Ethereum-based L2-network Blast raises over $1 billion in a month

The launch of the project’s mainnet will take place in February next year

26.12.2023 - 10:36

602

2 min

What’s new? The total locked value (TVL) of the Blast farming project has surpassed the $1 billion mark just over a month after its launch. Blast was unveiled by the Blur NFT marketplace team on November 21, and just five days later it had raised over $500 million, a record among both Layer 1 (L1) and Layer 2 (L2) blockchains. In comparison, the Arbitrum and Solana networks needed 13 and 25 days, respectively, to reach this mark.

DeFiLlama’s data

What else is known? Blast is an Ethereum blockchain-based L2 solution launched using Optimistic Rollup scaling technology by the Blur team, backed by $20 million in funding from venture capital firms Paradigm, Standard Crypto, and eGirl Capital.

The project is positioned as a one-of-a-kind solution with native returns in ETH and stablecoins. Thus, Blast users automatically become staking participants and earn income by depositing their funds in Lido and MakerDAO protocols.

The launch of the Blast mainnet is scheduled for February 24, 2024, until then withdrawal of funds from the protocol is impossible. Now the project is in early access mode by invitation only with rewards in Blast Points tokens and yields of 4% for ETH and 5% for stablecoins. Blast Points can be redeemed starting May 24, 2024.

Almost immediately after Blast’s launch, analysts from Polygon Labs and SlowMist stated that the project is not an L2 solution. And that it is simply a smart contract for accepting deposits and investing them in revenue-generating protocols, which is managed by five anonymous addresses. In response, the Blast team said it would take measures to increase defenses against the exploit.

Author: