The Bluefin DEX on Sui offers perps trading and swap services, and several strategies for users looking to earn passive returns on their holdings. The highest APRs can be gained through providing concentrated liquidity, and Bluefin features an auto-rebalancing function that removes some of the need for active position management. Yield can also be earned by providing assets for lending.
In this guide we’ll head over to Sui and look at a platform called Bluefin, where you can put stablecoins and other tokens to work in order to earn yield, with plenty of low maintenance strategies on offer.
Sui itself is emerging this cycle as an efficient chain on which to operate DeFi protocols, and has seen its DeFi-related TVL rise to as high as $2.1 billion last month, while it sits currently at $1.9 billion.
As always, you need to be aware of the risks involved when using DeFi, which include smart contract exploits, frontend attacks, stablecoin de-pegs, and Impermanent Loss. Also, be aware that there was a protocol hack on Sui-based protocol Cetus last month, with funds compromised. However, Cetus has now relaunched with a detailed recovery and compensation plan, and is back in the top ten DEXes by trading volume.
What Is Bluefin?
The third biggest DeFi protocol on Sui by TVL (after SuiLend and NAVI Protocol), Bluefin at its core operates as an AMM-powered platform that enables permissionless derivatives trading, while in terms of trading volume Bluefin is the second to top protocol on Sui after Cetus.
It also contains a swap function, and a lending market so users can borrow against crypto assets. And for users looking to earn passively rather than either trade, swap or borrow, there are ways to supply liquidity and pick up yield in return, with varying APRs on offer depending on the token pair.
Bluefin has a current total TVL of $200 million, and available liquidity in its lending protocol of $78.8 million, while its thirty-day trading volume stands at $3.4 billion.
Earning Strategies on Bluefin
First you’ll need to open the Bluefin app, click Get Started, and connect up your wallet, making sure you’re using a Sui-compatible wallet. Some options here include Slush Wallet, OKX Wallet, and Bitget Wallet, but you can also use Phantom (which is better known as a Solana wallet but added support for Sui in January).
Once connected, if you click on the Deposit button at the top right, you can use the Bridge option to transfer assets across to Sui if required, and you can then make deposits to Bluefin. If you need to swap any tokens so you’ve got the right assets for whichever pools you’re adding liquidity to, then you can use the on-platform Swap function.
We’re focused on providing liquidity so let’s check the Pools and Lend functions. If you click on the Pools tab you’ll get two options: Concentrated Liquidity and Bluefin Vaults, and you need to select Concentrated Liquidity.
Provide Concentrated Liquidity
These are pools related to Spot trading, and if you scroll down the Concentrated Pools page you can check the various token pairs along with their TVLs, volumes, fees, and APRs.
If you want to stick to lower-risk, lower-maintenance options, then click on the stables filter and you’ll then see only stablecoin pairs. These are very closely correlated tokens and their prices…
