Bluefin was born out of a vision to push the limits of DeFi by making DeFi faster, less expensive, more accessible and technologically robust than ever before. The platform aims to onboard millions of users to open finance in the next five years and empower everyone connected to the Internet with frictionless access to markets.
In just over a decade since their inception, digital assets have reached a capitalization of over two trillion dollars, a fifth of the most treasured precious metal for millennia - gold. We believe this trend will continue to accelerate as DeFi becomes faster and more expressive and traditional assets start to have digital representations. Bluefin is bridging the best of CeFi with the best of DeFi to advance derivatives trading, the largest market by trading volume. The latency, liquidity, and low cost of CeFi combined with the transparency, composability, and permissionless nature of DeFi make Bluefin a convincing alternative to existing centralized exchanges.
More Performant DeFi: Sub-Second Settlement
Financial services in the traditional world appear smooth because they process on timescales comparable to the limit of human perception. The time from order creation to on-chain settlement on Bluefin takes 400 - 800ms in ideal conditions, which appears instant for all human purposes and rivals the latencies in traditional finance. The tools we are building will be available for use to other projects within Polkadot and Moonbeam ecosystems. We will continue to push forward the performance and contribute to advancing blockchain scalability.
Equity Share: Value Flow to Traders
Not only are fees on Bluefin competitive with those on centralized exchanges, but they will also be a part of the on-chain smart contract design. In the future, the fees collected by the protocol can be used to reward the most valuable traders utilizing the protocol.
Liquidity: Supported by Leading Market-Makers
Traditional high-frequency and market-making strategies provide liquid, efficient markets for almost every tradable asset under the sun. Several of the leading market-makers in the industry will quote markets on Bluefin with tight bid-ask spreads to allow for opening and exiting positions with minimal slippage. Bluefin aims to provide supreme liquidity for all assets voted-in by the governing stakeholders.
Access: Empowering Everyone to Make Markets
Automated trading and market-making strategies are the backbones of liquid and efficient markets. To strengthen the markets on Bluefin, deploying automated trading strategies will be made as easy as possible, even for non-technical users. To start, the integration with Hummingbot will allow traders to create and run high-frequency, arbitrage, and market-making strategies on the Bluefin DEX. On top of that, users will be able to deploy capital into plug-and-play market-making bots. Lastly, Bluefin will open-source its own atomic market-making algorithms to make access to markets even more effortless.
Security: Thoroughly-Tested Non-Custodial Contracts
Security is not only a priority but a prerequisite to building a performant, user-friendly DEX. We invest significant effort into producing sound code and frequently review it to ensure quality. While we believe we created resilient and reliable products, we also partnered with the best security firms in the industry to audit our work. The non-custodial smart contracts underpinning Bluefin will be made open-source to allow anyone to audit the code, infer the contract logic and understand the inner working of the exchange. The Bluefin platform’s security will benefit from the shared security of the Polkadot Relay Chain and the AnyTrust guarantee when rollup assertions are submitted to the Moonbeam chain; as long as even one validator is honest, the liveness of the rollup layer is preserved.
Decentralization: Managed by the DAO
In place of company management staff, the Bluefin Decentralized Autonomous Organization (DAO) will shape the future of Bluefin. Adding new markets, designing the fee structure, and managing the treasury will be some of the critical responsibilities of the DAO.
End-to-end Decentralisation (~12-16 months) Bluefin is going to unveil one of the first fully on-chain trade mining programs. The exchange smart contracts will make Bluefin entirely non-custodial from Day One. Over the next 12-16 months, we will progressively decentralise the order-matching engine to make the platform fully decentralised.