In this rapidly evolving cryptocurrency landscape, the latest launch of a layer 2 solution has gathered everyone’s attention. Recently launched Blast, the latest Ethereum layer 2 network, saw investors pour over $30 million in ether and stablecoins within hours.
Strong demand for Layer-2 solutions
This surge highlights the surging demand for Layer 2 solutions that help speed, cost, and scalability concerns on Layer 1 blockchains like Ethereum. It might give tough competition to Polygon Network (Matic).
Earning yields and BLAST points on transferred Ether
Blast’s unique design has contributed to its attraction. Depositors not only facilitate token transfers but also start earning yields on transferred ether, accompanied by BLAST points. According to the Blast team, “Blast natively participates in ETH staking, and the staking yield is passed back to the L2’s users and dapps. We’ve redesigned the L2 from the ground up so that if you have 1 ETH in your wallet on Blast, over time, it grows to 1.04, 1.08, 1.12 ETH automatically.”
Blast operates on the fundamental principle that markets gravitate toward efficiency, directing liquidity to where it can yield the highest returns. Beyond ETH, stablecoins like USDC, USDT, and DAI also stand to earn yields on Blast.
By bridging stablecoins to Blast, users deposit them into on-chain T-Bill protocols like MakerDAO, and the generated yield is redistributed to Blast users through USDB, the platform’s auto-rebasing stablecoin.
However, users will need to wait until Blast’s mainnet launch in February to withdraw funds or engage in on-chain activities. The platform is currently invite-only, requiring a code from invited users for access. BLAST points earned can be redeemed starting in May.
Of the total funds bridged, over $19 million in ether has been staked on Lido, promising up to a 4% annualized yield. Another $3 million is on Maker, with a smaller tranche of $150,000 in dai (DAI) stablecoins idle in the wallet. Stablecoin bridging users receive Blast’s auto-rebasing stablecoin, USDB, with yields generated from MakerDAO’s on-chain T-Bill protocol.
BLUR prices surge 12% after Blast’s launch
Blast successfully raised over $20 million in a funding round led by Paradigm and Standard Crypto. The project is spearheaded by the pseudonymous figurehead @PacmanBlur, a co-founder of the NFT marketplace Blur. Following Blast’s release, BLUR prices surged by 12% in the past 24 hours, reflecting the positive market response to the new layer 2 solution.
In a separate post, NFT Marketplace Blur Co-Founder PacmanBlur noted that Blast extends the Blur ecosystem, enabling users to earn yields on idle assets while enhancing the technical infrastructure to provide sophisticated NFT products.