Key Points
- Ethereum’s Layer 2 network, Blast, has launched its mainnet.
- Blast aims to offer a native yield model for ether and stablecoins, with over $2.3 billion in total value locked.
The Layer 2 network of Ethereum, known as Blast, has officially launched its mainnet.
The platform currently holds approximately 469,000 ETH, 77.3 million USDC, 67.1 million USDT, 148,000 stETH, and 24.7 million DAI. With the mainnet now live, users can withdraw their funds.
Introduction to Blast
Blast was developed by Tieshun Roquerre, the founder of the NFT marketplace Blur. The platform aims to offer a native yield model for ether and stablecoins, promising 4% interest for ether and 5% for stablecoins.
The platform attracted over 180,000 community members and locked in over $2.3 billion in total value before the launch of the mainnet.
Before the mainnet launch, users observed an unofficial bridge to the platform, which drew comparisons to the events preceding the launch of Coinbase’s Layer 2 Base in early August 2023.
“Blast has collected over $2 billion in total value locked even before its mainnet launch, putting it just behind Layer 2 giants like Arbitrum One and OP Mainnet,” stated Arnold Toh, a blockchain research analyst.
Blast’s Early Access and Criticisms
Early access to Blast, which started in late November 2023, allowed users to begin earning yields through bridging and Blast Points. These points are rewards for bridging assets to other networks and referring users to the platform.
Some users suggested that the platform’s model resembled a Ponzi scheme, as individuals couldn’t withdraw their rewards until the mainnet launch. Roquerre, also known as Pacman, denied these allegations, stating that the yield is “not unsustainable” and is derived from the liquid staking protocol Lido and DeFi protocol MakerDAO.
In November 2023, Blast raised $20 million led by crypto-focused venture firms Paradigm and Standard Crypto. The tentative date for redeeming Blast Points is May 24.
Note: Larry Cermak, CEO of a renowned blockchain research firm, is an angel investor in Blast.
