Ethereum Layer-2 Network Blast Faces Criticism from Paradigm
Recently, Blast, an Ethereum layer-2 scaling network led by the founder of NFT marketplace Blur, attracted over $500 million in locked funds from users seeking yield and rewards. However, the launch of Blast has received substantial criticism, and now early investor Paradigm has joined the list of parties expressing concerns.
Paradigm’s Head of Research and General Partner Dan Robinson took to Twitter to express his discontent with Blast’s launch. He stated that while there are aspects of Blast that he finds exciting, he believes the announcement crossed lines in messaging and execution. Robinson specifically mentioned disagreement with launching the bridge before the L2 and not allowing withdrawals for three months.
Blast is an Ethereum layer-2 network that offers native yield for Ethereum and stablecoins, allowing users to lock up their funds for an interest-like return. The network also promises rewards for users, similar to Blur’s airdrop of its BLUR token to NFT traders.
Despite users locking up their funds ahead of Blast’s network launch in 2024, which has brought the total value locked (TVL) to about $535 million, the team has faced significant criticism. One major concern is that users are locking their funds into a bridge that is not live yet and cannot be withdrawn until February 2024. This has raised security concerns due to past exploits involving network bridges.
Blast co-founder Tieshun “Pacman” Roquerre responded to criticisms by addressing misunderstandings around Blast and assuring users that the yield provided comes from legitimate sources such as Lido and MakerDAO.
Paradigm Disagreement and Advocacy for Best Practices
Paradigm, an investor in Blast’s seed round, expressed that they were not aligned with Blast on certain elements of the rollout. Robinson praised Pacman and his team for the success of Blur but emphasized the importance of advocating for best practices in the industry.
Robinson acknowledged that Paradigm invests in strong and independent founders with whom they may not always agree. However, he stated that Paradigm does not endorse the tactics employed by Blast and takes its responsibility in the ecosystem seriously.
Decrypt reached out to both Paradigm and Blast for comment but did not receive an immediate response from either side.
Hot Take: Paradigm Raises Concerns Over Blast’s Launch
Paradigm, an early investor in Ethereum layer-2 scaling network Blast, has expressed concerns over the network’s launch. Head of Research and General Partner Dan Robinson criticized Blast’s messaging and execution, particularly disagreeing with launching the bridge before the L2 and not allowing withdrawals for three months. Despite attracting over $500 million in locked funds, Blast has faced significant criticism over security concerns and allegations of being a Ponzi scheme. Co-founder Tieshun “Pacman” Roquerre has addressed these criticisms, assuring users that Blast’s yield comes from legitimate sources. Paradigm emphasized the importance of advocating for best practices in the industry while acknowledging their disagreement with Blast on certain elements of the rollout.
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