Investors swiftly channeled over $30 million in ether and stablecoins into Blast, the latest Ethereum layer 2 network, mere hours after its Monday launch. This substantial influx underscores the robust demand for Layer 2 solutions, strategically positioned atop layer 1 blockchains like Ethereum, aiming to alleviate issues related to speed, cost, and scalability. The utilization of bridges, blockchain-based tools facilitating token transfers between diverse networks, further amplifies the appeal.
Blast’s allure is further propelled by its distinctive design: depositors commence earning yields on transferred ether concurrently accumulating BLAST points. The project’s emphasis on native participation in ETH staking sets it apart, with staking yields seamlessly benefiting L2 users and decentralized applications (dapps). The team elucidated, “We’ve overhauled the L2 architecture to ensure that your 1 ETH on Blast automatically grows to 1.04, 1.08, 1.12 ETH over time.”
Although users must await the mainnet launch in February for withdrawals and on-chain activities, Blast currently operates on an invite-only basis, necessitating a code from invited users for access. Additionally, the redemption of BLAST points is slated to commence in May.
Among the funds bridged, data reveals that over $19 million in ether has been staked on Lido, poised to yield up to 4% annually. Another $3 million resides on Maker, while a smaller portion of $150,000 in dai (DAI) stablecoins lies dormant in the wallet.
Stablecoin bridging users are rewarded with Blast’s auto-rebasing stablecoin, USDB, deriving its yield from MakerDAO’s on-chain T-Bill protocol.
Having secured over $20 million in funding, with a prominent backing from Paradigm and Standard Crypto, Blast is helmed by the pseudonymous figurehead @PacmanBlur, a co-founder of the NFT marketplace Blur.
@PacmanBlur elucidated in a separate post that Blast serves as an extension of the Blur ecosystem, allowing users to earn yields on idle assets while simultaneously enhancing the technical foundations required for sophisticated NFT products. Following Blast’s release, BLUR prices surged by an impressive 12% in the past 24 hours.