{"id":197726,"date":"2023-11-21T18:26:44","date_gmt":"2023-11-21T12:56:44","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=197726"},"modified":"2023-11-21T18:26:44","modified_gmt":"2023-11-21T12:56:44","slug":"blast-layer-2-network-launch-draws-both-interest-and-criticism-over-potential-yield-model-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/blast-layer-2-network-launch-draws-both-interest-and-criticism-over-potential-yield-model-crypto-news\/","title":{"rendered":"Blast Layer-2 network launch draws both interest and criticism over potential yield model – Crypto News"},"content":{"rendered":"
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Blur (BLUR<\/a>) NFT marketplace founder Pacman has launched a new Ethereum (ETH<\/a>) layer-2<\/a> network, Blast, designed to enable its users to earn \u201cnative yields.\u201d<\/p>\n

In a Nov. 20 statement<\/a>, the protocol explained how its novel approach differentiates it from other layer-2 networks. According to the team, <\/span>Blast is an Ethereum Virtual Machine (EVM)-compatible, optimistic rollup that raises the baseline yield for users and developers without changing the experience crypto-natives expect. <\/span>The protocol offers users a 4% yield for ETH and 5% for stablecoins like USDC<\/a>.<\/p>\n

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\u201cBlast yield comes from Ethereum staking and real-world assets protocols. The yield from these decentralized protocols is passed back to Blast users automatically.\u201d<\/p>\n<\/blockquote>\n

Though the mainnet launch is <\/span>scheduled<\/span><\/a> for February 2024, users can <\/span>earn<\/span><\/a> Blast Points when they invite others to the protocol.<\/span><\/p>\n

Blast <\/span>raised<\/span><\/a> $20 million in a funding round led by venture capital firm Paradigm<\/a> and Standard Crypto.<\/span><\/p>\n

Data from CryptoSlate<\/em> shows that the network launch has boosted BLUR\u2019s price by more than 5% during the last 24 hours to $0.35888 as of press time.<\/span><\/p>\n

Blast\u2019s approach draws criticism.<\/span><\/h2>\n

Meanwhile, Blast\u2019s approach has drawn criticism from several crypto stakeholders for its Ponzi-like structure.<\/p>\n

Crypto entrepreneur T3chman described<\/a> the blockchain network as \u201csimply another pyramid\/ponzi scheme orchestrated by P<\/span>aradigm <\/span>to drain liquidity from Web3\u2033 and warned the community to avoid it.<\/p>\n

Echoing T3chman\u2019s view, Tytan, the co-founder of NFTY Finance, raised<\/a> concerns about the Blast invite system, highlighting its resemblance to a pyramid scheme.<\/p>\n

Adam Cochran<\/a>, a partner at Cinneamhain Ventures, characterized<\/a> Blast as a platform with one-way deposits. According to him,\u00a0Blast operates as a multisig vault depositing assets into Lido and Maker for yield, offering \u2018points\u2019 for an unreleased L2, with no current exit strategy.<\/p>\n

Crypto developer Sisyphus added<\/a> that the Blast \u2018bridge\u2019 remains a closed contract owned by a 5-person multisig without an existing L2.<\/p>\n

Meanwhile, Defi Maestro, a contributor to Mantle Network, noted that the layer-2 \u201cchain will likely be heavily reliant on <\/span>BLAST<\/span> padded emissions to retain total value-locked post-launch.\u201d\u00a0<\/span><\/p>\n

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\u201cBLAST<\/span> feels like a L2 reward token to incentivize <\/span>BLUR<\/span> holders,\u201d DeFi Maestro added<\/a>.<\/span><\/p>\n<\/blockquote>\n

However, despite the criticism surrounding the project, its approach has attracted inflows of nearly $50 million<\/a>, including around $40 million in ETH staked on Lido and approximately $6.5 million on Maker.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Blur (BLUR) NFT marketplace founder Pacman has launched a new Ethereum (ETH) layer-2 network, Blast, designed to enable its users to earn \u201cnative yields.\u201d In a Nov. 20 statement, the protocol explained how its novel approach differentiates it from other layer-2 networks. According to the team, Blast is an Ethereum Virtual Machine (EVM)-compatible, optimistic rollup […]<\/p>\n","protected":false},"author":2,"featured_media":197727,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-197726","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/197726","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=197726"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/197726\/revisions"}],"predecessor-version":[{"id":197733,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/197726\/revisions\/197733"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/197727"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=197726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=197726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=197726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}