The Ethereum Layer 2 Network Blast Launches Mainnet
The Ethereum Layer 2 network Blast has officially launched its mainnet, allowing users to withdraw their funds. Created by Tieshun Roquerre, the founder of NFT marketplace Blur, Blast aims to provide a native yield model for ether and stablecoins. The platform offers 4% interest for ether and 5% for stablecoins. Prior to the mainnet launch, Blast had gained over 180,000 community members and over $2.3 billion in total value locked (TVL). Assets on the platform include approximately 469,000 ETH, 77.3 million USDC, 67.1 million USDT, 148,000 stETH, and 24.7 million DAI.
Blast’s Early Access and Yield Model
Early access to Blast began in late November 2023. During this period, users were able to start earning yields through bridging assets to other networks and referring users to the platform. Blast Points were introduced as a reward for these actions. The platform operates on the principle that liquidity flows towards the highest yield opportunities in the market.
Controversy and Claims of Ponzi Scheme
Some users raised concerns about Blast’s yield model, comparing it to a Ponzi scheme. They pointed out that rewards could not be withdrawn until the mainnet launch. However, Roquerre denied these claims and stated that the yield is sustainable and derived from the liquid staking protocol Lido and DeFi protocol MakerDAO.
Funding and Redeeming Blast Points
In November 2023, Blast raised $20 million in a funding round led by Paradigm and Standard Crypto. The ability to redeem Blast Points was tentatively scheduled to begin on May 24.
Disclaimer: The information provided here is for informational purposes only and should not be taken as investment or financial advice. Always conduct your own research before making any investment decisions.
Hot Take: Blast Brings Native Yield Model to Ethereum
The launch of Blast’s mainnet marks an important development in the Ethereum ecosystem. With its native yield model for ether and stablecoins, Blast aims to attract users by offering competitive interest rates. However, the platform has faced criticism and claims of being a Ponzi scheme. Despite these concerns, Blast has gained significant traction with a large community and substantial value locked. It will be interesting to see how Blast evolves and if it can deliver on its promises of sustainable yields.
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