What You need to know about Blast L2
Blast is an innovative Ethereum Layer 2 (L2) platform that offers native yields for both ETH and stablecoins. It is unique in the L2 space for providing this functionality, which prevents the depreciation of asset value that occurs in other L2s without yield. Users on Blast benefit from automatic compounding of their balances with yields of 4% on ETH and 5% on stablecoins.
Blast leverages the Ethereum Shanghai upgrade to channel ETH yield from L1 staking, primarily through Lido, directly to users with a rebasing mechanism. It also offers USDB, an auto-rebasing stablecoin, yielding from MakerDAO’s T-Bill protocol. The platform is designed to attract liquidity by offering higher yields, similar to the risk-free interest rate in traditional finance, to combat the effects of inflation and encourage community engagement in protocol development.
The platform was backed by a $20 million investment from key players like Paradigm and Standard Crypto and was developed by a team with backgrounds in prestigious institutions like MakerDAO, MIT, and Yale.
Blast is currently in an Early Access phase, which is by invitation only. Users who bridge assets to Blast automatically earn yield and Blast Points as part of the platform’s airdrop campaign. These Blast Points are expected to be redeemable in May 2024, and there is no explicit mention of a unique token specifically for Blast as of now.
The creator of Blast is known as Pacmanblur, the founder of the popular NFT marketplace Blur. The team comprises individuals with significant backgrounds and experience in the DeFi and Web3 sectors, especially those related to Ethereum-based protocols.
More details on the project coming soon in Jan 2024.
