Blast Ecosystem

What is Blast network

Blast is an EVM-compatible L2 solution based on Optimistic Rollups, providing a service to generate passive income from contributing assets to the Lido and MakerDAO protocols. Behind the project is a team from one of the largest NFT marketplaces Blur, led by Tishun Rokerr, better known as Pacman.

The Blast team took on a very difficult and extremely ambitious task. And indeed, right from the start, the project immediately performed “heavyweight”.

Based on the project description, the team declares “the development of onchain economy with the highest possible profitability”. In this way, the team clearly targeted the “uniqueness of Blast offer”, quite expressively differentiating the product from other L2s.

Investors of Blast

Note that Blast fundraising was relatively modest – just $20 million dollars.

However, a very strong case for the long-term life of the ecosystem can be seen among investors. For example, Blast key investors include:

• Paradigm
• Standard Crypto
• eGirl Capital and more

About key solutions of Blast blockchain

The startup Blast is developing a second-level blockchain, the Ethereum subnet. Its peculiarity is a built-in passive income function. At the current stage, users can deposit Ethereum and some stablecoins, receiving a deposit yield of 4-5% per annum. Such yields are not taken out of thin air – Blast developers re-deposit assets into the Spark lending protocol, which in turn earns on providing cryptocurrency loans.

However, the terms of the “missionary” turned out to be quite unusual and even somewhat extravagant. The bridge launch took place before the immediate deployment of the L2 solution. Blast also stated that the deposited assets would be locked until February 24, 2024.

Nevertheless, already in the first days after the launch of the bridge, the number of active users grew from a few hundred to almost 30,000, and the TVL indicator did not manage to update record values.

How does it work on Blast?

Blast yield model has two components – liquid Ethereum staking and deposits in MakerDAO.

The income from MakerDAO is denominated in USDB, a stablecoin from Bankor. The latter can be redeemed for USD Coin (USDC) during the transfer of assets back to Ethereum.

MakerDAO generates yields from several sources, but in the case of Blast, it is U.S. Treasury bonds. These are short-term debt securities with maturities ranging from one month to one year. Bills are traded at par value or at a discount.

Blast is designed to extend ETH layer 2 functionality by integrating its own yield mechanisms for both ETH and stablecoins.

• Automatic Rebasing
• L1 Staking Integration
• T-Bill yield
• Gas revenue sharing

Token BLAST

It is noteworthy that Blast became one of the first systems on the cryptocurrency market that directly announced the issuance and distribution of tokens to users using Airdrop. The developers also introduced a points system and put a strong emphasis on the referral system: users receive rewards for inviting new participants.

Such aggressive marketing has literally revolutionized the industry. Previously, so-called drop hunters – those who are on the hunt for cryptocurrency giveaways – acted blindly, by luck, trading on platforms for months or even years in the hope that they would give away tokens to early users in the future. Now, virtually every new project is following Blast lead and announcing an airdrop in advance, introducing a points system through a referral program.

Blast recently published the tokenomics project and held an airdrop for users. The team allocated a total of 50% BLAST tokens out of 100 billion BLAST tokens to the community. The coin allocation will occur in a linear fashion over three years, the developers noted. The remaining assets will be distributed as follows:

• 25.5%, or 25 billion BLAST to the main contributors.
• 16.5%, or 16 billion BLAST – to investors.
• 8%, or 8 billion BLAST – to the fund, which will spend assets on the development of the Blast ecosystem.

In addition, 17 billion of the total tokens will be distributed to early users as part of the first phase of Airdrop.

There is a vesting period for thousands of top wallets. Among them, coins will be distributed linearly over six months and depending on the activity in the network.

Conclusion

The community opinions about Blast are divided. Some people speak well of the project, while others criticize it for its technical implementation and “shouty” marketing campaign. Many also focused on the financial incentive model and profitability conditions.

In any case, time will tell the extent to which the project as a whole is viable and sustainable, and whether critics fears are exaggerated.