Blast – Layer-2 solution that helps improve scalability and performance for Ethereum
Blast, an Ethereum Layer 2 scaling solution, aims to solve the scalability challenges of the Ethereum network. It has attracted significant interest by securing a total value locked (TVL) of over $1.4 billion also fueling a growing user and application ecosystem.
Source: defillama
Blast is a differentiated solution with features including native yield for ETH and stablecoins, powered by auto-rebasing mechanisms, and collaboration with real-world asset protocols.
*Rebasing is the process of combining or moving a chain of commits onto a new base commit.
Blast's testnet went live in January 2024 ahead of the planned mainnet launch in February.
Key features and improvements
Native yield: Blast is unique in providing native yield on ETH and stablecoins, a feature not common in Layer 2 solutions. This is achieved through an automatic rebasing and accumulation mechanism. compatible with real-world asset-related protocols, aiming to enhance the value and efficiency of assets within its ecosystem.
Automatic rebasing of ETH: By leveraging the post-Shanghai upgrade capabilities of the Ethereum network, Blast allows for automatic growth of ETH balances through direct transfer of profits from L1 staking to users on L2. This feature is intended to ensure that the amount of ETH held in Blast continuously increases, reflecting the L1 staking yield.
T-Bill Yield for Stablecoins: Offering an auto-rebasing stablecoin, USDB, Blast provides stablecoin holders with a unique yield derived from real-world assets via the T-Bill protocol by MakerDAO.
Blast's airdrop and tokenomics event
Blast's planned airdrop in May 2024 aims to encourage community interaction and growth within the Blast ecosystem. A significant portion of this airdrop is reserved for developers participating in the Big Bang Competition and to attract community participation, promote liquidity, and expand the user base.
Incentives for developers and ecosystem growth
Big Bang Competition: Encourages developers to create apps on Blast, providing exposure to a large user base and TVL. Winners receive token rewards and promote their apps to Blast mainnet. Guidance and mentoring: Participants receive personal guidance from investors and advisors, increasing project success rates and integration into the Blast ecosystem
Strategic support and user engagement
With $20 million in funding from major backers including Paradigm and Standard Crypto, Blast is looking to establish itself as the leading Layer 2 solution. The platform also offers referral rewards and potential airdrop rewards to attract users and build a community.
Conclude
Blast's entry into Ethereum's Layer 2 space has created unique profit mechanisms and a community-driven approach. Its features, including automatic rebasing of ETH and T-Bill profits for stablecoins, provide a new option for developers and users. The focus on promoting community engagement through initiatives such as the Blast Airdrop and Big Bang Competition underscores the potential to contribute to Ethereum's scalability and DeFi innovation.
However, Blast faced some pushback from users and cryptocurrency developers after its initial launch in November 2023. Early investor Paradigm criticized Blast's decision to launch bridge before L2 and blocked withdrawals for three months, for setting a “bad precedent.” Blast co-founder Tieshun “Pacman” Roquerre has dismissed these complaints, calling them a “misunderstanding.”
