Ethereum L2 Network Blast Receives $20 Mln Upon Launch

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blast layer 2 solution

Ethereum’s latest Layer 2 network Blast, has swiftly directed over $20 million in ether and stablecoins via investors.

The Blast Layer 2 solution is designed to address the speed, cost, and scalability challenges faced by Ethereum’s Layer 1 blockchain. Bridges, acting as a blockchain-based channel, facilitates seamless token transfers between different networks.

Blast’s Unique Design Yields Generation and Innovation

Depositors on Blast can earn yields on transferred ether, coupled with BLAST points. This will add an inventive twist to the pre-existing Layer 2.

Staking returns are distributed back to users and decentralized apps (DApps) on the Layer 2 network as a result of the platform’s inherent participation in ETH staking. According to the firm, having 1 ETH in your Blast wallet will automatically expand to 1.04, 1.08, and 1.12 ETH over time.

However, access to the Blast network is currently “invite-only”, mandating a code from invited users. Withdrawals and on-chain activities will be accessible after the mainnet launch in February. Additionally, the accrued BLAST points can be redeemed starting in May.

In terms of money invested, more than $19 million in ether has been staked on Lido. This will provide investors with an annualized dividend of up to 4%. Another $3 million is on Maker, while a smaller chunk of $150,000 in DAI stablecoins is in the wallet awaiting action. Blast presents USDB, an auto-rebasing stablecoin, for users bridging stablecoins. The USDB yield is derived from MakerDAO’s on-chain T-Bill protocol.

Also Read: Bloomberg Analyst Slams SEC For Implicitly Accepting Ethereum As Commodity

Additional Funding Into Blast

Roquerre, the man behind the pseudonymous figurehead PacmanBlur and co-founder of the non-fungible token (NFT) marketplace Blur, reported a significant $40 million fundraising.

The funding will be used to build decentralized apps (DApps) on top of the platform. Most of the funds will be used to accelerate the progress of NFTs on the Ethereum blockchain.

As per investor Standard Crypto VC, TVL is an imperfect measuring tool, yet its broad acceptance warrants its examination. Perhaps, the most successful dApps have gathered billions of dollars in external user deposits across multiple categories, including crypto exchanges, lending platforms, perpetual contracts (perps), and social applications.

Additionally, Standard Crypto VC sees Blast and its connected dApps enforcing unique monetization models. Blast can monetize by collecting a percentage of the yield, removing the need for sequencing fees as a source of revenue, as per the firm. This mechanism, in particular, allows Blast to possibly refund gas fees to the dApps that generate them.

In response to this news, Blur’s native token, BLUR’s price rose by 12% to trade at $34.

Also Read: Chainlink Whale Accumulation on the Rise, LINK Price Rally to Continue

The post Ethereum L2 Network Blast Receives $20 Mln Upon Launch appeared first on CoinGape.

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