Blackwing is a modular blockchain that enables liquidation-free leverage trading for any asset. Blackwing aims to revolutionize the trading landscape for digital assets by leveraging technological advancements and cultivating a collaborative ecosystem.

What is Blackwing?

Blackwing is a blockchain platform specializing in liquidation-free leverage trading for long-tail assets. Its limitless pools enable seamless cross-chain transactions without bridging fees. To further its innovative approach, Blackwing operates a variety of modular apps that emphasize community engagement, rapid execution, and competitive pricing while maintaining decentralization. This approach sets new standards in leverage trading by offering low fees and competitive pricing.

Blackwing is a modular blockchain that facilitates liquidation-free leverage trading for long-tail assets using a novel concept known as Limitless Pools. Using Initia (a network for interwoven rollups) as a base and taking advantage of new developments in modular infrastructure, Blackwing can also make it easy for users to use trade assets from any chain without compromising decentralization.

Background of Blackwing

A team with extensive experience at Robinhood and Meta developed and founded Blackwing in November 2022. Shahmeer Navid and Zorayr Khalapyan’s vast experience at Robinhood and Meta underscores the team’s capacity to undertake such a significant endeavor and challenge the limits of the modular blockchain ecosystem.

Shahmeer Navid served as a Software Engineering Intern at Meta from January 2016 to August 2017 and was an engineer at Robinhood from 2018 to April 2022. Navid earned a bachelor’s degree in computer science from the University of Waterloo. Zorayr Khalapyan was the head of new product experimentation, software engineer, and engineering manager at Meta from June 2014 to January 2021.

In March 2024, Hashed and Gumi Cryptos led a $4.5 million funding round for Blackwing. The investment will be used to develop the first modular layer 2 blockchain designed explicitly for liquidation-free leveraged trading of any asset.

Features of Blackwing

• Limitless Leverage: Blackwing allows users to trade with greater leverage without concern of liquidation, potentially increasing their returns.
• Long-Term Asset Support: Blackwing offers a broader selection of assets than the typical high-liquidity options.
• Modular Architecture: Blackwing capitalizes on the most recent developments in modular infrastructure to guarantee scalability and adaptability for future expansion.
• Decentralization: Blackwing’s primary objective is to preserve a decentralized governance structure and prioritize user control.

Benefits of Blackwing

Blackwing’s innovative methodology provides consumers with numerous benefits:

• Enhanced Profit Potential: Although higher leverage entails a higher risk, it has the potential to generate more significant profits.
• Enhanced Investment Flexibility: By trading a broader selection of assets, users can broaden their investment strategies.
• Reduced Liquidation Risk: Limitless pools provide a safety net by preventing forced liquidation due to price fluctuations.

Key Components of Blackwings

Bridge Abstraction Via Intent-Solver Architecture

The platform Intent-Solver Architecture is responsible for the bridge abstraction in Blackwing. Blackwing’s contemporary DEX abstraction layer maintains a chain-agnostic approach and optimizes the trading process across all chains. Users can articulate their objectives, submit collateral, and allow the platform to manage the remainder. To abstract away the complexities of cross-chain bridging, solvers compete to offer the best price.

On Blackwing, an intent is represented on the chain using Abstract Transaction Objects (ATOs), which correspond to position modifications. A user who wishes to execute a trade submits a signed ATO to the Blackwing chain.

Subscriptions to a feed of ATOs, which includes the requisite information for execution (e.g., user target chain addresses and target chain contract addresses), are available to solvers. On the Blackwing chain, the bidding period for each ATO is three blocks. Following the conclusion of the bidding period, the solver who submitted the proposal with the highest price will be chosen to execute the trade.

Blackwing envisions a network of solvers participating in Blackwing markets, which will lead to faster executions and improved price competition. As a step toward this vision, Blackwing has implemented Whirlwind, the network’s initial solver. Circle CCTP, Axelar, and LayerZero are the foundations of Whirlwind’s just-in-time liquidity architecture, which manages deployed liquidity across all supported chains.

Liquidation-Free Leverage Via Limitless Pools

Historically, leverage trading has been associated with significant risks, frequently resulting in asset loss and liquidation. Blackwing, which looks to revolutionize this paradigm and offers traders unparalleled security and flexibility, eliminates the possibility of liquidation. Blackwing aims to take decentralized leverage to the next level by providing transparent, accessible margin trading across all assets while reducing the risks of unjust liquidations and centralized control.

Vertical Integration

Blackwing leverages two-signature authentication to provide enhanced security, seamlessly integrating with any wallet from any chain. Blackwing’s L2 infrastructure is envisioned to guarantee quick, effective block sequencing and gas fee allocation.

Blackwing aims to offer users the ability to seamlessly leverage trade assets from any chain, including Ethereum, Arbitrum, and the Binance Smart Chain. This interoperable approach promotes a genuinely decentralized trading experience and enhances accessibility, enabling users to fully leverage blockchain technology’s potential without any constraints.

Blackwing’s Margin Trading

Blackwing has implemented an innovative strategy to revolutionize the crypto margin trading industry. Blackwing’s approach to liquidation-free margin trading appeals to crypto investors interested in leveraging their assets. For the issue of cascading liquidations, the modular architecture and isolated margin pools present a plausible solution. The following trading margins are available to users through Blackwing:

Limitless Pool

Limitless Pools, a new primitive that permits liquidation-free leverage on any asset, is the foundation for Blackwing’s margin trading. Limitless Pools are based on the idea that the returns on existing CLMM and AMM positions are similar to those of strategies that use cash-secured puts or covered calls.

Blackwing’s conversion of LP positions into domains, which ensures the original LP position can be recreated regardless of the price of the original asset, is analogous to how multiple option contracts can be combined to form various strategies.

To establish Limitless Pool Domains, traders must pay LP premium. Upfront premiums are charged for maintaining a vacant position for seven days. Suppose the domain is deconstructed before the 7 days. In that case, the merchant will receive a prorated premium refund for the remaining days. The trader can extend the domain by spending a premium for an additional seven days before the seven days have elapsed.

Limitless pools enable the utilization of existing AMM/CLMM LP positions as liquidity for margin trading. The LP position remains in the original AMM/CLMM pool and continues to generate transaction fees rather than being removed. Only when the LP is converted into a domain is the original LP position eliminated. At this point, it earns additional costs through the trade premium.

Classic Mode

Blackwing also supports Classic Mode, which allows for margin trading without using limitless pools. Classic Mode functions similarly to other margin trading protocols; users can establish leveraged positions by providing collateral; however, they are liquidated if the value of their position falls below a specific threshold. Classic Mode positions are not composable, utilize isolated margins, and exclusively support USDC as collateral and the quote currency.

Users may opt to utilize Classic Mode if Limitless Pools do not support the asset they wish to trade. Anyone can liquidate a position on the destination chain without obtaining permission. When the position is closed, the liquidator receives a liquidation reward, and the user gets the remaining collateral.

Blackwing’s Incentives

Blackwing’s Airdrop

To participate in the airdrop, users must visit the official page, enter a referral code, connect their Twitter, email, and Telegram accounts, attach their wallet (Ethereum, Arbitrum, or Binance Smart Chain), deposit supported tokens, and earn BXP. The process is engaging and potentially lucrative, as each referral earns additional BXP.

Users who accumulate BXP are eligible for future airdrops, which grant them early access to Blackwing tokens. The rewards are substantial. Blackwing’s distinctive trading model guarantees a secure, decentralized environment by eliminating liquidation risks and facilitating cross-chain trading.

The Blackwing XP (BXP) Program

The Blackwing XP (BXP) program is intended to incentivize early adopters and participants in the inception of Blackwing’s development. The accumulation of BXP and other factors will determine airdrop rankings. To qualify for any BXP, users must complete the Blackwing onboarding process. The initial quantity of BXP earned is contingent upon the number of steps completed in the onboarding process and the activity of accounts connected to Blackwing, and it ranges from 0 to 50 BXP. This serves to safeguard the system and safeguard users from malware.

Users can begin trading by converting their BXP into BUSD, Blackwing’s Tesnet USD currency, with Tomcat-1, Blackwing’s first testnet. At a 1:100 ratio, 1 BXP is equivalent to $1.00 in BUSD. For instance, if users possess 10 BXP, they can convert them all to $1000 in BUSD.

It is possible to convert any positive BUSD from successful transactions back into BXP. Similarly, a negative PNL indicates that users have lost equivalent BXP. It is possible to switch between BXP and BUSD at any given moment.

Codes for Referrals

Upon depositing into Blackwing, each community member receives a set of ten distinctive referral codes. Based on Blackwing’s BXP Share program, each code can be utilized to invite a friend and accumulate additional BXP. The more users and their direct invitees deposit, the more referral codes they can access.

Conclusion

Blackwing is on the cutting edge of blockchain technology, which could significantly impact decentralized finance and leverage trade. With its limitless pools and commitment to openness and decentralization, Blackwing will look to open up a new era of opportunities for traders worldwide. Nevertheless, Blackwing is still in the early phases of development. The project’s success will depend on its capacity to attract users and sustain a healthy ecosystem for its isolated margin pools. Furthermore, establishing investor trust will be contingent upon implementing comprehensive security audits and real-world testing.