# What is Blade?

### The Blue-Chip DEX

Blade is a DEX designed for blue-chip tokens (e.g., ETH, WBTC, USD stablecoins, etc.) and no impermanent loss. Blue-chip tokens comprise 70% of all on-chain trading volume.

Blade's novel architecture makes money for LPs using the same arbitrage strategy used by professional market makers, but implemented in a permissionless and non-custodial manner. In contrast to most DEXs, Blade's LP yields are not generated from fees.

Blade computes prices off-chain using a sophisticated formula that incorporates low-latency price feeds from centralized exchanges along with a snapshot of on-chain state. It then uses on-chain proofs to validate prices and preserve permissionlessness. This allows Blade to make money from arbitrage, instead of paying a tax to arbitrageurs, while keeping gas fees low for traders. On Blade, liquidity providers take home superior yields with **no impermanent loss** and traders can expect no whales or bots front-running their trades.