Welcome to Bloom! In our mission to make perps trading and liquidity providing (LPing) as easy as possible, we’re kicking off a new educational series, starting with “Liquidity Providing 101.”

Quick Start - LPing

Getting started with depositing on Bloom is as easy as going to the “Vault” tab on our dApp, accessible at bloom.trading/vault. USDB, Blast’s native stablecoin, is used as collateral in our vaults.

1. Login with your selected EOA: Click the login button on the top right-hand of the page and connect with your EOA of choice (MetaMask, Rabby, Coinbase Wallet, etc). Ensure your wallet is connected to Blast. If you aren’t on Blast, you will need to manually switch networks. You can do this by clicking the “Switch Network” button on the top-middle of the page.

2. Select the Deposit/Withdraw tab: Input the amount of USDB that you would like to deposit and receive bUSDB in return. USDB is not necessarily 1:1 to bUSDB, so please check how much bUSDB you’ll receive carefully! Here, you can also see projected APY and any boosts on fees, Blast Gold, and Bloom points.

3. Locking your bUSDB: If you’d like to lock your bUSDB for boosted rewards, navigate to the Lock/Unlock tab. Input the amount of bUSDB you’d like to lock, and adjust the lock period slider (30 days - 180 days). You may lock up to 180 days in order to receive up to a 4x boost on fees, Blast Gold, and Bloom points. Please note that unlocking early will incur a 10% fee.

Vault Overview

LPs can deposit USDB into our vault, and get back bUSDB, an ERC-4626 token representing their ownership in the vault. bUSDB auto-compounds over time from fees, and automatically accrues Blast developer points, and Bloom points. bUSDB is not necessarily 1:1 to USDB as it is a share price representing ownership in the vault - we’ll dive into how share price works further below!

Users can deposit USDB to earn yield from market-making, Blast Points and Bloom Gold, and Bloom points. Aligning with long-term liquidity in our protocol and locking your bUSDB will grant you additional yield, Blast Gold, and Bloom points - up to 4x more based on the duration of your lock.

For more information on locking and boosts as an LP, check out our documentation.

Upon navigating to the Vault page, you’ll see 3 separate tabs:

1. Overview: A general overview of our vaults, with various statistics including the current bUSDB share price, current TVL, the supply of bUSDB, cumulative earnings, and projected APY (trading fees and rebasing yield) based on data from the past 7 days.

   Additionally, the Overview page also includes your LP Portfolio, where you can see the value of your USDB deposited, any bUSDB you may have locked, as well as your LP Rewards - Unclaimed from locking rewards include extra fee rewards that you receive from locking liquidity, and Total earnings (rewards earned from native yields, auto-compounding, and locking rewards).

2. Deposit/Withdraw: Deposit/withdraw your unlocked bUSDB. You can use the calculator input to see how much bUSDB you’ll receive, as well as projected APY, and any boosts on fees, Blast Gold, and Bloom points. Withdrawing your unlocked capital does not incur a fee. Please note that as bUSDB is received in exchange for depositing, withdrawing will effectively swap your bUSDB for the current share price value.

3. Lock/Unlock: On this page, you can lock your bUSDB to multiply your points and rewards. Input the amount of bUSDB you wish to lock and adjust the lock period slider to see your projected APR and any boosts on fees, Blast Gold, and Bloom points. You can lock up to 180 days in order to receive a 4x boost on market-making yield, Blast Gold, and Bloom points. Withdrawing locked capital before your lock expires will incur a 10% fee. Choose wisely before locking capital!

What is bUSDB?

As mentioned previously, bUSDB is an auto-compounding ERC-4626 token representing an LP’s ownership in the vault. As bUSDB’s value is represented by a share price, it can fluctuate up or down based on yield, fees, and trader PnL. You can monitor the price of bUSDB by either navigating to our Vault Overview page, or on our analytics page, where you can see the historical performance of bUSDB.

Is there risk?

Depositing into any protocol, including Bloom, does incur risk as our LPs act as the counterparty to our traders - high-level, when traders lose, their money is sent to the vault, and when traders win, their winnings are taken from the vault. This can cause the share price of bUSDB to decrease. However, we have several mechanisms to ensure that our vaults are delta-neutral, including dynamic funding rates to incentivize balancing open-interest. Our LPs are also currently earning 70% of all protocol fees, among the highest revenue share across any perpetuals platform in DeFi.

Finally, all liquidity providers on Bloom are eligible for any developer airdrop (Gold) that we receive from Blast. While simply depositing into Bloom’s vaults will entitle you to 1x fees, Blast Gold, and Bloom points, locking your capital can multiply your points and rewards for up to a 4x boost.

For additional information on Bloom, please read our documentation and stay updated with our community on our Discord. Happy LPing on Bloom!