Blueshift is a new capital-efficient AMM digital exchange protocol based on decentralized liquidity portfolio management, providing low impermanent loss, low price slippage and unprecedented APRs.
The most advanced features of contending DeFi players include Smart Order Routers (SORs) and limited portfolios. Blueshift goes beyond these established approaches and provides a wide range of innovations, which have the potential to reinvent DeFi.
While being a DEX at the very core, Blueshift offers a multitude of innovative mechanisms, which create a new product category beyond DEXs.
Blueshift`s innovations include single-token liquidity, virtual pairs, internal pricing oracles, Blueshift Reserve Model, community-managed liquidity portfolios and liquidity portfolio managers as well as a controllable minting schedule of the BLUES token.
These innovations translate into broader areas of benefits that can be summarized by an enhanced user experience and improved convenience, superior security, and higher capital efficiency and effectiveness.
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 arbitrage operations.
All these advantages are coupled with the ability to execute multi-token trades at the cost of a single transaction as well as the ability to generate revenue from slippage, as a liquidity provider.
Likewise, users will be able to utilize farms and yield pools on the same platform they use to trade and provide liquidity, meaning they never have to leave the familiar Blueshift UI.
At the same time, users will in the future also be able to use other chains via the same known Blueshift UI—without the hassle of accessing multiple wallets and protocols. This cross-chain integration will be enabled by Milkomeda.
Cross-Chain Integration
The key enabler of Blueshift is Milkomeda, a Layer-2 blockchain, which will allow users and Blueshift itself to tap into various opportunities in the future.
Users will be able to cross chains with ease and execute transactions at low fees on any EVM chain whilst not having to leave their own preferred chain. The emerging cross-chain environment will provide access to extended liquidity and enhance the scalability of the Blueshift ecosystem.
After Milkomeda, the Blueshift team will continue to integrate new EVM-compatible chains into the platform. Arbitrum, BSC, Avalanche, Solana. After the integration of Solana, other EVM-compatible chains will be considered and integrated as well.
Benefits for Blueshift ecosystem users
Blueshift provides traders, arbitrageurs, LPs, holders and users that are a mix of the previously listed roles—with significant advantages over established solutions.
Traders
Traders have access to a simplified trading UI and an enhanced user experience, lowest price slippage in the industry as well as every possible swap pair between tokens in a portfolio and zero fees for arbitrage operations.
Liquidity Providers
Liquidity providers on the other hand get access to single-sided token liquidity provision, reap benefits from professional portfolio managers’ decisions and have the ability to perform super-efficient swaps utilizing virtual pairs—eliminating unnecessary swaps and providing convenience.
Likewise, Impermanent loss is reduced by up to 10 times and additional revenues from external protocols can flow towards the user.
BLUES holders
BLUES holders are rewarded with an unprecedented APR from yield pools and have their tokens economic state protected by a controlled token mint and burn schedule.
Likewise, BLUES holders get to control the ecosystem through decentralized governance, allowing the community to vote on portfolio managers and the composition of portfolios
Lastly, by holding BLUES, holders get to be a part of a community pushing the boundaries of DeFi 2.0!
Traders, Liquidity Providers, and BLUES holders
In addition to an enhanced user experience, superior financial security, and financial efficiency, users can also benefit from an unprecedented financial upside. The so-called “unprecedented APR” is comprised of the following elements:
- Portfolio APR—related to the growing market value of portfolios and the users` shares
- DEX APR—related to trading fees that can be gained
- Farm APRs—related to gains from the users` contributions to farming and yield pools
- External protocol APRs—related to revenues gained from supplying liquidity to partner protocols, for example through lending
The BLUES token and Tokenomics
The BLUES token is at the core of Blueshift’s ecosystem governance and holders of the token will be able to play an active role in the 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, providing an APR of up to 75% in the form of BLUES tokens that are provided as staking rewards. In total, 45% of BLUES token supply has been allocated for staking rewards.
Blueshift uses an inflationary model with a hard limit of 100M tokens. Tokens are minted every block with a monthly decrease in block rewards. Minting is initially controlled by Blueshift’s team, whilst in the near future—minting speed and other tokenomics parameters will be exclusively controlled by the Blueshift community through DAO mechanisms.
The minting 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 the accumulated protocol fee for Blueshift tokens on surplus auctions.
Individuals interested to be one of the first to acquire the BLUES tokens—can do so via Blueshift’s IDO which will be held on the Cardano-centric launchpad OccamRazer. After the IDO, the only way to acquire the BLUES tokens will be on the secondary market—approximately two days after the IDO pool is opened.
Roadmap
For Q1 of 2022, it is planned to deploy the protocol on Milkomeda Testnet and Cardano testnet, launch the BLUES token via an IDO on OccamRazer, perform the deployment of the Blueshift protocol on Milkomeda and bridge the BLUES tokens to the Ethereum blockchain.
The initial deployment of the platform in the first Quarter of 2022 will include Liquidity portfolios, Single-sided liquidity provision, Virtual pairs, Blueshift Reserve Model implementation, farms and yield pools.
On the other hand, Arbitrum integration, decentralised portfolio management system, advanced trading and liquidity analytics, DAO and multichain protocol are planned to be deployed or integrated in the later part of the year 2022.
If you want to find out more about the project, we suggest reading educational articles about the Blueshift technology or studying the Blueshift deck.