NMKR provides liquidity to Blueshift Exchange
The Cardano Index is a joint venture between NMKR, Blueshift, Cornucopias, and VyFinance. The index has been successfully launched on the Blueshift DEX. In this post, we will dive deep into outlining what makes this index different and how NMKR is providing liquidity to Blueshift Exchange.
There are a couple of main points to take into consideration. Firstly having the tokens on Milkomeda is a step towards interoperability. Users that are coming in from other ecosystems, such as Bitcoin or Ethereum holders, can bridge over their assets to Blueshift exchange and get exposure to tokens like $NMKR or $VYFI. There are many existing bridges and platforms that are integrated with EVM chains such as Milkomeda, making the adoption of the chain fairly easy.
Blueshift’s portfolios could be seen as being similar to other platforms that use portfolios but in reality they have built their own platform from the ground up. Blueshift employs a list of unique innovations including virtual pairs and single sided liquidity to be able to provide low slippage from aggregated liquidity, low impermanent loss and a simpler user experience for those using the decentralized exchange.
We are excited to see NMKR, one of Cardano's strongest projects, on Blueshift DEX. We believe that the NMKR blockchain toolkit will help bring up numerous NFT projects and decentralized apps to enrich the Web3 space. This aligns very well with Blueshift's own goals. As a trusted part of the ecosystem, NMKR now has its rightful place in the Cardano Native Index - Igor Struchkov, CTO of Blueshift
"We are delighted to take part in the Cardano Index; this is an important step for us and allows us to gain exposure across other blockchains," said Patrick Tobler, CEO & Founder of NMKR. "We acknowledge that cross-chain interoperability and collaboration are key for the growth and adoption of blockchain technology."
In order to understand what Blueshift is and what it means for a user or a holder, let's take a look at the core elements that Blueshift DEX provides.
What happens after NMKR provides liquidity? How is the Blueshift different from other AMM-based DEXs (e.g., Sundaeswap)?
Blueshift is one of the only DEXes that holds Cardano native tokens and has access to external liquidity from other chains. From a project’s point of view, the project can simply supply their own token as opposed to token and ADA which other AMM DEXes require.
From a user's perspective, they will be able to swap any token that is available on this DEX with $NMKR token. When a user performs a swap on the DEX, a virtual pair is formed across the DEX with the aggregated liquidity. This virtual pair forms with deep liquidity, allowing for low slippage on the users trade compared to other standard AMM based DEXes.
What ownership does a user have when they only stake NMKR tokens into a portfolio with VYFI, COPI, and BLUES?
When a user provides single-sided liquidity to the portfolio and, for example, provide the $NMKR token and only that token, the assets that they own are still the same $NMKR tokens. They will not own any other token in that portfolio. A user can invest one token and get exposure to all tokens in the portfolio proportionally to their amounts in the portfolio.
How can a user lower the chances of impermanent loss?
Normally, users that provide liquidity in multiple volatile assets can suffer from impermanent loss due to the token price of a particular asset moving in a negative direction compared to the other base token in their trading pair.
Blueshifts portfolio indexes allow for a users to move one single asset in or out of the portfolio, reducing the exposure to a secondary volatile asset.
Between which other tokens can a user swap? What are the benefits?
A user can swap between any other token that is available on the DEX. Users that have bridge assets such as wrapped BTC or ETH can swap for any of the Cardano assets in the Cardano Index. A user can create the trading pair that they wish, e.g. $BLUES for $ADA, and perform the simple swap.
The Blueshift DEX will determine the optimal routes for trading between the various pools and provide any user with a simple interface to swap the assets they desire.
Are there any unique attributes of Blueshift that investors or traders should be aware of?
Blueshift likes to rewards its long term users and have create a smart minting system and auto-hodl yield farming pool to help with rewarding the users.
Users on the DEX have an option to lock in their BLUES rewards and accumulate them on the platform.
Their auto hodl pool allows users BLUES rewards for providing liquidity to be automatically staked back into the platform, allowing it to compound over time. There is also a unique TVL milestone point when BLUES tokens that are earned by users are unlocked and released to them.
You can read more about Smart Minting system on their documentation site.
Thank you for reading.
Your NMKR team