As Bluzelle is working with DeFi projects for our Oracle services, we see DEXs play an important role in the growth of the blockchain industry as they can make it easier for customers to exchange $BLZ and pay for services like Bluzelle.
DEXs such as Uniswap, Balancer & Curve are becoming extremely popular. According to DEFI Pulse, $40.16 Billion worth of crypto assets are locked as of today, almost 4X growth in the past 90 days. With its neck-breaking growth, it’s important for BLZ to be well-positioned there.
We are kicking things off with a BLZ-USDC pair on Uniswap along with a 4-week incentivized liquidity pool. This will serve as a test to see how it performs with our long-term objective to have highly liquid $BLZ pairs across the major DEXs.
What is Uniswap?
Uniswap is a protocol that allows buyers and sellers to swap ERC20 tokens without the use of an exchange or order book. Uniswap uses an algorithmic equation that automatically determines the swap rate based on the balances of both tokens and the actual demand for this swapping pair.
Anyone who supplies equal values of ETH/USDC and an ERC20 token to the Uniswap exchange contract is called a liquidity provider. In return, they are given tokens from the exchange contract which can be used to withdraw their proportion of the liquidity pool at any time.
Whenever someone trades on the exchange, the trader pays a 0.3% fee which is added to the liquidity pool and split proportionally between all existing liquidity providers.
Bluzelle x Uniswap Incentivised Liquidity Pool
We are launching liquidity pool on Uniswap where contributors have the ability to earn BLZ without the need to stake on the Bluzelle platform. Starting with BLZ/USDC pool, more other pairs will be added later on. We encourage everyone to add liquidity to the pool and stake their ERC20 BLZ in order to earn extra tokens.
Program Start Date:
19th February 12PM at UTC + 8
Duration:
4 weeks
Total Reward Pool:
Up to 1,000,000 BLZ. This is part of the 20M tokens set to be distributed for Bluzelle staking in the first year.
How is this different from Staking with Bluzelle
This is a program of limited period
No conversion to native BLZ tokens is needed. You can participate in the pool with your ERC20 BLZ
No locking of BLZ tokens. You can withdraw your BLZ any time
You not only earn BLZ rewards from Bluzelle, as a liquidity provider, you are also earning fees for every trade that happened on Uniswap.
Get Started
On Friday 19th Feb, we will publish a detailed step-by-step guide on how you can participate in the liquidity pool to earn BLZ rewards. Please stay tuned!
⚠️Risk Warning
This liquidity pool feature is not operated by Bluzelle and is only provided to you as a convenience. Therefore, Bluzelle is not liable for any loss or issues you might have as a direct or indirect result of participating in this and/or any associated activities.
There is the potential for divergence loss due to the algorithm used by Uniswap. As a consequence, you may receive a different distribution of tokens upon redemption than you initially added. That means the ratio of your BLZ to USDC may change over time. You could end up with more BLZ or USDC depending on which way people are trading. Please educate yourself on the risks of providing liquidity and the concept of divergence loss before participating.
By participating, you acknowledge that you fully understand and accept all the risks thereof.
About Bluzelle
Bluzelle aims to be the go-to data layer for Web 3.0 by providing a decentralized data network that is tamper-proof and has greater privacy, scalability and availability than traditional solutions. Powered by Cosmos, Bluzelle handles 10,000 TPS and is a delegated proof of stake. Bluzelle’s DeFi solutions are being developed to enhance Defi with historical price feeds, provide data analytics, 360-degree views, and more. As DeFi grows, Bluzelle’s infrastructure services play a big role.
