Since Blast opened its doors for deposits on Monday, November 21, users have moved an impressive $400 million worth of stablecoins and ETH to the platform in just three days.
its an Ethereum Layer 2 platform, is all about maximizing staking yields. It boasts backing from the NFT marketplace Blur, as well as support from prominent investors like Paradigm and Standard Crypto. Despite the star-studded lineup of supporters that has drawn users to this new platform, there’s a twist that’s catching the attention of cybersecurity enthusiasts—the multi-signature Gnosis Safe responsible for holding deposits.
This security feature has some experts raising their eyebrows, expressing concerns about the safety of users’ funds.
what’s Blast ?
- it is a new Ethereum L2 developed by the Blur founder Pacman.
- Promising to fight asset depreciation for Blur users, over $400M worth of crypto have been sent to the new platform in 3 days.
- However, critics have highlighted the project’s multi-signature Gnosis Safe as a major security concern.
Its, an upcoming layer-2 blockchain slated to launch in March, has garnered considerable attention, securing an impressive sum exceeding $225 million in staked ether (stETH) and stablecoins since this Monday. This accomplishment is noteworthy, especially considering the initial skepticism expressed by various corners of the crypto investment community.
Distinguishing itself as the pioneer in layer-2 networks that seamlessly incorporates native staking, Blast is setting its sights on cultivating yield through a dual approach involving ether (ETH) staking and real-world assets (RWAs). The layer-2 concept involves constructing networks on top of layer-1 blockchains, such as Ethereum, with the primary goal of facilitating faster and more cost-effective transactions.
At the helm of this ambitious protocol is the pseudonymous figure known as @PacmanBlur, a co-founder of the widely acclaimed NFT marketplace Blur. The allure of Blast extends beyond its technical innovations; it is further amplified by the notable support it enjoys from key backers. These include the well-established crypto fund Paradigm and the distinctive “eGirl Capital,” a collective of crypto-native investors, among others.
The integration of native staking within Blast not only sets it apart in the layer-2 landscape but also positions it as a potential game-changer in the broader blockchain ecosystem. As the platform gains momentum, it’s intriguing to observe how the dynamics between layer-1 and layer-2 blockchains evolve, with Blast emerging as a noteworthy player in this transformative narrative.
A crucial aspect to bear in mind is that withdrawing staked assets is on pause until the Blast bridge goes live in February. During this interim period, users are awarded “Blast points” as a placeholder, which can later be utilized to claim an airdrop scheduled for May. For those eager to accumulate more points, introducing new users through unique referral links becomes a rewarding endeavor. As of Thursday, Blast operates on an invite-only basis, requiring a code from an existing user to grant access.
The noteworthy detail is that a significant portion of the $225 million recently acquired by Blast has been staked within the liquid-staking protocol Lido. This strategic move positions Blast as the seventh-largest holder of staked ether, as reported by Etherscan.
However, the unconventional strategy of restaking on Lido in exchange for the distribution of somewhat mysterious Blast points has triggered skepticism within the crypto community. A crypto trader on X expressed concern, stating, “Blast is actually insane. Use points to attract TVL to a chain that doesn’t exist, convert the deposited ETH into stETH on a 5-person multisig of anon devs.” This references Total Value Locked (TVL), representing the overall value of assets deposited in the protocol.
Critics have drawn parallels between Blast points and a pyramid scheme, where early users have the potential to accrue more points based on the number of users they bring into the system. Detailed technical documents reveal that users gain an additional 16% in points when their invited users attract more participants, with another 8% bonus if the second level brings in additional participants. The intricacies of this point system are sparking discussions within the crypto community about the sustainability and fairness of Blast’s unique approach.
A hot topic in the crypto community revolves around the necessity of additional layer-2 networks in the already bustling decentralized finance (DeFi) space. Currently, there are a whopping 232 blockchains in play, as reported by DeFiLlama. This crowded landscape often prompts discussions about whether these networks, many of which share functions and users, truly need more layer-2 additions. Notably, Ethereum takes the lead among them, commanding a significant 55% of the total value locked, followed by Tron at 17%, and Binance Smart Chain (BSC) at 6%.
In recent months, major crypto exchanges Coinbase and Kraken have made notable entries into the layer-2 network arena. However, it’s intriguing to note that Blast’s total value locked, currently at $225 million, is rapidly approaching the figures of Coinbase’s Base, which stands at $284 million.
What adds to the fascination is that Blast’s blockchain won’t go live for another four months. Surprisingly, this timeline hasn’t dampened the enthusiasm of investors, who continue to inject capital into the platform, even in the face of some uncertainty surrounding Blast points. Andrew Kang, co-founder of Mechanism Capital, shared his perspective, stating that Blast marks his “first new L2 investment since Arbitrum.” This underscores the significant attention and interest Blast is garnering within the crypto investment community.
In the midst of all this, the price of the closely associated Blur (BLUR) token has experienced an impressive 18% surge in the last 24 hours. This surge contributes to a substantial weekly gain, totaling nearly 40%. For some investors, Blur is emerging as a beta bet in relation to Blast.
Founder of Blur, known as @PacmanBlur, shared in a recent post that Blast functions as an extension of the Blur ecosystem. It provides Blur users with the opportunity to earn yields on their idle assets, all the while enhancing the technical aspects required to offer sophisticated NFT products to users. This integration showcases the interconnected nature of these platforms, where the success of one, like Blast, has a positive ripple effect on its associated tokens, such as Blur.
Frequently Asked Questions
- What is Blast, and when did it start accepting deposits?
- It is an Ethereum Layer 2 platform that began accepting deposits on Monday, November 21.
- How much value has been transferred in three days since the deposit opening?
- Users have moved an impressive $400 million worth of stablecoins and ETH to the platform in just three days.
- Who are the notable backers and what is raising concerns among cybersecurity enthusiasts?
- It is backed by the NFT marketplace Blur and prominent investors like Paradigm and Standard Crypto. However, the multi-signature Gnosis Safe responsible for holding deposits has raised concerns among cybersecurity enthusiasts.
- When is Blast scheduled to go live, and what distinguishes it in the layer-2 network landscape?
- It is slated to launch in March and distinguishes itself by incorporating native staking to maximize yields through ether (ETH) staking and real-world assets (RWAs).
- What is the current total value locked on Blast, and what platform has received a significant portion of it?
- It has secured over $225 million in staked ether (stETH) and stablecoins. A substantial portion has been staked within the liquid-staking protocol Lido, making It the seventh-largest holder of staked ether.
- How can users withdraw staked assets on Blast, and what do they receive in the meantime?
- Withdrawal of staked assets is paused until the Blast bridge goes live in February. In the meantime, users receive “Blast points,” which can be used for a scheduled airdrop in May.
- Is Blast an invite-only platform, and what has garnered attention within the crypto community?
- Yes, it operates on an invite-only basis as of Thursday. The integration of native staking and the unconventional strategy of restaking on Lido has sparked discussions within the crypto community.
- How does Blast compare to other layer-2 networks in the decentralized finance (DeFi) space?
- In a crowded DeFi space with 232 blockchains, its total value locked is rapidly approaching that of Coinbase’s Base, indicating significant attention and interest.
- What is the recent performance of the closely related Blur (BLUR) token, and how is it linked ?
- The Blur token has seen an 18% surge in the last 24 hours and has become a beta bet for some investors in relation. @PacmanBlur, the founder of Blur, emphasizes Blast as an extension of the Blur ecosystem.
- What is the significance of the $225 million staked within the liquid-staking protocol Lido ?
- It has become the seventh-largest holder of staked ether due to a significant portion of $225 million being staked within the liquid-staking protocol Lido.
- Why are some cybersecurity experts expressing concerns about the multi-signature Gnosis Safe on Blast?
- The multi-signature Gnosis Safe, responsible for holding deposits on Blast, has raised concerns among cybersecurity experts about the safety of users’ funds.
- What makes Blast unique in the broader blockchain ecosystem?
- It stands out by integrating native staking within its layer-2 platform, not only differentiating itself in the layer-2 landscape but also potentially transforming the broader blockchain ecosystem.
- Who is @PacmanBlur, and what role does this pseudonymous figure play in the development of Blast?
- @PacmanBlur is a co-founder of the NFT marketplace Blur and is at the helm of the ambitious Blast protocol, playing a key role in its development.
- What is the timeline for Blast’s blockchain to go live, and how has this affected investor interest?
- Blast’s blockchain is expected to go live in March, but this four-month timeline has not dampened investor enthusiasm, as capital continues to flow into the platform.
- How do users earn additional Blast points, and what has triggered skepticism in the crypto community?
- Users can earn additional Blast points by introducing new users through unique referral links. However, the strategy of restaking on Lido in exchange for distributing Blast points has triggered skepticism within the crypto community.
- What is the Total Value Locked (TVL), and why is it mentioned in connection with Blast?
- Total Value Locked (TVL) refers to the overall value of assets deposited in a protocol. it has faced criticism for using points to attract TVL to a chain that is not yet live, raising questions about the strategy’s sustainability.
- How has the Blur (BLUR) token performed in response to Blast developments?
- The Blur (BLUR) token has seen an 18% surge in the last 24 hours and a significant weekly gain of nearly 40%, positioning it as a beta bet for some investors in relation to Blast.
- What is the role of “eGirl Capital” in supporting Blast, and who are the other prominent backers?
- “eGirl Capital,” a collective of crypto-native investors, is among the prominent backers supporting it. Other key backers include the NFT marketplace Blur and the well-established crypto fund Paradigm.
- How does it plan to generate yield, and what is the dual approach it takes involving ether (ETH) staking and real-world assets (RWAs)?
- It plans to generate yield through a dual approach involving ether (ETH) staking and real-world assets (RWAs), distinguishing itself as the pioneer in layer-2 networks that seamlessly incorporates native staking.
- Why has Andrew Kang, co-founder of Mechanism Capital, referred to Blast as his “first new L2 investment since Arbitrum”?
- Andrew Kang, co-founder of Mechanism Capital, has expressed that it marks his “first new L2 investment since Arbitrum,” indicating the significance and attention the platform is receiving within the crypto investment community.
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