I'll take a shot at this. The blueing results from extreme overheating of the brakes. Have you been braking really hard from high speeds? Have you been trying to do stoppies?
There could also be a problem with the calipers sticking. Is it on both discs or just one? If a caliper were sticking, then it could be placing enough grag on the pads to create heat from the friction which would cause overheating.
As for the loss of grip. When the brakes overheated, this probably heated the pads to the point where the pad compound started to melt. Once the brakes were released, this allowed them to cool back down, but also caused them to glaze over. Now, instead of having a rough pad to grab the disc, you have a slick pad trying to do the same amount of work.
I would take your bike back to the dealership and have them check the brakes for proper operation. You DO NOT want to have a brake failure on the bike.
Remember, your front brake provide 70% of your total stopping power. A weak front brake could be deadly.