FAQs

What is Blaze?

Blaze is a decentralized exchange (DEX) and liquidity marketplace on the Bitfinity blockchain. It offers features like token swapping, liquidity provision, and a unique gauge voting system for veBLAZE token holders, enhancing trading revenue and influencing the platform’s direction.

What makes Blaze unique on the Bitfinity blockchain?

Blaze stands out as the native liquidity layer for Bitfinity, designed to solve the ‘cold start liquidity’ problem for new protocols and provide established projects with sustainable liquidity incentives. Its integration of Automated Liquidity Management (ALM) and concentrated liquidity pools offers enhanced efficiency and profitability.

How does Blaze’s Automated Liquidity Management (ALM) work?

ALM in Blaze allows liquidity providers to adopt a ‘set-and-forget’ strategy, where Automated Liquidity Managers compete to offer the best returns and impermanent loss protection, enabling users to maximize returns effortlessly.

Can you explain Blaze’s gauge voting system?

Blaze employs a gauge voting system inspired by Curve Finance, where veBLAZE token holders vote on the allocation of emissions among liquidity pools. This democratic approach allows token holders to directly influence the platform’s revenue distribution.

What is concentrated liquidity and how does it benefit Blaze users?

Concentrated liquidity allows users to allocate their capital within selected price ranges, maximizing fee earnings when asset prices are within these ranges. It leads to higher capital efficiency, better trade execution, and potentially higher returns for liquidity providers.

What are the risks associated with providing liquidity on Blaze?

While Blaze offers innovative solutions to optimize liquidity provision, risks such as impermanent loss and market volatility remain. The platform addresses these through ALMs and tailored liquidity strategies, but users should be aware of these inherent risks.

How does Blaze support smaller protocols and new projects?

Blaze focuses on reducing entry barriers for smaller protocols by consistently analyzing market dynamics. This inclusive approach encourages broader participation and supports the growth of emerging projects in the DeFi space.

What are oBLAZE tokens, and how do they work?

oBLAZE tokens are part of Blaze’s innovative tokenomics, and is distributed to liquidity providers as the emissions token. Each oBLAZE has strategic options for LPs to exercise like purchasing BLAZE at a discount, converting to veBLAZE, or redeeming for BLAZE-BFT LP tokens. This system aims to reduce selling pressure on BLAZE and boost liquidity.

Can anyone participate in Blaze’s governance?

Participation in governance is open to veBLAZE holders. By locking $BLAZE tokens to receive veBLAZE, users gain voting power in governance decisions, including gauge voting and protocol improvement proposals.