The Blood-Transforming Divine Blade is a treasure wielded by Yu Hua in Investiture of the Gods. Chapter 74 describes him deploying it with the speed of a flash of lightning. It is distinct from the ji he uses in ordinary combat and introduces another danger to his encounters.
The threat extends beyond the cutting edge. Chapter 75 connects the wounds’ deadly effects with poison and makes an appropriate elixir necessary for rescue. The blade consequently drives a story of finding a remedy and overcoming the treasure’s effects.
Blood-Transforming is understood through those events. It does not establish a separate system of blood magic or a universal rule that wounded bodies instantly become liquid. Its identifying features are Yu Hua’s swift deployment of the blade and the peril of its wounds.