Blaster V3

Introduction

Blaster V3 (Concentrated Liquidity) is the ultimate tool for putting liquidity to work. Blaster V3 allows users to decide how much trading fees, native yield, Blast Gold, and Blaster pre-tokens they want to earn.

Blaster V3 is designed for maximum liquidity efficiency while utilizing native Blast yield. It is the first V3 on Blast to natively support USDB and ETH (wETH) generated yield.

Concentrated Liquidity

Concentrated liquidity is a major advancement in decentralized finance (DeFi). It allows liquidity providers (LPs) to allocate their capital to specific price ranges within a liquidity pool, rather than across the entire price curve, resulting in more efficiency and potentially higher returns.

Traditionally, AMMs distribute liquidity uniformly across a wide range of prices. Concentrated liquidity, however, enables LPs to focus their funds within chosen price intervals, creating deeper liquidity at those levels. If the market price stays within this range, trades have less price impact due to higher liquidity. If prices move outside this range, the liquidity becomes inactive until prices return.

Benefits of Concentrated Liquidity

• Higher Capital Efficiency: LPs achieve higher returns by concentrating liquidity where it is most utilized.

• Customized Risk Management: LPs can manage exposure by selecting price ranges that match their market outlook and risk tolerance.

• Improved Market Depth: Deeper liquidity pools within specific price ranges result in better pricing and lower slippage for traders.