The Blueshift team have been working on pushing the boundaries of interoperable cross-chain decentralised exchange (DEX) in the decentralised finance (DeFi) space. To reach this goal, the team have built a new cross-chain protocol called BluesChain which will allow the Blueshift DEX to perform fast and capital-efficient cross-chain swaps across multiple different cryptocurrencies and blockchains.
BluesChain will allow users to seamlessly perform swaps across various ecosystems without needing a centralised authority in its internal portfolios. Partners and other DeFi protocols can use our cross-chain protocol to perform these swaps.
Built on the underlying blockchain platform, Cosmos SDK, the new BluesChain uses the secure and faster Tendermint consensus algorithm to validate transactions on the network. Being used by many notable projects, such as BNB Chain, the Cosmos SDK has proven itself to be a robust and secure platform to build upon.
Thanks to Blueshift’s routing protocol, innovation is upon us in the DeFi space! Tokens from local portfolios can now be swapped across multiple chains through intermediate cross-chain portfolios with just a single transaction. This has revolutionised how we think about token swapping and opened up many possibilities for our decentralised future.
How Does BluesChain Differ from Using Bridges
While bridges have been proven to be valuable solutions for moving assets between ecosystems, we will complement this approach with a cross-chain protocol that will make it easier to perform swaps between different ecosystems on which Blueshift is present. BluesChain will create a more efficient and seamless experience within the newly created Blueshift ecosystem that will remain connected to external ecosystems through bridges.
BluesChain acts as a distributed ledger between the connected chains registering and orchestrating cross-chain transactions. This means the solution interacts directly with the various blockchains connected to move assets without using wrapped assets. Not having wrapped assets and liquidity locked in the smart contracts means there is less of a chance of hacks due to a vulnerability in the smart contract of a bridge.
There are no blockchain-related assets on BluesChain since it acts as a distributed ledger between the primary layer-1 blockchains it is connected with. This means no synthetic or wrapped assets regarding swaps and moving liquidity on Blueshift.
How BluesChain Complements Existing Cross-Chain Swap Solutions Like Symbiosis?
Symbiosis solves the same problem of cross-chain swaps but uses an intermediary token, such as a stablecoin, to allow cross-chain swaps. It also requires the liquidity of the various DEXes that it is connected to the Symbiosis protocol, to be able to perform the swaps.
On the other hand, Blueshift can do this without the use of wrapped assets or synthetics. Blueshift has a cross-chain portfolio consisting of several tokens with at least one from each blockchain, for example, ADA, ALGO, KAVA and BLUES. This cross-chain portfolio will allow direct routes for swaps between the different chains without an intermediary stablecoin or intermediaries. Swaps will become significantly more efficient for selected portfolios that exist cross-chain.
The efficiency of swaps is further enhanced by the acquired liquidity that will be aggregated across ecosystems. BluesChain will create significant synergies between ecosystems and further leverage its unique technology. Our virtual pairs mechanism, for example, will play a key role in reducing price slippage while tapping into a broader foundation of cross-chain liquidity.
Symbiosis and BluesChain can work together to provide users with swaps between ecosystems where each other isn’t connected.
BluesChain is an application-specific, stand-alone blockchain with its own set of validators that anyone in the community can set up and become a validator.
Using the existing yield pool mechanisms on Blueshift, users can stake their BLUES tokens and delegate them to various validators on the network or use their staked assets to become validators themselves. This would allow them to earn a share of the transaction fee rewards and benefit from various incentives Blueshift offers its community.
On the initial launch of BluesChain, the team and key partners will run the validator nodes for the community. In a second step, Blueshift will further decentralise the network, allowing operators to become a validator for the network.
More information will be released in the future on how you can become a validator for BluesChain.
When Will BluesChain Launch?
At the time of writing this article, the testnet of the BluesChain is up and running, ready for users to start testing and providing feedback. Internally, the team is in their quality assurance phase, testing the user interface and everything around it. Please keep an eye on all the social accounts for the official announcement of the testnet.
Following on from the testnet and the various amounts of feedback, we will finalise the launch process and aim to launch on the Mainnet by mid-Q1, 2023.
What to Expect?
As a user, you will see new portfolios on the DEX explicitly labelled as cross-chain portfolios. These will complement existing portfolios and provide a great variety of opportunities for Shifters to benefit from a growing ecosystem.
When performing a swap on the DEX, users will see a few extra options, such as choosing the destination of the swap, for example, initiating the transaction on Cardano, and ending the swap on Ethereum.
The speed of the transaction will depend on the speed of the blockchain the swap is interacting with, but overall, it can be ten times faster than existing cross-chain solutions.
The safety of users’ funds and transactions on the cross-chain protocol will be extended because of the absence of wrapped assets and the need for smart contracts to hold the assets.
We’re very excited to deliver BluesChain as a new solution for users in the DeFi space. Our solution will have
- No need for wrapped assets within the Blueshift ecosystem
- Be able to draw upon aggregated liquidity and form virtual pairs for swaps
- Reduce slippage
- Cheaper and more capital efficient
- Be as fast as another other Proof of Stake blockchain/protocol
Keep an eye open on social media for our official launch on Testnet and Mainnet and how you could provide us with good and unique feedback to help improve and grow together.