Blast Hub

Coming soon

Blast Hub, innovatively designed by Nazca, is an isolated lending market dedicated exclusively to supporting Blast native projects. This distinct hub and spoke model stands apart from traditional single cross-collateral pool systems prevalent in many DeFi protocols.

Key Features

• Risk Management: Isolated pools significantly mitigate the risk of draining the total value locked (TVL) in a single attack, a vulnerability common in single cross-collateral pools.

• Asset Listing: This approach allows Nazca to diversify asset listings without increasing the risk exposure of the entire protocol’s TVL.

• Inter-Pool Transactions: To overcome the limitation of collateralizing and borrowing across different isolated pools, USDB is introduced as a common currency, facilitating seamless transactions across all isolated pools in Blast Hub.

• Customizable Parameters: Isolated pools offer adjustable reserve factors and liquidation thresholds, providing users with higher loan-to-value (LTV) ratios, greater leverage, and the potential for higher APYs.

Advantages Over Traditional Models

• Blast Hub’s isolated pool structure significantly reduces systemic risks compared to single cross-collateral pools.

• Support for Native Projects: Tailored to strengthen the Blast ecosystem, Blast Hub enhances native project tokens with improved utility, capital efficiency, and liquidity.

• Market Growth: It plays a pivotal role in transforming the Blast ecosystem into a more dynamic and robust market.

Aspect	Single Cross-collateral Pool	Isolated Pools
Structure	All assets stored in single pool, users can deposit supported assets to earn interest or borrow.	Pools run in segregated environments, each with set of supported assets and parameters
Security	In case of irregular price movements or malicious acts, the entire TVL will be at risk.	Risks or price irregularities are contained in each isolated pools, affecting a smaller amount of asset
Customizability	Lack of customizability on money market parameters.	Each different pool contains different assets and lending parameters. Users can invest according to their risk appetite.
Asset Availability	Listings only include blue chip tokens with deep liquidity.	Isolated pools could hold more volatile tokens and expand offerings to users.

Towards a Liquidity Hub on Blast

This initiative represents a significant milestone as Nazca builds towards establishing the liquidity hub of the Blast ecosystem. Blast Hub is not just an innovation in isolated lending markets; it's a foundational step in creating a cohesive, efficient, and secure financial ecosystem. This platform is envisioned to be the cornerstone in the liquidity strategy of the Blast ecosystem, paving the way for future developments and integrations that will further enrich the community and its offerings.