The world of cryptocurrency and blockchain technology constantly evolves, and one of the latest breakthroughs making waves is Blast, an innovative Layer 2 solution built on Ethereum. Let’s delve into what Blast offers, its unique features, team, functionalities, and the community’s response to this promising platform.
What Sets Blast Apart?
At its core, Blast is an Ethereum optimistic rollup that distinguishes itself by offering “native yield” for both ETH and stablecoins like USDC, USDT, and DAI. Unlike many Layer 2 chains focused solely on scalability, Blast goes further by enabling assets to generate yield autonomously.
The platform’s yield mechanism involves ETH staking and real-world asset protocols, delivering automatic returns of 4% for ETH and an enticing 5% for stablecoins presently. This approach promises users a seamless way to earn passive income on their digital assets.
Faces Behind Blast
Pacman, the founder of Blur, a leading NFT marketplace aggregator, spearheads Blast. Joining him are individuals from prestigious institutions such as FAANG, Yale, MIT, Nanyang Technological University, and Seoul National University. The team boasts extensive experience in DeFi and Web3 protocols on Ethereum and Solana.
Securing a notable $20M from Paradigm, Standard Crypto, eGirl Capital, and other prominent crypto-native entities, Blast has gained traction and investment interest due to its innovative approach.
How Does Blast Enable Native Yield?
Blast simplifies the process of earning native yield on ETH and stablecoins. When tokens are deposited onto other Layer 2 platforms, Blast escrows equivalent tokens in smart contracts on corresponding Layer 1s. Unlike conventional approaches where deposited tokens remain idle, Blast converts these assets into stETH and DAI, accruing yields through staking rewards and treasuries.
For ETH, tokens are staked via Lido Finance’s liquid staking protocol, offering a current yield of approximately 4%. On the other hand, stablecoins are automatically directed towards on-chain treasury bill protocols through MakerDAO, providing users a substantial 5% yield amid rate hikes.
Early Access and Community Involvement
Blast’s Early Access phase commenced with a community airdrop program, aiming to engage both Early Access Members and Developers. Participation requires an invitation link, enabling users to join the platform, connect their accounts, and earn Blast points through various activities like asset bridging, staking, and referrals.
Through a referral system, users can earn bonus points based on their invitees’ activities, fostering a chain of rewards. The BLAST token airdrop is scheduled for May 2024, offering participants a chance to redeem Blast Points based on their contributions.
Growth, Concerns, and Controversies
Despite the early excitement, some concerns loom over Blast. Collaborating exclusively with MakerDAO and relying heavily on Lido Finance raises concerns about potential single points of failure and centralization. Furthermore, critics have compared Blast’s referral program to a pyramid scheme.
Moreover, Blast’s decision to lock funds in a multisig wallet until the mainnet launch in February 2024 has drawn criticism, especially from Dan Robinson of Paradigm, highlighting security risks and setting a concerning precedent.
Also Read: Role of Seed Phrases and Private Keys in Cryptocurrency Wallets
Final Thoughts
Blast presents a compelling opportunity to earn passive income on Ethereum and stablecoins. However, it’s crucial for potential users to conduct thorough research due to the platform’s controversies and concerns. As Blast progresses towards its mainnet launch, it remains to be seen how it navigates these challenges and delivers on its promises to the crypto community.
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