Introducing BlueBit Vault V1 — the Renaissance of LP farming
BlueBit testnet is hotly ongoing with more than 37,000 different wallet addresses tested in our beta product. We’ve received tons of feedback/praises/bug reports from our enthusiastic community members and it was of great help for us in pushing products to a better state.
Thank you all!👏👏👏
While It’s quite prevailing for Aurora explorers to farm single-sided pools in lending protocols, we now have something different for you. Maybe it’s time to pair up your tokens and farm in LP. This article is for you DeFi degens on the eve of the BlueBit mainnet launch, get blued!
TL;DR
What’s BlueBit Vault V1?💙
BlueBit Vaults V1 is our first generation automated yield optimizer focused on providing LP token holders with auto-compounded yields at empirical optimal intervals. It is expected to launch on the mainnet by early April.
How does it work?
In short, when a user deposits his AMM LP tokens into the vault, our protocol contract allows automatically selling his/her DEX rewards ($TRI, etc.) roughly every 30 minutes and then converts the rewards into the LP token constituents for the same pool you are farming and compounds them onto your farming principal.
Meantime, users will also earn $BBT as a reward. We will charge a fee for maintenance and development purposes, half of which will be rewarded to veBBT holders weekly.
What’s special about it?
- Tokenomics
BlueBit will be the first protocol that brings the vote escrow style tokenomics model aboard Aurora, by locking utility tokens to governance tokens, users will be able to share platform fee rebates, boosted yields, and voting rights for protocol governance.
For those who wonder about how ve-style tokenomics can change the dynamic of the DeFi protocol, we recommend a good article for you to read:
“Field Guide to the Curve Wars: DeFi’s Fight for Liquidity”.
2. BlueBit Farming Philosophy: 6 Chances to earn
Taking advantage of BlueBit’s best-in-class vault strategy and its unique tokenomics design, users will be earning spree:
💱Trading fees: when you provide liquidity to a DEX, you earn about 0.3% trading fees whenever a swap between the liquidity pair takes place. You will still earn this fee when depositing with BlueBit;
🔥Auto-compounded yield: our protocol contract automatically sells DEX rewards ($TRI, etc.) roughly every 30 minutes and then converts the rewards into the LP token constituents for the same pool you are farming and compounds them onto your farming principal. Users can expect the convenience of set and forget, optimal APY due to compounded yield, and save on gas.
If you still don’t have a clue about the magic of compounding, here is a simple representation:
🔵$BBT reward: On top of compounded LP earning, liquidity providers will also be rewarded with BlueBit native token $BBT. We will have a grand mining program for platform users upon mainnet launch.
📅Weekly rebate: Lock $BBT to earn more — At the end of each week, $veBBT holders will be able to harvest the weekly rebate pool based on their $veBBT shares, which contains 50% of all protocol income during the week, in the form of wNEAR and $BBT equally. Juicy passive income!
🚀Boost: with veBBT, now you will also earn a boost up to 2.5x on the liquidity mining incentives. You will take a sharp lead in terms of your APY especially when the total veBBT share is small. So take the lead and farm in full power!
💵Treasury bonus: Community-owned treasury grows as it’s accumulating partial of the platform fees. BlueBit users can expect surprises from time to time.
(To learn more about BlueBit, please visit our Docs here.)
