Blast represents a significant advancement in Ethereum Layer 2 (L2) platforms, being the first to introduce native yield for ETH and stablecoins. This feature is not present in other L2s where asset values tend to depreciate due to a default 0% interest rate. Blast sets itself apart by offering a 4% yield on ETH and 5% on stablecoins, facilitated by automatic compounding of user balances. The yields originate from ETH staking and Real-World Asset protocols, ensuring direct benefits to its users.
The platform aims to expand the on-chain economy by providing the highest yield possible on an L2. Participants in the Blast ecosystem have the opportunity to benefit from the Blast Airdrop, which is currently active.
Blast functions through several innovative mechanisms:
- Auto Rebasing: Focused on ETH, Blast allows for native rebasing of ETH on its L2, aligning with its prevalent use in transactions and decentralized applications.
- L1 Staking: Post Ethereum's Shanghai upgrade, Blast incorporates yield from L1 staking. This is initially done through Lido, transferring it automatically to the L2 and enhancing the ETH rebasing process. There is scope for this solution to be in-housed moving forward and for Blast to therefore move away from its reliance on Lido.
- T-Bill Yield: For stablecoin transactions, Blast introduces USDB, an auto-rebasing stablecoin. The yield for USDB is sourced from MakerDAO's on-chain T-Bill protocol, allowing for redemption into USDC when transitioning back to Ethereum.
The development of a new L2 like Blast addresses the issue of a 0% risk-free rate prevalent in existing L2s. Following the Ethereum merge, there is a natural 4% yield on ETH and a 5% yield on stablecoins through on-chain T-Bill protocols. Without equivalent or superior yields, users are subject to a form of inflationary loss. As an EVM-compatible, optimistic rollup, Blast is specifically engineered to increase the baseline yield for users and developers, while preserving the intuitive experience for its users.
Total Value Locked:
Since the launch of Blast in late November 2023, the protocol has amassed over $1.3b in TVL. The composition of these assets is as follows:
The launch of Blast testnet:
The Blast Testnet has recently launched, marking the start of the exciting Blast BIG BANG competition. This event presents a unique opportunity for decentralized applications to gain exposure to over 100,000 users and access to a Total Value Locked of $1.3 billion. It also offers a chance to connect with prominent investors and earn a share of the Blast Airdrop. Notably, 50% of the airdrop is allocated to developers making it one of the most substantial distributions to date.
Participating DApps can use the Blast Airdrop to drive growth on the Blast Mainnet, gaining a competitive advantage. Additionally, Blast will facilitate connections between winning teams and investors keen on investing in Blast-native DApps.
The competition process is straightforward:
- DApp developers must register for the Blast Builders Slack by February 16.
- Projects need to be submitted by the same date.
- Judges will live stream their evaluations of top projects and announce winners on February 20.
The winning projects will then be showcased to an audience of over 100,000 users at the Mainnet launch, scheduled for the end of February.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.