What is Blast?

Summary: Blast, a pioneering Ethereum Layer 2 platform, uniquely offers native yields for ETH and stablecoins, revolutionizing the L2 landscape. Utilizing the Ethereum Shanghai upgrade, it features auto rebasing for ETH and a T-Bill yield for stablecoins through USDB (Blast USD). This approach aims to boost market efficiency and asset value for users. 

Developed by @pacmanblur and backed by Paradigm, Blast represents a significant advancement in the Layer 2 ecosystem, focusing on enhanced yields and community-driven development. Currently, in its Early Access phase, Blast encourages user engagement and asset bridging with its ongoing airdrop campaign.

What is the Blast Layer 2?

Blast (@Blast_L2) is an innovative Ethereum Layer 2 (L2) platform that sets itself apart by providing native yields for ETH and stablecoins, a feature unique in the L2 space. This functionality prevents asset value depreciation, unlike other L2s with a 0% yield. Users on Blast benefit from automatic compounding of their balances, with yields of 4% on ETH and 5% on stablecoins.

Utilizing Ethereum’s Shanghai upgrade, Blast channels ETH yield from L1 staking, primarily through Lido, directly to users with a rebasing mechanism. It also offers USDB, an auto-rebasing stablecoin, yielding from MakerDAO's T-Bill protocol.

Focusing on market efficiency, Blast aims to attract liquidity by providing higher yields, akin to the risk-free interest rate in traditional finance. This strategy combats inflationary effects and engages the community in protocol evolution. Supported by a $20 million investment from key players like Paradigm and Standard Crypto, and crafted by a team with backgrounds in MakerDAO, MIT, and Yale, Blast is committed to enhancing the L2 experience

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How does Blast Work?

Blast is an EVM-based layer 2 protocol that offers native yield on ETH and stablecoins through the following mechanisms:

• Auto Rebasing for ETH: On Blast, ETH natively rebases, meaning users' ETH balances automatically grow over time. This is enabled by Ethereum's Shanghai upgrade, allowing the platform to transfer L1 staking yields (from sources like Lido) directly to users on the L2.
• T-Bill Yield for Stablecoins: For stablecoins, users receive USDB, Blast’s auto-rebasing stablecoin, upon bridging to the platform. The yield for USDB stems from real world assets through MakerDAO’s T-Bill protocol, providing a yield advantage for stablecoins on Blast. 

In summary, Blast integrates these features to offer enhanced yields for both ETH and stablecoin holders, setting it apart from other L2 solutions and integrating seamlessly with Ethereum's ecosystem.

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How Do I Get Started on Blast?

To get started on Blast, you would typically follow these steps:

1. Early Access Invitation: Blast's Early Access phase is by invitation only. You'll need an invite code from an existing user or through Blast's official channels to gain access.
2. Create an Account: Once you have the invite code, you must sign up and create an account on Blast. This process may involve providing some basic information and setting up security features like a password.
3. Bridge Assets: After setting up your account, you can bridge ETH and stablecoins like USDC, USDT, and DAI to the Blast platform. Bridging involves transferring your assets from the Ethereum mainnet (or another Layer 1 or Layer 2 network) to Blast. Please note assets can’t be bridged back until February 2024.
4. Earn Yield and Blast Points: By bridging assets to Blast, you automatically earn yield – 4% for ETH and 5% for stablecoins. Additionally, you'll earn Blast Points as part of the platform's airdrop campaign.
5. Participate and Engage: Engage with the platform by participating in community activities, exploring its features, and possibly inviting others if the platform allows, which may earn you additional Blast Points.
6. Stay Updated: Since Blast is in an early phase, it's important to stay informed about updates, especially concerning the Mainnet launch and the redemption of Blast Points, scheduled for later dates.

Remember, this process may vary slightly as Blast evolves, so it's important to refer to the latest instructions and updates provided by Blast through their official website or community channels.

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Does Blast Have a Token?

Blast has an active airdrop campaign where users can earn Blast Points for bridging assets to the layer 2 in beta. However, there is no explicit mention of a unique token specifically for Blast. The Blast Points earned through the airdrop campaign seem part of an incentive mechanism for early users who engage with the platform by bridging assets and inviting others. 

The exact nature of these Blast Points, whether they relate to a future token distribution or serve a different purpose within the Blast ecosystem, is not clearly defined in the provided information.

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Who Created Blast?

Blast was created by a team led by @pacmanblur, the founder of the popular NFT marketplace Blur. This team comprises individuals with diverse and impressive backgrounds, including experience from MakerDAO, MIT, Yale, Seoul National University, and other significant institutions and projects in the DeFi and Web3 sectors. Their collective expertise, particularly in Ethereum-based protocols, has been instrumental in the development and launch of Blast.

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Bottom Line

In summary, Blast stands out in the Ethereum Layer 2 space with its unique offering of native yields for ETH and stablecoins. It leverages Ethereum's Shanghai upgrade for features like auto rebasing for ETH and T-Bill yield for stablecoins, enhancing user asset values. Founded by a skilled team led by @pacmanblur, Blast embodies innovation and expertise, particularly in Ethereum-based protocols. As it grows, especially with its ongoing airdrop campaign, Blast is set to redefine user experience in the DeFi space, promising improved yields and a commitment to community-focused development.