Thruster Finance: The Yield-First DEX for the Blast Ecosystem

Introduction to Thruster Finance

Thruster Finance is a decentralized exchange (DEX) built on the Blast ecosystem that focuses on yield optimization for liquidity providers (LPs). The platform has raised $7.5 million from notable investors and is set to launch its native token, THRUST. Thruster aims to integrate with various protocols and LPs within the Blast ecosystem, enhancing yield capture for users through features like the “Credits” system, which rewards swaps and liquidity provision. With a concentrated liquidity model inspired by Uniswap v3, Thruster enables LPs to customize their positions and earn additional incentives from partner programs. As a key player in the Blast ecosystem, Thruster Finance contributes to the overall growth of DeFi by onboarding new users and providing tools for yield optimization.

Funding and Development

Investment and Financial Backing

Thruster Finance has successfully raised $7.5 million in funding from notable investors, including Pantera Capital and OKX Ventures. This significant investment demonstrates the confidence that prominent players in the crypto industry have in Thruster’s potential to disrupt the decentralized exchange (DEX) landscape within the Blast ecosystem.

Pantera Capital, a leading blockchain investment firm, has a proven track record of identifying promising projects early on and supporting their growth. OKX Ventures, the investment arm of the popular cryptocurrency exchange OKX, has also recognized Thruster’s innovative approach to yield optimization and liquidity provision. The involvement of these investors not only provides Thruster with the necessary capital to accelerate its development but also brings valuable expertise and connections to the project.

Launch of THRUST Token

Thruster Finance has confirmed that it will launch its native token, THRUST, in the near future. While the exact launch details have not been disclosed, the upcoming token release is expected to have a significant impact on the platform’s ecosystem and user engagement. The THRUST token will likely serve as a governance token, allowing holders to participate in the decision-making process and shape the future direction of Thruster Finance. Additionally, the token may be used for staking, providing liquidity, or earning rewards, further incentivizing users to actively participate in the platform’s growth. The launch of THRUST is also expected to attract more users to the Thruster ecosystem, as the token may be distributed through airdrops or other incentive programs. This influx of new users could lead to increased liquidity, trading volume, and overall activity on the platform, solidifying Thruster’s position as a leading DEX within the Blast ecosystem.

Key Features of Thruster Finance

A. Yield Optimization Tools

1. Liquidity Provider Tools for Better Yield Capture
   

   Thruster Finance provides a suite of tools designed to enhance yield capture for liquidity providers (LPs). These tools enable LPs to engage in various strategies that maximize their returns by optimizing the allocation of their assets within the platform. By integrating with top protocols and utilizing Blast-native yield mechanisms, Thruster allows LPs to earn rewards not only from trading fees but also from additional yield opportunities generated through its ecosystem partnerships.

2. Introduction of the “Credits” System
   

   The “Credits” system is a key feature that incentivizes user engagement on the Thruster platform. Users earn credits by participating in swaps and providing liquidity. This system encourages active participation, as credits can accumulate based on the volume of transactions and liquidity supplied.

   • Earning Credits Through Swaps and Liquidity Provision: Each time a user makes a swap or adds liquidity to a pool, they receive credits proportional to their activity. This not only rewards frequent users but also helps to foster a vibrant trading environment on the platform.
   • Referral Bonuses for Additional Credits: Users can also earn extra credits by referring others to the platform. This referral system incentivizes existing users to bring new participants into the ecosystem, further enhancing liquidity and trading volume, which benefits all users through improved yields.

B. Concentrated Liquidity Model

1. Explanation of Concentrated Liquidity Inspired by Uniswap v3
   

   Thruster Finance uses a concentrated liquidity model similar to Uniswap v3, allowing liquidity providers to allocate capital within specific price ranges. This model differs from traditional liquidity pools, which spread liquidity across all price points. Consequently, LPs can concentrate their investments where trading occurs most frequently, optimizing their returns.

2. Advantages for Liquidity Providers and Traders
   

   The concentrated liquidity model offers significant advantages for both LPs and traders. For LPs, it allows for more efficient use of capital, potentially leading to higher returns on investment as they can earn fees from trades that occur within their chosen price ranges. For traders, this model can result in tighter spreads and better price execution, as there is more liquidity available at the prices they are interested in.

3. Flexibility and Customization of Liquidity
   

   Thruster’s model provides LPs with the flexibility to customize their liquidity positions according to their market outlook and risk tolerance. They can choose the price ranges in which to provide liquidity, allowing for tailored strategies that align with their investment goals. This level of customization is a significant enhancement over traditional DEX models, enabling users to optimize their trading and investment strategies effectively.

Overall, Thruster Finance’s key features are designed to create a user-friendly and rewarding environment for both liquidity providers and traders, ensuring that participants can maximize their yields and engage actively within the Blast ecosystem.

User Engagement and Incentives

A. Step-by-Step Guide to Participation

1. Connecting Wallets and Changing Networks
   

   To participate in Thruster Finance, users need to connect their wallets to the platform. This typically involves selecting their preferred wallet from a list of supported options and following the prompts to grant access. Users may also need to change their network to the Blast ecosystem in their wallet settings to interact with Thruster.

2. Bridging Assets to the Blast Network
   

   If users want to trade or provide liquidity on Thruster, they need to ensure they have the necessary assets on the Blast network. This may require bridging tokens from other networks to Blast using a cross-chain bridge. Thruster provides guidance and links to help users navigate the bridging process smoothly.

3. Making Swaps and Providing Liquidity
   

   Once users have their assets on the Blast network and their wallets connected, they can start engaging with Thruster Finance. The platform offers an intuitive interface for making swaps between different tokens and providing liquidity to earn trading fees and other incentives. Users can easily navigate to the swap or pool sections to execute their desired actions.

B. Earning and Utilizing Credits

1. How Credits Can Lead to Potential Airdrops
   

   Thruster Finance has introduced a “Credits” system that rewards users for their contributions to the platform. These credits can be earned through activities such as making swaps, providing liquidity, and referring others to Thruster. As users accumulate credits, they become eligible for potential airdrops of the THRUST token upon its launch, allowing them to share in the future success of the protocol.

2. Sharing Credits Through Referrals
   

   Thruster encourages users to share the platform with others by offering referral bonuses. Users can earn additional credits by inviting friends and family to join Thruster and engage with the platform. This referral system helps to grow the Thruster community while rewarding loyal users for their efforts.

Distribution Mechanisms

A. LP Distribution of Blast Gold

1. Criteria for Earning Blast Gold
   

   Blast Gold is distributed to liquidity providers (LPs) and decentralized applications (dApps) on the Blast network every 2-3 weeks, based on specific performance criteria. The distribution aims to reward activities that promote the long-term health and growth of the ecosystem. The key criteria for earning Blast Gold include:

   • Maker Volume: LPs earn Blast Gold based on their limit order fills, with a focus on orders that remain within a ±4% range of the mark price for extended periods.
   • AMM LPs: Users providing liquidity to any trading pairs on the Blast network earn Blast Gold proportional to the fees generated from their liquidity positions. This incentivizes LPs to maintain capital-efficient positions that are frequently utilized in trades.
   • Miscellaneous Activities: Additional distributions may occur based on various activities, such as trading competitions or bonuses for specific user groups, which are announced in advance.

2. Time-Weighted TVL, Total Volume, and Fees Generated
   

   The distribution of Blast Gold is calculated using a weighted model that considers three main inputs over a defined period:

   • Time-Weighted Total Value Locked (TVL): This metric evaluates the amount of liquidity provided by users over time, rewarding those who maintain their positions longer.

B. Community Pool and Governance

1. Future Plans for Decentralization and Governance
   

   Future plans include enabling community members to participate in decision-making processes regarding the distribution of Blast Gold and other incentives. This shift aims to empower users and align the platform’s direction with the interests of its community, fostering a sense of ownership and involvement among participants.

2. Use of Fees for Community Benefits and Loyalty
   

   The fees generated from trading and liquidity provision on Thruster will benefit the community and enhance user loyalty. Specifically, a portion of these fees will fund community initiatives, reward loyal users, and support new projects. Thruster reinvests fees into community-driven efforts to create a sustainable and engaged user base. This ensures all participants share in the platform’s success and growth.

Partnerships and Ecosystem Integration

A. Collaborations with Other Protocols

1. Partner Protocols That Support Thruster LP Tokens
   

   Thruster Finance has established collaborations with several protocols that enhance the utility of its liquidity provider (LP) tokens. Notable partners include:

   • Hyperlock: Often referred to as the “Convex” of Thruster, Hyperlock enables LPs to optimize their yield while allowing decentralized autonomous organizations (DAOs) to enhance liquidity for Blast-native assets.
   • Particle: This protocol leverages Thruster’s concentrated liquidity model to introduce on-chain leverage for fungible assets, thereby increasing the utility and yield potential of Thruster LP tokens.
   • Juice: A cross-margin DeFi application that integrates Thruster’s LP tokens, Juice offers innovative lending capabilities and utilizes Blast’s native tokens to maximize yield.

2. Incentives from Partner Programs
   

   Users can earn additional incentives by depositing Thruster LP tokens into partner protocols. These incentives may include:

   • Blast Points: Users can earn points that accrue over time based on their liquidity contributions.
   • Blast Gold: This is distributed based on performance metrics such as TVL and trading volume, rewarding users for their participation and engagement.
   • Partner-Specific Rewards: Each partner protocol may offer unique incentives that can enhance returns for users who utilize Thruster LP tokens within their ecosystems. This multi-layered incentive structure makes providing liquidity on Thruster particularly attractive.

B. Role in the Blast Ecosystem

1. Contribution to the Overall Growth of the Blast Ecosystem
   

   Thruster Finance is crucial for the growth of the Blast ecosystem, providing a high-performance decentralized exchange (DEX) for Blast-native teams and tokens. By integrating various DeFi solutions, Thruster attracts more users and projects to the Blast network. Moreover, its yield-first approach encourages liquidity provision and trading, contributing to the ecosystem’s overall health and sustainability.

2. Strategies to Onboard New Users and Enhance Engagement
   

   Thruster employs several strategies to onboard new users and enhance engagement within the Blast ecosystem:

   • Educational Resources: Thruster provides resources and tutorials to help users understand the benefits of participating in the ecosystem, including how to maximize yields and utilize LP tokens effectively.
   • Incentive Programs: The combination of Blast Points, Blast Gold, and partner-specific rewards creates a compelling incentive structure that attracts both new and experienced users to engage with the platform.
   • Community Engagement:
     Thruster actively engages its community through social media, forums, and events. This fosters a sense of belonging and encourages users to contribute to the platform’s growth.

Conclusion

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FAQs

1. What is Thruster Finance?

2. How do I participate in Thruster Finance?

To participate, you need to connect a compatible wallet, switch to the Blast network, bridge your assets to the Blast ecosystem, and then you can start making swaps or providing liquidity.

3. What is the “Credits” system?

The “Credits” system rewards users for their activity on the platform, such as making swaps and providing liquidity. Users can earn credits that may lead to potential airdrops of the THRUST token and can also gain additional credits through referrals.

4. How is Blast Gold distributed to liquidity providers?

Blast Gold is distributed to LPs based on criteria such as maker volume, time-weighted total value locked (TVL), total trading volume, and fees generated. This multi-faceted approach ensures fair rewards for LP contributions.

5. What are the benefits of using Thruster LP tokens with partner protocols?

6. What are the future plans for Thruster Finance?