Omniyield

In 2021, the trading volume of cryptocurrency derivatives surpassed spot trading and continued to grow rapidly throughout the year, with the majority of derivative trading still originating from centralized exchanges (CEX). Following dYdX, a series of perpetual futures protocols emerged in the market, adopting different approaches to address liquidity issues (implying trading depth) but also facing some common challenges.

1. Liquidity Fragmentation

With the introduction of each new derivative protocol, a mechanism must be designed to capture liquidity in the market to meet the fundamental depth requirements of derivative trading. The significant differences between protocols prevent the realization of the liquidity's combinational advantages, while the vAMM (virtual automated market maker) model circumvents actual liquidity but also brings challenges of high slippage and pricing inefficiency.

1. Low Utilization Efficiency of LP Funds

In most derivative protocols, liquidity providers generally rely on trading fees from derivatives to generate income. However, with the increasing trend in the DeFi space towards greater efficiency in capital utilization (uni v3 liquidity aggregation being a typical example), there is evidently a need for more ways to enhance the efficiency of capital utilization.

1. LP Risk

In non-order book situations, LPs face higher risks of losses in one-sided markets, despite efforts by various protocols to compensate through liquidity incentives. However, this does not fully address the problem.To address the challenges faced by perpetual futures protocols, Allspark innovatively introduces the concept of Omniyield. The following are the details.LPs can supply liquidity across various chains and generate omniyield with a single click. The Allspark Protocol facilitates the integration of these assets into Blast, endowing LPs with native returns and protocol rewards that are unavailable on their original chains.In this capacity, Allspark functions akin to an interest rate gateway, aggregating assets from diverse chains into Blast while distributing native returns to users across different chains, ultimately achieving Omniyield based on Blast's native yield.

In fact, users only need to follow these steps to complete the process:

Step 1: Users purchase and stake LP tokens into the Allspark protocol, under chain abstraction.

Step 2: Utilize Allspark's message distribution service to establish cross-chain payment gateways and cross-chain message routing to the Blast network.

Step 3: Connected applications seamlessly retrieve earnings from the Blast yield layer without any awareness.