- Ethereum Layer 2 Blast has launched in early access, attracting over $30 million in bridged assets by offering native yield generation of 3-4% for ether and stablecoins
- Blast aims to provide interest rates unavailable on other Layer 2s by participating in activities like ether staking, though users currently cannot withdraw funds until mainnet launch
- Blast has faced criticisms around its referral scheme rewarding users for inviting others, which some compare to a pyramid scheme, and funds being controlled by a small multisig group for now
Ethereum Layer 2 Blast has gone live in early access following a $20 million raise from investors including Paradigm and Standard Crypto. Blast aims to offer native Layer 2 yield generation for ether and stablecoins, claiming to have already attracted over $30 million in bridged assets.
What Blast Offers
Blast says it will provide a baseline interest rate of 3-4% for users by participating in ether staking activities. This is compared to a 0% rate and asset depreciation on existing Layer 2s according to Blast. Stablecoin yields will also be available through depositing assets into on-chain protocols. Over $30 million has already bridged to Blast, including over 13,000 ETH.
Criticisms
Despite apparent demand, Blast has received some criticism. The referral scheme rewards members further up a leaderboard for inviting others. Some have compared this structure to a pyramid scheme. Users also currently cannot withdraw funds until the Blast mainnet launch in February, with funds held in a multi-sig wallet controlled by five people for now.
Conclusion
In conclusion, Ethereum Layer 2 Blast has launched an early version promising native yields but faces criticisms around incentives and centralization. The coming months will reveal whether it can deliver a decentralized platform for Layer 2 yields.
