Connecting the Algorand and Cardano Ecosystems Through Milkomeda and Blueshift
You may have recently read about the upcoming launch of the Milkomeda Algorand A1 Rollup (familiarize yourself with how to use it). This time we’re here to share some exciting news about a unique innovation that the Milkomeda Foundation and Blueshift are bringing to the blockchain world.
The Blueshift protocol is built on top of the Milkomeda Cardano C1 sidechain, meaning that their unique DEX model is already accessible to the Cardano ecosystem. Now Blueshift and Milkomeda have partnered together for Blueshift to bring this DEX model to the Algorand ecosystem on Milkomeda’s A1 Rollup and, what’s more, Blueshift is planning to connect these two DEXs to enable users to access liquidity and make trades across these two chains!
Fundamentally, Cardano, running a UTxO model, and Algorand, running an account-based model on the Algorand Virtual Machine (AVM), are two very different blockchain that cannot communicate with each other or exchange assets. So what are Milkomeda and Blueshift doing to bring the blockchain world its first multi-chain, portfolio liquidity based DEX?
What is Milkomeda?
Milkomeda is a protocol designed to improve blockchain interoperability by delivering Ethereum Virtual Machine (EVM) capabilities to non-EVM blockchains, like Cardano and Algorand. This is accomplished by building layer 2 (L2) scaling solutions like sidechains and rollups, on which the EVM operates, and then connecting these L2s to non-EVM blockchains, layer 1s (L1s), via a permission-less bridge. Currently, Milkomeda operates a sidechain on Cardano and will soon operate the aforementioned A1 Rollup on top of Algorand.
Bringing EVM capabilities to non-EVM chains exposes these chains to developers writing in the world’s most popular smart contracting language, Solidity. This offers the mutual benefit of enabling these developers to launch and expose their dApps to the communities on these chains, with minimum edits to the codebase, while simultaneously providing these communities with a wider variety of unique dApps: DeFi, DAOs, Games, etc; to interact with.
Users of these interoperability solutions use locked L1 assets -e.g. ALGOs, ADA, Cardano native tokens, and Algorand Standard Assets- to interact with the dApps, e.g.Blueshift, built on top of these L2s. Engineering blockchain interoperability in this manner, by simply locking and mirroring L1 assets, creates a straightforward user experience that does not require the purchase of any new tokens. Such ease of use helps to drive greater adoption of these interoperability solutions and blockchain technology in general.
What is Blueshift?
Blueshift is a cutting-edge decentralized exchange that uses portfolio pools instead of regularly traded liquidity pairs. These portfolios are similar to Exchange-Traded Funds, made up of high-performing tokens and projects, where the value and performance of the entire portfolio create the value behind pooling assets rather than a single pair.
Many innovations make using Blueshift easier and more cost-effective than current DEXes in the crypto space.
We are thrilled to work with Milkomeda, Multichain, and Algorand’s ecosystem key players and become a major Algorand ecosystem catalyst. Blueshift will introduce its novel liquidity portfolio management protocol and natively connect Algorand with Cardano, bringing new liquidity and enabling native cross-chain aggregate swaps. Blueshift will deliver new assets to both chains, increased capital efficiency, lower price slippage, and superior usability.
– Said Igor Mikhalev, the Founding Partner at Blueshift.
Swaps in Blueshift portfolios are easier and more reliable because of the ability to form virtual pairs within a portfolio using deep liquidity to reduce slippage and impermanent loss.
In addition, the various AMM algorithms for different tokens may be placed in distinct sets within the same portfolio to enable dynamic combinations that address price slippage.
Blueshift can also modify or remove a single token type at a time, making the DEX even simpler to use.
Blueshift has also developed its unique smart minting system and staking mechanism, allowing users to earn rewards for simply holding assets in their portfolio. This incentivizes users to remain active on the platform and helps increase the platform’s overall liquidity.
What Does This Mean for the Algorand Ecosystem?
As Milkomeda grows and implements an EVM-based, A1 Rollup on Algorand, this enables Blueshift to also port their protocol over to this interoperability solution and expose their unique, portfolio-based DEX to the Algorand community. This allows projects in the Algorand ecosystem, and members of the Algorand community, to access portfolio-based liquidity for their tokens and take advantage of the benefits that BlueShift offers.
Blueshift is one of the current DEXes that has innovated by bringing multiple unique features like the portfolio management tool which allow for the implementation of more refined strategies among DEXes. Blueshift continues to innovate and I’m particularly excited to see their new cross-chain portfolio feature between Algorand and Cardano — two ecosystems that shared a lot of similarities in terms of strong research focus.
– Said Nico Arqueros, Co-Founder and Core Developer (Consultant) at Milkomeda.
Operating DEXs on both of Milkomeda’s interoperability solutions -the C1 sidechain on Cardano and the A1 Rollup on Algorand-, Blueshift will be in the unique position to offer the first ever cross-chain, portfolio DEX in the blockchain ecosystem. This allows users on Algorand and Cardano to perform swaps between the two blockchains, access aggregated cross-chain liquidity, and access tokens on both of these thriving ecosystems. As the platform develops, it will provide hassle-free cross-chain swaps without the need for additional bridges.
Going cross-chain is a major trend in DeFi nowadays. While numerous protocols are offering bridging and cross-chain swap features, Blueshift aims at making a step further — towards true cross-chain liquidity provisioning. Blueshift’s cross-chain portfolios will allow providing liquidity on one supported blockchain and making it immediately available for swaps on all supported blockchains. Thus, making it possible to use ADA and Cardano native tokens liquidity, bridged by Milkomeda, in swaps with ALGO and other tokens from the Algorand ecosystem. Cross-chain portfolios will store a consistent view of aggregated liquidity in the background, allowing simple user experience and high capital efficiency thanks to Blueshift’s virtual pair mechanics.
– Said Igor Struchkov, the CTO at Blueshift.
To learn more about both Milkomeda and Blueshift use the links below and be sure to follow both sets of social channels to get the latest updates from both Milkomeda and Blueshift.
Learn more about Milkomeda:
Learn more about Blueshift: