Blueshift is a decentralized exchange (DEX) and a new-generation crypto asset management protocol based on liquidity portfolios. Blueshift protocol is based on an elaborated Automated Market Maker (AMM) algorithm that provides exchange price calculations and controls liquidity flows.
Unlike traditional AMM protocols, Blueshift uses portfolios instead of pairs to hold liquidity. Lists of accepted tokens in portfolios are managed by the community of protocol users. Liquidity providers can invest in any of these tokens and acquire shares of the whole token portfolio. With this, LPs agree that their tokens can be freely exchanged within the portfolio so that the actual owned assets will vary over time. To swap tokens within a portfolio, Blueshift creates virtual pairs taking the required liquidity from the portfolio. These pairs are not persistent. After the swap, the virtual pair is erased and the resulting price is stored in Blueshift’s internal price oracle.
Liquidity portfolios and virtual pairs create numerous advantages for liquidity providers and traders. Among them are low price slippage, low impermanent loss, and decentralized portfolio management - the possibility to define token balances in portfolios via a community-driven process.