Yield & Rewards

Introduction

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.

V3 Liquidity Providers can decide how much native yield, trading fees, and Blaster pre-tokens they want to earn by optimizing their liquidity position price range. This is achieved by adding pool-generated Blast native yield to the global fee parameter, distributing the yield based on the fee share earned by each LP. This allows users with smaller positions to compete with larger liquidity providers by maintaining a tight LP range. The higher the liquidity concentration, the higher the reward.

Blast Native Yield

The unique Blaster V3 design allows Blast native yield generated through USDB and wETH rebasing to be claimed from the entire pool every time a swap occurs in that pool. Claimed yield is then distributed to the pool liquidity providers based on the fee share they have earned. To receive a portion of the generated yield, users' liquidity must be active, meaning the current price has to be within the users’ specified price range.

Users who maintain a tighter range could potentially earn more native yield than their position can generate, while users with full-range positions, wide ranges, or out-of-range positions might receive less native yield or none at all.

Blaster Rewards

Blaster V3 introduces a new 'Active' reward system based on the total active liquidity in the pool. For every $1000 in active liquidity (liquidity within the price range), 300 pre-tokens are generated every 24 hours. Out-of-range liquidity does not contribute to or earn rewards. Rewards are distributed based on LP utilization, determined by the earned trading fee share.

Users who maintain a tighter range could possibly earn more Blaster pre-token rewards than their position can generate, while users with full-range positions, wide ranges, or out-of-range positions might receive fewer Blaster pre-tokens or none at all.

Considerations

While maintaining a tighter range position can lead to higher rewards, it also has a higher potential to become inactive due to price movements, requiring more active management. Inactive (out-of-range) positions do not earn any trading fees, Blaster rewards, or Blast native yield.