On November 21, 2023, Blast, a new second-tier solution on Ethereum (ETH), created unprecedented hype on social media. At the time of writing, more than $87 million in liquidity has been injected into this on-chain bridge.
What is Blast, New Ethereum Staking L2: Highlights
The Blast L2 protocol attempts to change the way Ether (ETH) is deployed on-chain. It uses a number of eccentric mechanisms designed to stake ETH holders more profitably and seamlessly.
- Blast is promoted as a second-layer protocol on top of Ethereum (ETH), the largest programmable blockchain.
- According to his team’s statement, Blast will automatically stake all injected crypto into Lido and redistribute the stake rewards to investors if it is L2.
- Users who bridge stablecoins will also automatically receive USDB, Blast’s auto-rebasing stablecoin, to benefit from additional yield from MakerDAO’s on-chain T-bill protocol.
- The Blast Team will enable withdrawals on February 24, 2024, while Blast Point redemptions will begin in May.
The project moved over $87 million worth of Ether and stablecoins in less than 24 hours after launch.
At the time of writing, the TVL metric is showing daily growth of over 20,000%, making it perhaps the fastest growing L2 in Ethereum (ETH) history.
Blast, Most Overhyped Ethereum L2 in Q4 2023
Blast, a new L2 on Ethereum, aims to make staking ETH more profitable through the concept of native yield.
Blast L2: Basic
Blast is the second-layer solution on top of the Ethereum (ETH) blockchain. According to the official statement, Blast was developed by employees at Blur, a dominant NFT marketplace. It is also said to be funded by heavyweight VCs Paradigm, Standard Crypto and Primitive Ventures with the participation of top angel investors Andrew Kang and Santiago Santos.
Simply put, the protocol attempts to offer more inclusive and profitable stakes for ETH and stablecoin holders than its competitors.
With Blast, ETH itself bases itself natively on the L2. The ether-denominated proceeds of an L1 staking protocol (initially Lido) are automatically transferred to users via rebasing ETH on the L2.
Blast attempts to integrate real-world assets into the ETH staking process. All of its customers who inject stablecoins will receive USDB, Blast’s own asset. The proceeds for USDB come from the MakerDAO protocol, pegged to US 10-year T-bills.
Blast L2: When will the token arrive?
Blast has released a three-step timeline for its activities:
- Early Access (already live as of November 21): Bridge goes live, Blast Points distribution begins.
- Mainnet launch (expected February 24, 2024): dApps go live, ETH withdrawals powered by team.
- Redemption (expected May 24, 2024): Blast Points Redemption activated.
Users will not be able to withdraw what they injected into Blast until three months after the start of the early access campaign.
Blast Ethereum L2: Risks
In addition to cryptocurrency’s high volatility and other ‘regular’ considerations necessary for crypto investors, there are some additional risks associated with the project so far:
- No one can predict the price of Ether and associated assets on the day of unlocking; the USD-denominated valuation may increase or decrease.
- Token airdrop is not guaranteed; the rules have also yet to be announced.
- The interest in building dApps on this L2 cannot be predicted.
Therefore, users should be extra careful when working with any cryptocurrency protocol in its early stages.
