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

Blur (BLUR) NFT marketplace laminitis Pacman has launched a caller Ethereum (ETH) layer-2 network, Blast, designed to alteration its users to gain “native yields.”

In a Nov. 20 statement, the protocol explained however its caller attack differentiates it from different layer-2 networks. According to the team, Blast is an Ethereum Virtual Machine (EVM)-compatible, optimistic rollup that raises the baseline output for users and developers without changing the acquisition crypto-natives expect. The protocol offers users a 4% output for ETH and 5% for stablecoins similar USDC.

“Blast output comes from Ethereum staking and real-world assets protocols. The output from these decentralized protocols is passed backmost to Blast users automatically.”

Though the mainnet motorboat is scheduled for February 2024, users tin earn Blast Points erstwhile they invitation others to the protocol.

Blast raised $20 cardinal successful a backing circular led by task superior steadfast Paradigm and Standard Crypto.

Data from CryptoSlate shows that the web motorboat has boosted BLUR’s terms by much than 5% during the past 24 hours to $0.35888 arsenic of property time.

Blast’s attack draws criticism.

Meanwhile, Blast’s attack has drawn disapproval from respective crypto stakeholders for its Ponzi-like structure.

Crypto entrepreneur T3chman described the blockchain web arsenic “simply different pyramid/ponzi strategy orchestrated by Paradigm to drain liquidity from Web3″ and warned the assemblage to debar it.

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

Adam Cochran, a spouse astatine Cinneamhain Ventures, characterized Blast arsenic a level with one-way deposits. According to him, Blast operates arsenic a multisig vault depositing assets into Lido and Maker for yield, offering ‘points’ for an unreleased L2, with nary existent exit strategy.

Crypto developer Sisyphus added that the Blast ‘bridge’ remains a closed declaration owned by a 5-person multisig without an existing L2.

Meanwhile, Defi Maestro, a contributor to Mantle Network, noted that the layer-2 “chain volition apt beryllium heavy reliant connected BLAST padded emissions to clasp full value-locked post-launch.” 

“BLAST feels similar a L2 reward token to incentivize BLUR holders,” DeFi Maestro added.

However, contempt the disapproval surrounding the project, its attack has attracted inflows of nearly $50 million, including astir $40 cardinal successful ETH staked connected Lido and astir $6.5 cardinal connected Maker.

The station Blast Layer-2 web motorboat draws some involvement and disapproval implicit imaginable output model appeared archetypal connected CryptoSlate.