Bluejay Finance Overview
Money without borders
Bluejay Finance is a capital-efficient decentralized stablecoin protocol for issuing stablecoins pegged to real-world currencies. Every stablecoin issued is backed by protocol-owned liquidity.
The introduction of USD stablecoins has allowed individuals and businesses to not only pay and receive payments but also to gain access to a wide variety of financial services like money exchanges (ie Uniswap), investments (ie Synthetix), asset management (ie Yearn), etc. This has helped reduce inequality by democratizing access to financial services, even for the underbanked population (ie Nigerians using DAI).
However, most stablecoin solutions are centered around USD and not designed for other currencies. This means that users do not have a choice of having exposure to currencies other than USD in the DeFi space.
By having stablecoins of different currencies around the world on the blockchain, we lower the barrier for businesses and individuals in these countries to transact with minimized currency exchange risk. This helps to widen the product offerings of existing DeFi companies that provide crypto invoicing (ie Request), streaming payments (ie Sablier), etc.
The ultimate goal of Bluejay Finance is to lower inequality by providing and enabling equal access to low-cost financial services for all.
There are two main strategies for market participants: Staking and Bonding. Stakers stake their BLU tokens in exchange for more BLU tokens while bonders provide liquidity or DAI tokens in exchange for discounted BLU after a vesting period.
In addition, you can participate in growing the protocol by partaking in governance on our community discord. We welcome any help and initiatives to support and grow the protocol to one that the world deserves.
Stakers are aligned to the overall growth of the entire protocol. When there are more bonders, stakers, and stablecoin users, more value is generated for the protocol through bond sales and transaction fees on liquidity pools which in turn backs the value of BLU.
As a staker, you benefit from the supply growth when the protocol mints BLU tokens for distribution. Staked BLU is automatically compounded every second, this means a staker who is staking BLU over a longer period of time will have exponentially higher rewards than those staking for a short period of time. This ensures that firm believers of the protocol are hugely rewarded and there is the least value leaked toward stakers who are here for a short-term gain.
Bonders are critical in the overall protocol growth and price stability of stablecoin by introducing more liquidity and assets to the protocol treasury or helping bring the stablecoins to peg, in exchange for a direct discount on the BLU token.
As a bonder, you benefit from the direct discounts on the BLU by committing your assets upfront. The BLU will be redeemable at a set point in time and realized profits will depend on the BLU price when the bond matures.
Stablecoin users are users or protocols which use the different stablecoins minted by Bluejay. They benefit from having the flexibility of choosing what currency exposure they will like to have. These stablecoins are fully backed by the protocol's liquidity and can be redeemed for reserve assets on the decentralized exchanges anytime.
As a stablecoin user, you benefit from a rent-free stablecoin with deep liquidity. These stablecoins are not yield-bearing in nature but could be used as primitives in other protocols that support savings, lending & borrowing, or asset management.
Bluejay welcomes collaboration from protocols & businesses that would like to diversify their risk, provide users who prefer different underlying assets on their investments, or grow DeFi adoption in various countries.
Last modified 4mo ago