Blueshift is a new capital-efficient AMM exchange protocol based on decentralized liquidity portfolio management. This is a DEX that utilizes multiple innovative mechanisms which facilitate new DeFi realities such as zero or negative arbitrage fee, significantly reduced impermanent loss due to the dynamic reserves model, liquidity portfolios, and the decoupling of token price from token reserves.
Quick Fact About Blueshift
|DEFI Coin Name||Blueshift|
|Circulating Supply||2,494,963.00 BLUES|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To Visit|
|Twitter Group||Click Here To Visit Telegram Group|
|Documentation||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
Blueshift`s innovations include
Single-token liquidity provision Virtual pairs Internal pricing oracles Blueshift Reserve Model Community managed liquidity portfolios and liquidity portfolio managers Controllable minting schedule of the BLUES token
These innovations translate into broader areas of benefits, including:
An enhanced user experience and improved convenience Superior security Higher capital efficiency and effectiveness Liquidity Providers’ revenue generation from slippage In numbers, these innovations lead up to the following performance parameters: Price slippage reduced by 2-10x Impermanent loss reduced by up to 10x APRs of 60-75%.
$BLUES token utilities
Governance over Liquidity Portfolios and the Blueshift ecosystem Staking and Farming rewards Participate in protocol’s $BLUES buy-back program
100,000,000 total supply 45 % allocated for staking rewards
The $BLUES token is a Cardano Native Asset that has been bridged to Milkomeda. The token will soon be bridged to other chains. To view the Tokenomics table click here.
Blueshift’s key differences from other DeFi solutions
Single-sided liquidity provision
Users can provide liquidity with one token instead of pairs which usually demand extra swaps and transaction costs. This feature significantly reduces impermanent losses for Blueshift users.
Blueshift invented a new type of a liquidity pool that can hold more than 40 types of cryptocurrencies. This offers a multitude of benefits such as reducing slippage by evening it out across all portfolio asset types and the possibility of liquidity providing a single type of cryptocurrency, or a combination of all types of cryptocurrencies within a single portfolio.
In other words, a liquidity portfolio can be understood as an advanced version of a liquidity pool—which can contain several dozen different cryptocurrencies.
Liquidity Portfolio managers
Liquidity portfolio managers are professionals that have been selected to manage Blueshift’s liquidity portfolios.
Portfolio managers provide advice to protect a portfolio from low-quality assets as well as advice to add new assets with high growth potential. BLUES token holders vote on these suggestions. BLUES token holders can likewise vote to replace a manager or provide a bonus, at any moment—according to the performance of the manager’s portfolio.
Blueshift users will be able to build their own custom liquidity portfolios, however, this feature will only be utilizable by advanced users.
Controllable minting and burning schedule
BLUES token minting speed is ~0.06 BLUES per second whereby it will decrease by a monthly factor of 0.96. This will be modifiable via the DAO which is set to be operational in Q3 of 2022. The burning schedule will likewise be in full control of the community after the DAO is deployed.
Virtual pairs are Blueshift’s equivalent of CeFi synthetic pairs, with a very important modification. Blueshift’s ‘Synthetic Pairs’, or Virtual Pairs—are created dynamically by the protocol during users’ swaps. Every time a trade is being executed—the protocol builds a synthetic pair that provides the best price for the traded asset.
In CeFi, synthetic pairs are custom made pairs created by users which consist of multiple connected pairs.
In other words, with the help of Virtual Pair technology, the Blueshift protocol can build a Virtual Pair ADA <> ETH from, for example, three different pairs: ADA <> BLUES, BLUES <> PAVIA and PAVIA <> ETH. The new synthetic trading pair ADA <> ETH will have a different and possibly better price for either ADA or ETH.
Blueshift Reserve Model
The Blueshift Reserve Model is the concept that enables users to perform zero-fee or negative fee arbitrage. The model is based on utilizing 10 % of the actual reserves for an arbitrage which results in arbitrageurs being incurred with higher slippage but no trading fees. Through the utilization of this mechanism, Liquidity providers suffer significantly smaller Impermanent losses.
Liquidity Providers’ protective mechanisms
The Blueshift DEX has a deposit and withdrawal limit for liquidity providers implemented which protects liquidity portfolios from malicious actions.
Likewise, if an assets’ price goes sharply downwards, below the EMA, or sharply upwards, above the EMA—the portfolio automatically decreases reserves for virtual pairs with this asset. This makes price slippage higher and protects LPs from dramatic losses.
Decoupling of token reserves from token price
Decoupling the token reserves of a liquidity portfolio from the price of each token allows for the reduction of impermanent losses.
Through the aforementioned decoupling—Blueshift provides unprecedented flexibility in portfolio asset management and the reuse of liquidity in external protocols for higher APRs.
As a consequence of utilizing the Milkomeda technology—Blueshift users have the ability to acquire cryptocurrencies from various chains. The number of available assets on Blueshift, as well the number of integrated chains—will continue to steadily increase.
The so-called “unprecedented APR” is comprised of the following elements:
Portfolio APR—related to the growing market value of portfolios DEX APR—related to trading fees that can be gained Farm APR—related to gains from the users` contributions to farming and yield pools External protocol APR—related to revenues gained from partner protocols
Upcoming Blueshift Milestones
Second Quarter of 2022. will be marked with Arbitrum integration, deployment of the decentralized portfolio management system as well as the integration of advanced trading and liquidity analytics.
During the Third Quarter of 2022. Blueshift will deploy full on-chain DAO and list the $BLUES token on Tier 1 Exchanges.
By the end of 2022. Blueshift will become a Multichain protocol.
The order of chain integration, ordered according to the schedule of integration, is as follows: Arbitrum, BSC, Avalanche, Solana, and afterward—other EVM compatible chains.