Original | Odaily Planet Daily (@OdailyChina)

Author｜Nan Zhi (@Assassin_Malvo)

Yesterday, BNB Chain announced the winners of the first BNB Incubation Alliance event jointly organized with Binance Labs. They are Payman, BalloonDogs, and Blackwing. These three projects will be admitted to Binance's MVB program and receive funding from BNB Chain, as well as potential investment opportunities from Binance Labs.

The first two projects are still in the early conceptual stage of the white paper, and the Blackwing white paper has clearly stated that there will be token airdrops, so Odaily will analyze the protocol and interactions of Blackwing in this article.

Blackwing Interpretation

Protocol Definition

There are two official definitions of the Blackwing protocol, one is a "modern DEX abstraction layer" and the other is a "modular blockchain." Blackwing allows users to achieve liquidation-free leveraged trading of long-tail assets through a structure called "infinite pools." The long-tail assets here refer to Meme tokens such as WIF and BONK. Blackwing said that Meme tokens have strong growth potential, but it is difficult for users to obtain leveraged funds and trading channels for such tokens. Therefore, the current core business is simply a leveraged trading platform for Meme tokens.

Financing

Blackwing completed a new round of financing of US$4.5 million in March this year, led by Hashed and Gumi Cryptos, and participated by Aptos, Caladan, Kyber Ventures, Saison Capital, Ninety Eight, K 300 Ventures, South Park Commons and others.

Functional Analysis

Blackwing provides liquidation-free leveraged trading of any token. First of all, it should be noted that "liquidation free" here does not mean that leveraged trading will not be liquidated, but that traditional selling and liquidation behavior (selling assets after reaching the liquidation line and repaying the loan amount together with the margin) is not carried out, and settlement is carried out through a unique mechanism.

Taking leveraged long orders as an example, the Blackwing mechanism is that users provide stablecoin assets (such as USDC), pay handling fees to the fund pool and borrow USDC, then convert part of the USDC into the tokens they want to buy (such as ETH), and finally combine the two into an AMM-like LP. Blackwing calls this LP "Domains", and the value of the domain is a function of the ETH price.

When ETH rises, users gain leveraged returns. When ETH falls and approaches the liquidation line, the price curve converts assets into USDC and repays the original loan.

However, Blackwing has not disclosed the specific price curve. All executions are handled by its intent parser architecture. Users do not need to pay attention to various issues such as the chain and MEV. The impact on trading profits and strategies needs further disclosure.

Interactive Tutorial

The Blackwing testnet Tomcat-1 will be launched on May 14th, supported by Initia and Celestia. The mainnet is expected to be launched in the summer of 24.

Blackwing points can be obtained in two categories: through asset deposits and through trading profits.

Asset Deposit

  • Go to the official website (click to jump) and enter the invitation code (it is recommended to search on the X platform, you can also use mine, 8 qpygg, h 0 mnla, j 3 tfdc, b 8 wkgp, bj 0 p 0 l, jx 1 bso, r 38 t 0 e, o 4 t 6 cz, lqp 7 ib, 72 ir 5 w), verify the X account, Discord, Telegram, etc.;

  • Choose one of the three networks: BNB Chain, Arbitrum, and Ethereum Mainnet, and deposit any amount of assets to Blackwing to obtain basic BXP. The assets that can be deposited include ETH, USDC, and various LRTs (such as eETH, rsETH, etc.). Currently, $42.7 million in assets have been deposited in the entire network.

  • Users can get more BXP by depositing more assets, which will be continuously distributed over time. In addition, there is an additional APR bonus based on the deposit amount, which is calculated based on a bonding curve and is related to the deposited funds in the entire network;

  • Users can also withdraw funds from Blackwing at any time, but withdrawals will result in the initial BXP, referral rewards, and other non-deposit-earned BXP being confiscated.

Transaction acquisition

  • After obtaining BXP through deposit or invitation, users can choose to exchange BXP for testnet BUSD. The conversion interface can be entered by clicking BUSD in the upper right corner.

  • After exchanging BUSD, users can enter the trading interface to trade. Currently, they can only select the amount and direction. The specific leverage mode and parameters are set by Blackwing.

  • Blackwing will issue BXP rewards based on the user's profitability, which has nothing to do with the number of transactions, deposit amount, etc. Therefore, users are requested to carefully choose the transaction direction and currency, and there is no need to repeatedly interact with the volume.