Some of us are still struggling with the concept of Liquidity Pools.



What exactly are they, and why are they important in crypto and where does Bluejay Finance fit in?

We explain in a short thread!🧵👇

1/ What are Liquidity Pools (LPs)?

Liquidity Pools are pools that facilitate trading on Decentralized Exchanges (DEX).

Most importantly:
- Anyone can provide/remove liquidity
- Anyone can trade on pools
- Permissionless

2/ Why are LPs needed?

Centralized exchanges have capital inefficiencies where Market Makers can and will facilitate trades by being willing to buy/sell an asset.

This might result in potential price manipulation.

LPs attempt to solve this problem.

3/ How do LPs work?

LPs create a market for a particular pair of assets in equal supply on a decentralized exchange (e.g DAI/bluSGD) where liquidity providers are incentivized through transaction fees whenever someone trades on the pair.

4/ How does Bluejay Finance fit in?

Bluejay offers LPs that users can add in to earn fees from swaps. Additionally, these LP tokens can be used to purchase $BLU at a discount through bonds on the protocol.

LPs & Bonds are important as it helps capitalize our Treasury!

5/ How to add funds into an LP?

We created a video guide just for you! Check it out:
https://youtube.com/shorts/gr26CrI6wV4?feature=share

A Beginner's Guide to Liquidity Pools in Crypto

What is on-chain credit and why is it so important to crypto?

Here at @BluejayFinance, we are building a platform where investors and businesses alike can easily get access to investment and financing opportunities.

In this thread, we ELI5 on-chain credit and why it matters🧵👇

1/ On-chain credit imports trust from traditional credit check and underwriting mechanisms to allow borrowers to use their existing real-world assets as collateral for DeFi loans. This increases capital efficiency and diversifies capital.

2/ The silver lining in the bursting of the initial DeFi bubble is that investors now understand that high yields aren’t necessarily the most attractive. A balance between returns and sustainability could be considered the most desirable!

3/ This brings us to the next point - how does RWA lending fit into the picture?

RWA Lending is tokenized lending of real-world assets, creating a digital representation of the lending that can be used by borrowers and lenders of @BluejayFinance.

4/ Previously, DeFi was circular. Investors used crypto to take out loans in crypto in the name of yield farming.

While this has been a big step forward, the industry needs to interact with assets in the real world before it can be integrated with traditional finance.

5/ Solutions like Bluejay Earn are working to bring RWA Lending on-chain.

This can offer yields from sources not tethered to crypto market volatility, providing a more stable and predictable source of yield while reducing the risk of credit market collapses and contagion.

6/ Moving the lending process on-chain offers transparency to investors, as it enables them to evaluate portfolio performance provided by borrowers and thus make more accurate risk assessments.

This could provide a more sustainable source of yield.
https://twitter.com/BluejayFinance/status/1626114383435948032

7/ By tokenizing assets and placing them on the blockchain, investors and borrowers can have seamless access to financing, investing, and earning from actual business activities.
https://twitter.com/BluejayFinance/status/1626114400640958464

8/ Instead of 'trust me bro' and confusing fine print etched into registration forms, investors in Bluejay Earn can perform their own DD on borrowers depending on the info they provide.

9/ A borrower that promises 20% APR but doesn't provide enough info? You make the decision if you'd like to take that risk!

CONCLUSION

As DeFi's narratives constantly evolve, @BluejayFinance is glad to be at the forefront of on-chain credit with the upcoming launch of Bluejay Earn!

If you are interested to learn how to earn up to 15% APR on your stablecoins, check us out:
earn.bluejay.finance

You can read the unrolled version of this thread here: https://typefully.com/BluejayFinance/1Tgb9gN

On-chain Credit And Why It Matters To Crypto

Real Yield Vs. Inflationary Emissions, what's the difference and why does it matter?

We point out the common Red Flags and factors you should look out for to determine a protocol's value! 🧵👇

1/ 🚩 Inflationary Emissions are unsustainable in the long run.

To maintain the high APYs offered and to attract new users to the project, token emissions outpace protocol revenue and this causes dilution of token value.

APY cannot be maintained if revenues don't increase!

2/ 🚩 Project's treasury is quickly depleted

Projects will usually turn to their treasury to continue fueling the high APYs leading to the eventual downfall of the project if they cannot build revenue streams to replace the inflationary token model.

3/ What should you look out for then?

Protocols that focus on the following:
✅ Real, sustainable yield generated from activities/products like a real business - @BluejayFinance
✅ Revenues that outpace token emissions
✅ Rewards you in stablecoins/blue-chip tokens

4/ What is Bluejay Finance building to generate Real Yield?

Our upcoming Bluejay Earn is the epitome of what we aim to deliver:
🔑 Accessibility for investors and borrowers
🏪 Investing in innovative and high-potential small businesses
💰 Earning sustainable passive income

5/ How does Bluejay Finance fit into the picture?

🚀 Upcoming Bluejay Earn allows you to earn up to 15% APR on your $bluSGD, a non-USD based #stablecoin,(earn.bluejay.finance)
🚀 Rewards from Bluejay Earn are paid in kind and generated from real business activities.

6/ Conclusion

The recent narrative in the industry has flipped to the need for non-USD stablecoins.

@BluejayFinance is glad to be at the forefront with our launch of $bluSGD, and our upcoming Bluejay Earn will be the catalyst of change to serve an emerging market in Asia!

You can read the unrolled version of this thread here: https://typefully.com/BluejayFinance/iU4dZmZ

Real Yield Vs. Inflationary Emissions: What’s The Difference?

🚀 The launch of Bluejay Earn is on the horizon!

We put forth information in our documents for you to read through here:
https://docs.bluejay.finance/bluejay-earn-core-concepts/

But we understand you want someone to do the research for you, so here's the thread you are looking for!🧵👇

1/ TL;DR

- Bluejay Earn is a decentralized credit protocol with borrower pools.
- Lenders can invest with no min. required, fixed rates & duration.
- Borrowers can directly raise funds by efficiently using DeFi.
- Bluejay acts as a facilitator.

2/ What is Bluejay Earn, and how does it work?

Bluejay Finance acts as a marketplace for borrowers and lenders to interact and transact.

Borrowers can create loan pools to directly raise funds, and lenders can invest in these pools to earn a yield on their stablecoins.

3/ Why Bluejay Earn?

There are 2 underlying issues Bluejay Earn was created to solve:

- >60% of people in SEA are underbanked and lack access to formal financial services like credit.
- Investors lack access to a variety of financial products due to high barriers to entry.

4/ Who will Bluejay Earn benefit?

- Small businesses which contribute a large portion of the GDP and employ most of the local talent can leverage DeFi to get access to credit, which they previously couldn't.
- investors who are looking to protect and grow their wealth.

5/ Who can be a lender?

Anyone who holds $bluSGD can be a lender! To buy and sell $bluSGD, see the information below:
https://docs.bluejay.finance/user-guides/buying-and-selling-blu

Check out the diagram for the information a lender must look out for:

6/ Who can be a borrower?

Any business can create borrower pools by providing information and proposing the terms and conditions of their loan. However, there is no guarantee that lenders will fully supply funds to the borrower pool.

Success metrics are highlighted below:

7/ What are Loan Terms to look out for?

Some key terms include est. APR, payment frequency, and loan tenure.

All of these terms will be part of the Smart Contract. See the diagram if you are a visualizer than a reader:

8/ Type of Borrower Pools

Permissionless Pool - Earn protocol enables anyone to create a borrower pool.

Facilitated Pool - Loans in this pool are facilitated by Bluejay's BD Team to help with operational requirements during the loan term.

9/ Loan Lifecycle

So what goes on behind a loan?

TL;DR, if a minimum is reached, it means a borrower can draw down on the loan and the tenure will start according to the terms.
If minimum funding is not reached, all funds will be refunded to the lenders.

10/ Fees

Fees are only charged upon the successful funding of a loan pool.

What does success look like?
- Pool assets > min. funding required.
- Borrower drew down on loan before drew down period ended.

11/ Legalities and Risk Disclosure

For more information on legalities and risk disclosure, it is encouraged that you read the full information by yourself as the information is too crucial to breaking down into bite-sized pieces.
https://docs.bluejay.finance/bluejay-earn-core-concepts/legalities

CONCLUSION

As Bluejay Earn nears its launch, we are proud to be one of the changemakers in bringing real economic activities on-chain and giving accessibility to borrowers and lenders to easier financing & investment opportunities, all with the use of DeFi!

You can read the unrolled version of this thread here: https://typefully.com/BluejayFinance/wQ0rbKc

Bluejay Earn: ELI5 (Borrowers)

🚨🚀 The launch of Bluejay Earn is on the horizon!

We've updated our docs to share more details about the protocol.
https://docs.bluejay.finance/bluejay-earn-core-concepts/

Let's take a quick dive into how it works 🧵👇

1/ TL;DR

- Bluejay Earn is a decentralized credit protocol.
- Earn sustainable real-yield of 7-15% from opportunities that were only available previously to high net-worth individuals and financial institutions.
- No minimum amount required.


2/ Sounds good? Here's how the yield is generated.

Yield comes directly from borrowers who are FinTechs lending out to good businesses across Asia as well as directly from borrowers themselves.

3/ Protocol's mechanism

Borrowers can create loan pools with their terms to directly raise funds from lenders.

Once a pool is filled, borrowers drawdown to deploy capital for productive usage.

Lenders earn yield when borrowers repay interest and principal.

4/ Erm, I can already access...

Well, most of the attractive fixed income opportunities have high barriers:

- Requiring local bank accounts
- Requiring minimum investment amount
- Requiring accredited investor status

We are smashing barriers for everyone to have access.

5/ Fees

Short answer is that there are no fees for lenders.

How are you sustainable you ask? The protocol makes revenue from AMOs. More details on this medium article:
https://medium.com/bluejay-finance/bluejay-finances-revenue-model-explained-4a51b9a8ee64


6/ Excited? Want to know how to get started?

We will be launching in a few weeks. But here are some actions you can take today.

- Get $bluSGD in your wallet. You can look at these tutorials.
https://docs.bluejay.finance/user-guides/buying-and-selling-blu

- Sign up for your interest at https://tinyurl.com/4ru7c5md

CONCLUSION

As Bluejay Earn nears its launch, we are proud to be one of the changemakers in bringing real economic activities on-chain and giving accessibility to borrowers and lenders to easier financing & investment opportunities.

Comment below if you have questions!


You can read the unrolled version of this thread here: https://typefully.com/BluejayFinance/tL5USzB

Bluejay Earn: ELI5 (Lenders)

With the recent news around USD stablecoin issuance, the need for decentralized and non-USD stablecoins like $bluSGD is more crucial than ever for the ecosystem.

Here's why we've been bullish about non USD since 2021. 🧵👇

1/ TL;DR

Non-USD-based stablecoins are key building blocks for the next wave of crypto users and DeFi ecosystems.

Being decentralized would put in place a mechanism that ensures it gives accessibility to everyone, like what we have done with $bluSGD & our Earn Product!

2/ What are stablecoins?

Stablecoins are a bridge between TradFi and crypto, allowing easy on and off-ramp options for investors.

However, all these stables, previously, were pegged to the USD  as the primary currency.

3/ Evolving purposes of stablecoins

Stablecoins were at first created to preserve value and for investors & traders to capture volatility in crypto quickly.

They have recently been utilized for activities like yield-generating leading to the emergence of newer use cases.

4/ New use cases allow users to have more choices

These new use cases have allowed users of stablecoins to have a variety of options to utilize their stablecoins, besides using them as a medium of exchange.

5/ Why USD stablecoins?

USD stablecoins have been widely used due to USD's usage in traditional markets around the world and to being known as one of the strongest currencies in the world. However, using USD stables carries a certain amount of risk as we have recently seen.

6/ FX Risk

Emerging markets around the world have an inherent risk when onboarding USD-pegged stables.

Imagine onboarding $IDR to a USD stablecoin. Intermediaries like banks charge fees upon conversion to USD, and there's also the risk of foreign exchange between exchanges.

7/ Strong need for non-USD stablecoins

With the evolving regulatory landscape around USD stables, there comes an inherent need for non-USD-based stablecoins to be adopted within the ecosystem.

8/ Why the need?

To continue serving as a medium that not only serves what it was created to do in the first place but also gives financial accessibility, and the opportunity to invest & earn without exposure to USD risk.

9/ Introduction of $bluSGD

Our introduction of $bluSGD in Dec 2022 is our first step towards addressing that need and though the journey is arduous, we can see the end game and way beyond that.

10/ Why are $bluStables important?

With $bluSGD and $bluStables, we are building not only the base currency layer for a more accessible and open finance, but also applications for end users, such as the upcoming Bluejay Earn, to help them achieve their financial goals.

11/ What is Bluejay Earn?

Bluejay Earn was built around our objective of accessibility through DeFi for the real world.

This is the catalyst for us to serve this pressing need by providing access to invest and earn through solving real-world needs.
earn.bluejay.finance

12/ How are we making finance more accessible?

We recently wrote a thread on on-chain asset lending which you can find below, that will explain how we are making finance more accessible:
https://twitter.com/BluejayFinance/status/1620996742635462657

13/ When will it launch?

Soon, anon. We are happy to announce that we have interested borrowers looking to take part in the launch, and participants who registered interest earlier on would be given priority access to this opportunity.

P.S, you still can register your interest!

14/ How would it work?

Great question. To answer that, you can easily refer to our docs below where we have put into detail the core concepts around our Earn Product.
https://docs.bluejay.finance/bluejay-earn-core-concepts/overview

Stay tuned for explainer videos if you are more of a listener than reader!

15/ CONCLUSION

All-in-all, we strongly believe that this catalyst would propel @BluejayFinance to greater heights, riding on the recent events regarding #stablecoins and providing accessibility to non-USD-based stablecoins easily.

If you are excited about our launch as we are, register your interest below:
earn.bluejay.finance

You can read the unrolled version of this thread here: https://typefully.com/BluejayFinance/o66hIxa

Tagging our buddies who are building a similar ecosystem with us, and friends who have given us relentless support:
@FinanceFlorence
@ClearpoolFin
@goldfinch_fi
@maplefinance
@AlphaSeeker21
@rwa_xyz
@AngleProtocol
@RequestFinance
@veloprotocol
@defi_cheetah

Bluejay Finance: The Need For Non-USD-Based Stablecoins

There have been several questions on how @BluejayFinance is generating yield, how the winnings of our sure-win lucky draw are being paid out, and if we are here to stay. 🤔

These questions are definitely valid, and we explain 🧵👇

1/ How does @BluejayFinance generate yield

The Flywheel Effect

Bluejay’s Treasury accrues value simply by owning the bulk of the liquidity in the stablecoin pools. We also participate in arbitraging to profit from tiny differences in the asset’s listed price.

2/ How does @BluejayFinance generate yield? - 2

Besides The Flywheel Effect, our soon-to-be-launched Earn Product enables depositors to generate enhanced stablecoin yield via connecting on-chain liquidity with real-world needs!

Explore more:
https://earn.bluejay.finance/

3/ Where do the winnings of our sure-win lucky draw come from?

A portion of $pBLU has been allocated earlier on, with 7.5% of tokens for Marketing activities. These tokens are backed by Seed Investors from our $2.9m funding round conducted here:
https://medium.com/bluejay-finance/bluejay-finance-our-first-funding-round-a1f4a8c5a628

4/ Is Bluejay Finance here to stay? - 1

Definitely! We keep building despite the Bear Market.

Our team consists of experienced DeFi Natives like Gigajays @SherryYanJiang, @GeoffTRichards, @yemyat91, and @geek_sg whose profiles can be easily found on LinkedIn.

5/ Is Bluejay Finance here to stay? - 2

Our protocol has also been built to solve real-world problems like the lack of accessibility to financing in underserved markets around South-East Asia, as evidenced by research:
https://www.weforum.org/agenda/2022/02/closing-southeast-asia-s-financial-inclusion-gap/

CONCLUSION

Whilst we work towards the launch of our Earn Product in the next month or so, we hope that you continue taking part in our daily sure-win lucky draw!

If you haven't registered your interest for our upcoming launch, do so below:
earn.bluejay.finance

You can read the unrolled version of this thread here: https://typefully.com/BluejayFinance/VkcC2DI

How Does Bluejay Finance Generate Yield?

Nearly 100,000 ETH has been obtained through MEV Boost since The Merge event.

As part of your crypto journey, it's crucial to grasp the ideas of MEV for a comprehensive comprehension of Ethereum or any other L1 Blockchain.

We explain like you are 5🧵

1/ MEV stands for Maximal Extractable Value.

Block Producers (previously miners in PoW, now validators in PoS) can arrange transactions in a block. Rearranging transactions can lead to profit through actions such as front running, arbitrage, JIT Liquidity, and sandwich attacks.

2/ Sandwich attacks can be explained with an example: Blue is buying $100k worth of ETH ($1600) on Uniswap using USDC with a 1% slippage tolerance ($1616 max per ETH).

3/ Jay (an automated program) buys $25,000 in ETH at the current $1600 price before Bob, causing the price to rise to Bob's max. Then, Alice sells it back to the liquidity pool at the new price for a profit 💰💰💰

4/ In a sandwich attack, the nefarious actor takes advantage of a buyer's slippage tolerance. As seen in our example, Jay buys ETH before Blue's large order, driving up the price, then sells it back to the liquidity pool for a profit.

5/ The catch is that the block's validator must include Jay's two transactions (before and after Blue's $100k buy) for the profit to be guaranteed. Jay's bot must pay the validator for this favorable arrangement, which is one type of MEV (Maximal Extractable Value)

6/ How does this apply to @BluejayFinance?

MEV Bots are deployed on almost all LP pairings in DEXes like Uniswap, not barring DAI/bluSGD.

If you were to swap your DAI to bluSGD directly, you will be sandwich attacked by an MEV bot, thus losing value on your swaps.

7/ How can you prevent such attacks then?

We introduced our Peg Stability Module (PSM) hosted on app.bluejay.finance, allowing you to swap 1:1 from #xSGD to #bluSGD without suffering any slippage.

8/ Why PSM?

PSMs were first introduced back in Nov 2020 on MakerDAO and have been very successful in maintaining the peg of DAI, warranting its usage for bluSGD as well. Our PSM would also allow for easier arbitrage between SGD & USD stablecoins in the future!

9/ How to use the PSM?

We created a walkthrough video last week detailing how you can take part in our sure-win lucky draw on lucky.bluejay.finance simply by HODL-ing $bluSGD.

See below:
https://twitter.com/BluejayFinance/status/1621107382171598849

CONCLUSION:

MEV Bot and sandwich attacks will continue to exist as long as there are profits to be made. What you can do to protect yourself is to continuously educate yourself through educational threads like this!

You can read the unrolled version of this thread here: https://typefully.com/BluejayFinance/7xJ6zG8

MEV: What Is It, And Why It Matters?

1/ Despite 2022's scandals, crypto's recent price surge shows it's here to stay.

Tokenization of real-world assets is just one of the game-changing technologies driving this #blockchain revolution.

Learn how @bluejayfinance builds for the future 🧵👇

2/ Tokenization brings liquidity to previously illiquid assets, creating new investment opportunities and leading to more diversified portfolios.

@BluejayFinance aims to enable easy investment opportunities for investors interested in emerging markets.

3/ Additionally, tokenization brings improved transparency; going back to the core values of why blockchain was even created in the first place.

@BluejayFinance core ethos is built around understanding why we do what we do and how we do it.


4/ Tokenization also lowers barriers to entry for investors, giving wider access to a range of investment opportunities that were previously only accessible to the top 1%.

With @bluejayfinance, anyone and everyone can invest.

5/ The Boston Consulting Group estimates the tokenization of real-world assets to reach $16 trillion by 2030, and we are all just getting started

For reference:
https://twitter.com/Blockworks_/status/1621209118903238657

6/ Anon, you are still not too late to hop into one of the rockets that are about to take off.

Fasten your seatbelts, because today, we are overjoyed to announce that you can now register your interest in our Earn Product, allowing you to earn up to 15% APY on your $bluSGD!

7/ Where do the yields come from you may ask? 🤔

@BluejayFinance empowers local businesses who previously struggled to access financing accessibility to scale, innovate and grow in an ever-changing world through Corporate Bonds, Collaterised Loans, and Receivable Financing.

8/ Interest rates higher than your local banks 🏦

No need for:
🙅 Crediting your salary
🙅 Purchasing a bank product
🙅 Min. spend on your bank card

You earn what is offered to you, with no middlemen and no minimum requirements.

9/ Passive income is so cliche, but everybody wants it anyway.

Who isn't happy with an extra $5 every day?

Choose from a selection of products depending on your risk profile and earn regular stable returns! 💰

10/ @BluejayFinance is here to stay, and with the official launch of our Earn Product nearing, we are on the rocket ship to the moon and be part of the $16T market by 2030. 🌑

Register your interest to be the first to know when deposits are opened! 👇
https://earn.bluejay.finance/?utm_source=twitter&utm_campaign=announcement

You can read the unrolled version of this thread here: https://typefully.com/BluejayFinance/rgEWdZ8

Tagging the gigajays and RWA frens riding the rocket ship to the moon!

@SherryYanJiang
@yemyat91
@a7izaidi
@GeoffTRichards
@ClearpoolFin
@goldfinch_fi
@maplefinance
@carapacefinance
@arbela_io
@FinanceFlorence

Bluejay Finance: Register Interest For Earn Product

1/ The Rise of Real World Asset (RWA) Lending in Crypto: Why it Matters

RWA Lending in crypto is revolutionizing the traditional finance industry by providing a new investment opportunity for crypto holders.

Why is it so important? Click to read 👇

2/ Ever since everyone discovered the truth about certain Centralised Institutions back in 2022, the industry has been clamoring for more transparency amidst the opacity of how the yield is being generated.

That is where RWA Lending steps in.

3/ No more Ponzi-nomics, and no more 'trust me, bro'.

RWA Lending takes into account the growing demand of individuals and businesses around the world requiring credit but being unable to access them easily through TradFi.

4/ With decentralized systems and blockchain technology, RWA lending in crypto offers improved transparency, efficiency, and security compared to TradFi.

Additionally, barriers of entry are broken down, making lending and credit easily accessible to anyone around the world!


5/ Here at @BluejayFinance, we have a huge focus on the Southeast Asian Market, especially in the Philippines as we have discovered that a majority of businesses are underserved due to their inability to access credit easily through traditional methods.

6/ You may then ask, 'Why borrow from protocols like @BluejayFinance when we already have Aave and Compound?'

Here's why:
They mainly serve crypto natives who borrow to leverage farm and trade. Interest rate varies in a broad spectrum, and it is usually a maximum of 90% LTV.

7/ Businesses, on the other hand, require financing to scale their businesses, hire skilled employees, and also ensure that they are able to sustain their operations to break even eventually. Loans from current DeFi Protocols will help, but only to a certain extent.

8/ In a 2021 study by the Tech for Good Institute, https://techforgoodinstitute.org/the-platform-economy-southeast-asias-digital-growth-catalyst/ over 60% of surveyed MSMEs were unable to get a loan when they needed financing.

Most of them dealt in cash, making it difficult to build a credit history giving them access to formal financial tools.

9/ That is where @BluejayFinance steps in.

We intend to close the gaps in Financial Inclusion in the Asian economy, and what better way but to build liquidity-backed, decentralized stablecoins away from the usual USD denominations to serve an underserved and niche group.

10/ Our upcoming Earn Product is built around this ethos, and we are excited to bring it to fruition very soon!

$bluSGD, was introduced to allow businesses to easily cash out in local currencies, in this case, $XSGD. Read more about our PSM here:
https://twitter.com/BluejayFinance/status/1615938921321594880

11/ Did you also know that our sure-win lucky draw was built with the idea that you are able to earn a sustainable yield on your $bluSGD?

Win up to $18 bluSGD every day till 10th March 2023!

Take part here:
lucky.bluejay.finance

12/ CONCLUSION:

As the industry evolves from the mentality rekt-ing each other to the one where real-world problems are being solved one problem at a time, we at @BluejayFinance are extremely bullish on the narrative of easy access for anyone and everyone around the world.

Tagging our RWA friends and the Gigajays who are making this industry a better one to be in:

@maplefinance
@goldfinch_fi
@ClearpoolFin
@TrueFiDAO
@centrifuge
@SherryYanJiang
@yemyat91
@carapacefinance
@InVarFinance


You can read the unrolled version of this thread here: https://typefully.com/BluejayFinance/a6A0oZZ