Mandarin Version:
<aside> 💡 BlablaBlock develop smart contracts to build its trading validation mechanism and the associated DeFi ecosystem.
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bex is BlablaBlock's zero-slippage $BLA token swap protocol, and its liquidity is provided by the BlablaBlock team.
Users swap $BLA tokens with USDT through the smart contract bex. The price of $BLA tokens is determined by pegging to the total value of assets in the treasury using blockchain oracle. The bex smart contract fetches the current $BLA token price from our oracle smart contract.
The token swap model of bex is not the Automated Market Maker (AMM) model used by decentralized exchanges like Uniswap or Curve. Instead, it developed to fit BlablaBlock’s mechanism allows for zero-slippage token swap in any liquidity scenario, ensuring that the $BLA token price remains stably pegged to the treasury assets.
The price oracle developed by BlablaBlock is designed by utilizing Chainlink technology, which has a well-established presence in blockchain technology. This design strikes a balance between price accuracy and update costs. It also prevents the occurrence of slippage issues that might arise in larger-scale $BLA token exchanges, providing $BLA users with a stable and consistently updated token price.
Whenever the deviation between the treasury asset value and the $BLA token value exceeds 0.5%, the price oracle developed by BlablaBlock automatically updates the quotation.
The calculation of the $BLA token price is derived by pegging it to the treasury value:
$$ Price = \cfrac{TreasuryValue} {TokenOutstanding} $$
ex. there are 1,000 $BLA tokens in total circulation. The total value of cryptocurrencies in the treasury (BTC, ETH, USDT, USDC, and all other cryptocurrencies) is $1,000 USD. In this case, the price of one $BLA token is $1 USD (calculated as $1,000 divided by 1,000 tokens). When the cryptocurrency market fluctuates, and the total value of treasury assets increases to $1,050 USD, the deviation exceeds 0.5%, and the price oracle will activate and update the token swap price of $BLA tokens to $1.05 USD. Conversely, if the cryptocurrency market declines, the oracle will trigger and update the quotation again.
Regarding the term "Oracle," it is named after the oracle machine envisioned by Alan Turing as part of a theoretical computer architecture. It does not possess predictive or fortune-telling abilities and might be easily misunderstood in a Chinese context. In the blockchain world, an Oracle refers to a smart contract that continuously provides reliable off-chain information to the blockchain. You can learn more about Turing machines on Wikipedia and Ethereum's perspective on oracles here.
bliq is an interest-free lending protocol built on top of $BLA. $BLA token holders can borrow USDT in an interest-free and no maturity manner. This significantly enhances the capital efficiency of holding $BLA and create novel investment experiences compare to conventional world.