‘Smart Minting System’ has been out for a few weeks now and the Blueshift team received a lot of positive feedback regarding the new approach of rewarding users who are actively using Blueshift’s Yield Pools and Farms!
As you might know, BLUES token holders can stake their BLUES in Yield Pools to receive additional BLUES tokens. Likewise, Blueshift users can stake their LP tokens in Farms to receive even more BLUES.
However, the Blueshift team is aware that rudimentary changes in the protocol like this one can create confusion and misunderstanding among the community members.
That is why it was decided to transparently and directly address all the questions that the community has about the new minting strategy — via this article!
Increase in the rewards
Before the update, the minting speed of BLUES token was 0,1 BLUES per block.
Now, stakers and liquidity providers get distributed 2 BLUES per block, although they can unlock only 7,5% (0,15 BLUES) of them immediately. That is a 50 % increase in rewards available for immediate harvest!
This means that after the Blueshift team introduced the ‘Smart Minting System’, the staking and liquidity providing rewards got significantly boosted — approximately 20x!
However, some users felt that rewards dropped compared to before the update, and the reason lies in multipliers. To establish a better balance across portfolios, it was needed to change the multipliers of specific portfolio farms.
Thus, if someone is providing liquidity to a portfolio farm that now has a smaller multiplier, it is recommended to move their liquidity to portfolios with a higher multiplier.
Long-term TVL goals
As stated, 2 BLUES are being minted every block, while only 0,15 BLUES (7,5%) are available for immediate harvesting through the first individually assigned account. The rest (1,85 BLUES) is accumulated in the other two individually assigned accounts that will be unlocked after Blueshift reaches a certain amount of Total Value Locked.
The first target is set on $ 200 million TVL which will open up the tokens accumulated in the second account (45%), while the third account (47,5%) will be unlocked after reaching the $ 500 million TVL.
The decision underlines Blueshift’s vision of establishing a stable protocol that will prevent long-term holders from losing money due to the inflation of BLUES tokens that come with a higher minting rate.
After the announcement, the team also received questions regarding the potential removal of liquidity, by the provider — from the specific portfolio before the goals are met. In this case, the accumulated value will stay in the second and third account and will be unlocked for harvesting after the TVL goals are reached.
If the TVL goals are never reached, the tokens will either be locked forever to prevent inflation and the devaluation of provided liquidity, or unlocked by the Blueshift DAO.
In any scenario though, you will always benefit from immediately harvestable rewards that were increased by 50%!
Strategy for achieving the ambitious TVL goals
The Blueshift team devised a strategy for achieving these targets, which is composed of four themes.
The first strategic theme is named ‘Ecosystem growth’ and its main goal is to expand the Blueshift horizons beyond Milkomeda. This expansion will start with Cardano, followed by other ecosystems.
Initiatives to be featured in the near future:
- Bridging support for the Blueshift tokens
- CNT bridging support and CNT portfolios
- Cross-chain swaps
- Additional integration of external protocols
- Deployment on Arbitrum and other ecosystems
The next strategic theme on the list is so-called ‘Portfolio growth’.
This strategic theme is centered around the addition of new tokens and portfolios, providing users with a greater variety of options for adding liquidity.
The ‘Smart Minting System’ was also a part of this strategy, and in the future, the team will direct efforts towards stableswaps and adding new portfolios — especially more theme-based portfolios such as gaming!
‘Product experience’ is the name of the third strategic vector. Here, the aim is to make the Blueshift app more attractive and engaging through the improvement of UI/UX.
The Blueshift team is aware that the product is the focal point of every user’s journey, which is why one of the primary goals is to make it as smooth as possible for everyone.
Also, Blueshift will implement new trading and liquidity analytics in the application, as well as advanced trading options.
The fourth strategic theme, named `LP Leverage` is all about growing the user base.
Concrete initiatives contained within include a smart referral system, LP and trading contests, as well as marketing campaigns that will broaden the Blueshift user pool. One of these campaigns is the Shockwaves campaign which will be described in the following section.
The Shockwaves Campaign
The goal behind the Shockwaves Campaign is to attract users that will provide liquidity and hence increase the Total Value Locked. The users that do so will be rewarded in the form of an increased APR/APY. The APR/APY represents the profitability of a farm and depends on various factors. Some of these factors are, for example, the amount of liquidity, minting speed and the token price.
Impermanent loss and high inflation that are caused by higher minting speed, often lead to negative profitability. With the Blueshift’s new smart minting system that is featured via the Shockwave Campaign, the inflation problem is resolved by tying it directly to the adoption of the ‘inflated’ token.
The set $200 million and $500 million targets were derived from the analyses of competitors, market potential, and strategic pricing considerations. If the first goal is achieved, Blueshift will be among the top 100 DeFi projects by TVL. If the second goal of $ 500 million is achieved, Blueshift will be among the top 30 DeFi projects by TVL.
With this Campaign and new smart minting system, the Blueshift team aims to reward all those users who were with them from the beginning and are eager to keep supporting the Blueshift ecosystem.
Achieving these goals is related to Blueshift’s “2025 & beyond” plan and connected to various initiatives over the next couple of years that are aiming at sustainable growth.
One of the aforementioned initiatives is the smart referral program that will be launched soon.
The Blueshift team showed their Shifters many times that the team is capable of delivering set roadmap objectives. It should now be clear that with all these strategies and set goal posts — Blueshift has a bright future ahead.
All Blueshift users are welcome to join and contribute to this bright future! This means that should any Blueshift community member have input, concern, idea or opinion — with regards to anything Blueshift, they are welcome to voice it!
The Blueshift team listens, and takes action.