Blurb Finance: One-Click Access to Maximum Yield

Blurb Finance allows liquidity providers (LPs) to deposit with a single click that it automatically distributes across various liquidity strategies to ensure the highest possible APY for the user.

You Invest; Blurb Will Do the Rest

Blurb provides users with a simpler interface where they can choose any chain, deposit any token, and have the receipt of their deposit on any chain they choose.

Instead of deciding which LP strategies are performing well, choosing where they can get the highest APRs or APYs, monitoring the performance, and tweaking their LP positions with changing market conditions all the time, users will only have to deposit.

The Blurb algorithm will split this deposit and invest in the best-performing (high revenue-generating) strategies. It will keep the position in range and rebalance when necessary to avoid IL as much as possible.

Users will be able to see the strategies in which their share is present and will be notified whenever their positions are rebalanced.

Key Components

1. Simplified UI

Blurb provides an intuitive interface, allowing users to select any blockchain and deposit any token.

2. Cross-Chain Deposit Receipt

Users receive a deposit receipt on the chain of their choice, irrespective of the token deposited.

3. Automated Strategy Allocation

The Blurb algorithm autonomously allocates deposits across the most profitable (high revenue-generating) strategies.

4. Active Strategy Management and Rebalancing

The system continuously monitors the performance of investments, rebalancing positions as necessary to minimize impermanent loss (IL).

5. Points and Rewards Stacking

Users will earn the revenue generated from their deposit and the rewards and points on top of it. Merkl-supported vaults grant users additional rewards along with chain-specific points like Blast points or Scroll points.

Problems Catered by Blurb Finance

The existing ALM platforms require users to actively observe and manage their LP positions. This poses extra challenges to passive LPs. Even if they deposit and forget about it, they will have to bear IL on their deposit due to the active rebalancing mechanism of the ALM managing their LP position.

As a passive LP, users face the following challenges that Blurb is catering to:

1. Passive LPing Isn’t Really Passive

After depositing into a pool users need to observe how their positions are performing concerning the market to ensure that they keep getting good returns.

With Blurb, users will only have to select a chain, select the token to be deposited, the chain on which they will have the receipt, and deposit the funds. After this, Blurb will take care of everything. It will autonomously allocate deposits across the most profitable strategies and switch positions at the right time.

2. Loss of Funds Due to Unchecked IL

The ALMs actively rebalance the positions whenever the position goes out of range. This keeps incurring impermanent loss and a significant decrease from the initial deposit value if kept unchecked for a long time.

Blurb works by a trailing rebalancing mechanism. Instead of actively rebalancing the position as soon as it goes out of range, it keeps trailing the price. If the price comes back in range, it will not rebalance and save it from IL. By avoiding constant and unnecessary rebalancing, the change from the initial deposit is very small and can be covered by fee compounding.

3. Stagnant LP Positions

Users tend to switch positions from pool to pool depending on the performance of the pools and APRs. Choosing the right pools is a tedious process and requires constant monitoring by the LPs.

Blurb works by allocating the funds to the most profitable pools. Users don’t need to worry about constantly monitoring their positions. If, for any reason, the current pools are not as profitable, Blurb's algorithm will automatically switch their positions to the pools with better returns.

4. Analysis Paralysis

The LPs have to make many right decisions when depositing funds that align with their financial goals. From selecting the chain and profitable pools with maximum APYs to avoiding IL, deciding when to rebalance, and setting an exit strategy. All of this contributes to the users’ decision fatigue.

Blurb prioritizes users’ ease by deciding on all the critical points on their behalf while keeping their positions profitable at the same time. Users will be able to see the pools in which they have their shares and will be notified every time the rebalance happens. They will also be able to see the fee generated and points and rewards earned on top of the fee.

User Flow

1. Select the chain on which you want to deposit after connecting your wallet.
2. Select the chain on which you want your deposit’s receipt.
3. Select the token.
4. Enter the amount and deposit.

Users can see the list of strategies in which their deposit will be split, the APRs, and TVL. Consolidated APY is also shown.

Supported Ecosystems:

Ethereum and other L2s.

Conclusion

In conclusion, Blurb Finance offers a streamlined and intelligent solution for liquidity providers looking to maximize their returns without the complexities of active management. By automating the allocation of deposits across the most profitable strategies and minimizing the risks of impermanent loss, Blurb allows users to passively invest with confidence.