by holding BLUES, holders become part of a community pushing the boundaries of DeFi 2.0!
Traders, liquidity providers and BLUES holders
In addition to improved user experience, superior financial security and financial efficiency, users can also enjoy unprecedented financial advantage. The so-called “unprecedented APR” is made up of the following:
- Wallet APR – linked to the increasing market value of users’ wallets and shares
- DEX APR—related to trading fees that can be earned
- Farming APRs – tied to earnings from user contributions to farming and yield pools
- External protocol APR – related to revenue from providing liquidity to partner protocols, e.g. through loans
The BLUES token and Tokenomics
The BLUES token is central to the governance of the Blueshift ecosystem and token holders will be able to play an active role in governance. BLUES token holders can vote on both the selection of portfolio managers and the token composition of portfolios.
BLUES token holders can also benefit from staking opportunities, offering an APR of up to 75% in the form of BLUES tokens which are provided as staking rewards. A total of 45% of the BLUES token supply was allocated to staking rewards.
Blueshift uses an inflationary model with a hard limit of 100 million tokens. Tokens are minted on every block with a monthly decrease in block rewards. Typing is initially controlled by the Blueshift team, while in the near future, typing speed and other tokenomics parameters will be exclusively controlled by the Blueshift community via DAO mechanisms.
Typing speed will start from ~0.06 BLUES per second and then decrease with a monthly factor of 0.96. On the other hand, the burning process is facilitated by exchanging accrued protocol fees for Blueshift tokens on excess auctions.
Those interested in being one of the first to acquire BLUES tokens can do so via the Blueshift IDO which will be held on the Cardano-centric launch pad Occam Razer. After IDO, the only way to acquire BLUES tokens will be in the secondary market, approximately two days after the IDO pool opens.
For the first quarter of 2022, it is planned to deploy the protocol on Milkomeda Testnet and Cardano testnet, launch the BLUES token via an IDO on Occam Razercarry out the deployment of the Blueshift protocol on Milkomeda and link the BLUES tokens to the Ethereum blockchain.
The initial deployment of the platform in the first quarter of 2022 will include liquidity wallets, unilateral liquidity provision, virtual pairs, implementation of the Blueshift reserve model, farms and yield pools.
On the other hand, Arbitrum integration, decentralized wallet management system, advanced trading and liquidity analytics, DAO and multi-chain protocol are expected to be deployed or integrated in the latter part of 2022. .