Blast Achieves $230M TVL in 48 Hours
Blast, a new Ethereum Layer 2 network, has achieved an impressive Total Value Locked (TVL) of over $230 million within 48 hours of its unveiling. However, there’s a unique twist – the network does not exist yet.
Impressive TVL and Native Yield
This noteworthy accomplishment was shared by the protocol in a post on X (formerly Twitter), asserting that a community of 37,131 members has already transferred funds into its network.
According to recent DeBank L2 data, the TVL has surged to over $326 million at press time. This is mainly driven by Blast’s commitment to providing “native yield” on ETH and stablecoin deposits, offering users nearly 4% and 5%, respectively.
A Unique Ethereum L2 Network
Unveiled on November 21, Blast was developed by the co-founder of the popular non-fungible token (NFT) marketplace Blur and is backed by the prominent venture firm Paradigm. However, its standout feature is its claim to be “the only Ethereum L2 with native yield for ETH and stablecoins.”
The Bridge Structure and Controversies
The L2 network achieves this by utilizing Ethereum staking yield, bridging all ETH to LIDO, and using DAI stablecoin to tap MakerDAO’s growing US Treasury bill yield through its Dai Savings Rate (DSR), which is currently at 5%.
However, Blast’s surging TVL and the one-way bridge structure have sparked divided opinions, as users cannot withdraw bridged assets and earn the promised “native yields” until the L2 goes live through a mainnet launch in February 2024.
The Need for More L2 Networks
The rapid expansion of Blast, coupled with concerns about its one-way bridge, soaring TVL, and Ponzi-like attributes, has prompted discussions about the necessity of more layer 2 solutions in the crowded decentralized finance (DeFi) space.
Blast differentiates itself by emphasizing the combination of yield and points, a unique offering compared to other intrinsic-driven L2 projects on the Ethereum network.
While controversies continue to loom over Blast’s announcement and overall structure, an expected mainnet launch will provide deeper insights into efficiency and trust.
Hot Take: Blast’s Explosive Start Raises Questions
Blast’s rapid rise in TVL within 48 hours is undeniably impressive. However, concerns have been raised about its one-way bridge structure and the delay in providing native yields. Critics argue that this approach compromises security and may resemble a Ponzi scheme. Additionally, there are debates about the need for more layer 2 networks in the DeFi space, considering the existing options. Despite the controversies, investors are still flocking to Blast to earn interest. The upcoming mainnet launch will shed more light on Blast’s efficiency and trustworthiness. As the DeFi industry evolves, it will be interesting to see how Blast navigates these challenges and distinguishes itself from other L2 projects.
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