New Ethereum Layer 2 Blast by Invitation Only
Users are rushing to bridge their assets to Blast, a new Layer 2 protocol on the Ethereum (ETH) network, with the promise of native yield for ETH and stablecoins. The project is characterized by its early access announcement requiring an invite code, generating immense community interest. Blast, credited to the founder of NFT marketplace Blur and with a hefty investment from Paradigm, Standard Crypto, and others, has seen over 19,000 addresses deposit funds, translating to nearly $60 million in total value locked (TVL). Of which, $50.6 million is staked on Lido, while $8 million is set to earn yield on Maker. However, there’s a major catch. If you deposit your assets on Blast, you can’t withdraw them until February 2024 after the mainnet goes live. This presents a potential rug pull and smart contract-related security risk. So, beware of the prospect of depositing your funds on Blast.
Airdrop Hype
Airdrop hunting is the speculated reason behind the enormous community interest in Blast. Furthermore, the looming airdrop for Blur’s Season 3 has garnered significant attention. Yet, with the excitement comes caution. Consider the risk of locking your ETH or stablecoin until February 2024 and the potential for a rug pull, prompting skepticism about Blast’s legitimacy.
Hot Take
With the impressive community interest and significant TVL on Blast, one must proceed with caution. The project’s attractive yield for ETH and stablecoins and the upcoming airdrop generate hype, but the risk of locking funds and potential for a rug pull are essential considerations that warrant careful evaluation before bridging assets to Blast.
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