Pacman, founder of the Blur (BLUR) NFT marketplace, has launched a new layer 2 Ethereum (ETH) network, Blast, designed to allow its users to earn “native yields”.
In a November 20 statementthe protocol explained how its new approach differentiates it from other Layer 2 networks. According to the team, Blast is an optimistic rollup compatible with the Ethereum Virtual Machine (EVM) that increases base yield for users and developers without changing the experience expected by crypto-natives. The protocol offers users a yield of 4% for ETH and 5% for stablecoins like USDC.
“Explosive yield comes from Ethereum staking and real-world asset protocols. The performance of these decentralized protocols is automatically transmitted to Blast users.
Although the mainnet launch is program for February 2024, users can earn Blast Points when they invite others to the protocol.
Blast raised $20 million in a funding round led by venture capital firm Paradigm and Standard Crypto.
Data from CryptoSlate shows that the network launch caused the price of BLUR to rise by over 5% in the last 24 hours, to $0.35888 at the time of publication.
Blast’s approach draws criticism.
Echoing T3chman’s view, Tytan, the co-founder of NFTY Finance, raised concerns about the Blast invitation system, highlighting its resemblance to a pyramid scheme.
Adam Cochran, partner at Cinneamhain Ventures, characterized Blast as a platform with one-way deposits. According to him, Blast functions as a multisig vault depositing assets into Lido and Maker for yield, offering “points” for an unreleased L2, with no current exit strategy.
Hain will likely be heavily dependent on BLAST
“BLAST this looks like an L2 reward token to incentivize GET IN CHANGE holders”, DeFi Maestro added.
However, despite the criticism surrounding the project, its approach has attracted inflows of nearly $50 million, including around $40 million in ETH staked on Lido and around $6.5 million on Maker.