Explain the new L2 Blast: Auto Compound + "Points Airdrop" gameplay

Author: Golden Finance 0xxz

One more L2 joins the L2 War. This time it’s Blast founded by Pacman, the founder of NFT marketplace Blur.

On November 21, 2023, Optimistic Rollup-based Layer 2 network Blast closed a $20 million funding round consisting of Andrew Kang, co-founder of Paradigm, Standard Crypto, eGirl Capital, and Mechanism Capital, Hasu, Foobar, strategic advisor to Lido, and Larry, CEO of The Block Cermak and other investments.

According to Blast’s official tweet, Blast was jointly created by Pacman, the founder of NFT protocol Blur, and a team with rich experience from FAANG, MIT, Yale University, Nanyang Technological University, and Seoul National University. Team members have worked on some of the largest DeFi and Web3 protocols such as MakerDAO.

What is Blast

Blast introduces itself as an Ethereum L2 based on optimistic rollups, the only Ethereum L2 with native yields for Ethereum and stablecoins.

As the name suggests, it is that the user’s assets on Blast are automatically compounded. It is reported that Blast’s earnings come from Ethereum staking and the RWA protocol. The proceeds of these decentralized protocols are automatically returned to Blast users. The interest rate on Ethereum on Blast is 4% and the stablecoin is 5%. The default interest rate for other L2s is 0%.

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Why do you need Blast?

Blast said that with a 0% risk-free rate on existing L2s, it is time for users to depreciate in the value of their assets over time. Blast is the first L2 with native gains. On Blast, users’ balances are automatically compounded and additional Blast rewards are earned.

Ethereum now has a risk-free rate in the form of ETH staking. By staking, users can earn 3-4% yield from ETH, which alone siphons off $20 billion in liquidity.

Specifically, Blast natively participates in ETH staking, and the staking rewards will be returned to L2 users and dapps. Blast has redesigned L2 from the ground up so that if you have 1 ETH in your wallet on Blast, it will automatically grow to 1.04, 1.08, 1.12 ETH over time.

It’s not just ETH on Blast that earns yield. The same goes for stablecoins. When a user bridges stablecoins such as USDC, USDT, and DAI to Last, it is deposited into an on-chain Treasury protocol such as MakerDAO, and the proceeds are passed back to Blast users through Last’s automatic underlying stablecoin, USDB.

How Blast works

Automatic REBASE: Users trade on ETH. Dapps are built around ETH. Blast was designed from the ground up to be a native rebase of ETH on L2.

L1 staking: Blast will only be possible after Ethereum’s Shanghai upgrade this year. ETH yield from L1 staking, initially Lido, is automatically transferred to the user’s account via ETH re-re-based on L2.

T-BILL Earnings: Users who bridge stablecoins will receive USDB, Blast’s automatic Rebase stablecoin. USDB’s earnings come from MakerDAO’s on-chain T-Bill protocol. USDB can be exchanged for USDC when crossing back to Ethereum.

Carry out the “points + airdrop” gameplay to the end

Pacman, the founder of Blur, decided to carry out this gameplay to the end and continue to use it on Blast after using the “points + airdrop” gameplay to give Blur a great success in the NFT market.

Blast community airdrop will be divided into two parts: early members (50%) and developers (50%). Among them, the developer airdrop will begin in January 2024 at the launch of the Blast testnet.

On November 21, 2023, Blast Early Access has been launched, and Early Access is by invitation only. Users can bridge to Blast and invite friends, and everyone who joins will be rewarded with Blast points. Early Access members earn more points based on the number of bridges and guests.

Invited now, users will be able to earn yield (4% ETH + 5% for stablecoins) and Blast Points before the mainnet launches in February 2024.

Blast key time node

Early Access (Now): Earn + Blast Points

Mainnet (February 24, 2024):d app is live, and withdrawals are enabled

Airdrop (May 24, 2024): Blast points are exchanged for airdrops

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