What We Know About Blast So Far

By  Ayush Sharma February 29, 2024

Image for What We Know About Blast So Far

Summary

  • Blast is officially launching today, 2/29, with over $2B in liquidity being unlocked from depositors.
  • There has been some controversy over the last few months regarding the structure of airdrop farming via deposits, but sentiment at time of launch is extremely bullish.

Background

With Blast's Mainnet launch day finally here, we wanted to go over everything we know about the hyped chain so far. Blast was unveiled in November of last year as a Layer 2 chain built on top of Ethereum with integrated native yield for users. With its unique features, controversies, and rapid growth, Blast has managed to capture tons of attention. Let's dive into the ins and outs of this project.

Blast emerged from the mind of Tieshun Roquerre, better known as "Pacman" in the crypto world. Pacman, the founder of the NFT marketplace Blur, envisioned a Layer 2 network that could address Ethereum's scalability issues while providing native yield for assets. The project attracted significant attention due to its association with Blur and Pacman's reputation as an influential figure. In addition to that, Blast secured over $20 million in funding through a round led by Paradigm and Standard Crypto, solidifying its potential.

Blast Points

Blast's innovative design centers around its BLAST points. Depositors earn these points alongside their transferred Ether. Notably, Blast natively participates in ETH staking, and the staking yield is passed back to users and dApps building on Blast. Over time, deposited Ether grows automatically, creating a dynamic yield system. Blast offers an interest rate of 4% on ETH and 5% on stablecoins like USDC, USDT, and DAI. They announced the Mainnet Launch on 29th of February with the airdrop to depositors coming later in May.

However, some were unhappy about certain aspects of Blast and controversies arose:

  1. No Actual L2 Chain Yet: All the funds deposited into Blast have been placed into a multisig on the Ethereum chain, leading to concerns about the lack of a working product and the safety of funds in the 3/5 multisig.
  2. Pyramid Scheme Concerns: Some critics likened Blast's point campaign mechanics to a pyramid scheme due to its referral-based reward system. Blast was one of the first projects to popularize the points and referral program, setting a standard that many projects are now following.
  3. Lido Reliance: Blast's reliance on Lido for ETH staking raised questions about its uniqueness compared to staking in Lido, as well as concerns about centralization.
  4. Paradigm's Critique: Another point of attention was how their lead investor, Paradigm, expressed their opinion about the campaigns and marketing strategies.

Despite all the concerns and controversies, Blast persevered as FUD turned into fuel, with more people bridging their ETH and stablecoin to Blast as it Blast-ed past the $2 billion TVL mark. As the mainnet date approached, Blast launched the Testnet and a "Blast Big Bang Competition" in January to encourage projects to build on Blast. As a result, we have seen hundreds of great projects being built on Blast, some of which may also do their own airdrops for users who bridged to Blast. This could translate to a lot of activity in its early days with the $2B+ liquidity on chain and multiple great projects building there. It will be interesting to see what other things Blast introduces after the mainnet launch, encouraging users to keep their funds on the platform after the airdrops are over. We believe it's not too late for Blast airdrops, as they are scheduled for May and may reward users actively participating on the Mainnet, possibly as a first phase of multiple airdrops. Additionally, projects will be running their own campaigns and airdrop systems, so it will be interesting to see how everything unfolds and how the users will like it there.

Will Blast live up to expectations? We'll revisit this article in a few months to see how it ages.