We’re excited to launch our portfolio-based decentralised exchange (DEX) on the Milkomeda Algorand A1 Rollup. This creates new opportunities for Algorand and existing ecosystems already connected to Blueshift and Milkomeda.
Users will soon be able to use our decentralised exchange’s distinctive features and innovations, which were not possible previously. This will allow customers to try out the advantages of cross-chain interoperability and what the Ethereum Virtual Machine (EVM) may offer for DeFi on Algorand. Blueshift is pleased to be one of the first DeFi protocols to debut on Milkomeda Algorand A1, and we’re looking forward to expanding our platform even further.
How Will Algorand Users Benefit from Using the Blueshift Decentralised Exchange?
There are many benefits that Alogrand users will find when using our DEX. These include:
- Portfolio pools
- Portfolio management
- Virtual pairs
- Low slippage swaps
- Low impermanent loss
Portfolio pools work differently from traditional decentralised exchanges, which normally require liquidity in trading pairs. Blueshift, on the other hand, group multiple tokens together but remain independent of each other.
When swaps are performed on the DEX, all the liquidity is drawn upon to create virtual pairs. Since all of the liquidity can be derived, it reduces slippage and price movements when dealing with low liquidity. This mechanism of virtual pairs can also protect a token’s price from manipulation and prevent losses when there are price movements that significantly differ from its exponential moving average.
Portfolio pools also have the ability to allow users to invest in one token as opposed to a pair of tokens since the grouped tokens in a portfolio are independent of each other. This single-sided liquidity provisioning is a great usability improvement for many users that are wanting to provide liquidity to the DEX as it doesn’t require them to obtain a secondary token to form a pair.
Lastly, portfolio management enables users to get exposure to the best tokens within an ecosystem. The managed portfolios resemble exchange-traded funds in how a group of tokens together act as an indicator of market strength for an ecosystem.
As the Blueshift team rolls out more features, Algorand users will also be able to make cross-chain swaps to Cardano assets without needing to sell their assets via a centralised exchange with very low fees. Combining these two ecosystems opens up many opportunities for users on either blockchain.
To find out more and to start engaging with our community, join our Discord server.