Problem: Inefficiencies in Liquidity Management

LRTs, LSTs, stablecoins and other pegged asset providers pay a high price for incentivizing third-party liquidity.

For example, the GHO/USDC pool has seen capital inefficiencies due to narrow width settings, pushing liquidity out of range and leading to roughly $7,000 per day in wasted incentives.

https://x.com/TokenBrice/status/1837131982817436153

BEG - Baseline Peg

Baseline’s innovation is an algorithmic liquidity management utilizing Uniswap V3 pools. The tech is already live on assets such as $YES, $MACHI and $AI. Baseline Peg is an application of Baseline mechanics to assets that need to maintain tight-range liquidity.

How it benefits projects

• Capital efficiency - no need to incentivize 3rd party liquidity that will leave once incentives end
• Guaranteed liquidity - Baseline Peg builds up protocol-owned liquidity (POL) over time, adding stability and resilience in any market condition
• New revenue stream - instead of making $$ only on staking ETH, projects make profits from market making the tight range

Vision: Thruster & Blast as the Market Making Chain for LRTs

Thruster has already pioneered the introduction of LRTs on the Blast. Now, Baseline can elevate this strategy with Thruster to become the go-to "Market Making DEX" for high-quality liquidity management.

We can kick off this strategy by enabling protocols like Renzo, EtherFi, and Frax to achieve efficient, sustainable liquidity, attracting more projects and increasing TVL on Thruster. Baseline’s advanced market-making will turn Blast into the hub for LRTs, reinforcing its reputation as the leading network for liquidity reliability and efficiency.

Additional Opportunity: Bringing GHO to Blast with Profitable Market-Making