Blast Layer-2 network launch draws both interest and criticism over potential yield model

Blur (BLUR) NFT market founder Pacman has launched a brand new Ethereum (ETH) layer-2 community, Blast, designed to allow its customers to earn “native yields.”

In a Nov. 20 statement, the protocol defined how its novel method differentiates it from different layer-2 networks. In accordance with the workforce, Blast is an Ethereum Digital Machine (EVM)-compatible, optimistic rollup that raises the baseline yield for customers and builders with out altering the expertise crypto-natives anticipate. The protocol gives customers a 4% yield for ETH and 5% for stablecoins like USDC.

“Blast yield comes from Ethereum staking and real-world belongings protocols. The yield from these decentralized protocols is handed again to Blast customers routinely.”

Although the mainnet launch is scheduled for February 2024, customers can earn Blast Factors once they invite others to the protocol.

Blast raised $20 million in a funding spherical led by enterprise capital agency Paradigm and Customary Crypto.

Knowledge from Crypto reveals that the community launch has boosted BLUR’s value by greater than 5% over the last 24 hours to $0.35888 as of press time.

Blast’s method attracts criticism.

In the meantime, Blast’s method has drawn criticism from a number of crypto stakeholders for its Ponzi-like construction.

Crypto entrepreneur T3chman described the blockchain community as “merely one other pyramid/ponzi scheme orchestrated by Paradigm to empty liquidity from Web3″ and warned the group to keep away from it.

Echoing T3chman’s view, Tytan, the co-founder of NFTY Finance, raised considerations concerning the Blast invite system, highlighting its resemblance to a pyramid scheme.

Adam Cochran, a companion at Cinneamhain Ventures, characterized Blast as a platform with one-way deposits. In accordance with him, Blast operates as a multisig vault depositing belongings into Lido and Maker for yield, providing ‘factors’ for an unreleased L2, with no present exit technique.

Crypto developer Sisyphus added that the Blast ‘bridge’ stays a closed contract owned by a 5-person multisig with out an current L2.

In the meantime, Defi Maestro, a contributor to Mantle Community, famous that the layer-2 “chain will probably be closely reliant on BLAST padded emissions to retain whole value-locked post-launch.” 

BLAST appears like a L2 reward token to incentivize BLUR holders,” DeFi Maestro added.

Nevertheless, regardless of the criticism surrounding the undertaking, its method has attracted inflows of nearly $50 million, together with round $40 million in ETH staked on Lido and roughly $6.5 million on Maker.

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