What is Blast?

What is Blast?

Blast is an Ethereum Layer 2 scaling solution with native yield mechanisms for ETH and stablecoins. It leverages auto-rebasing for ETH and its native stablecoin, USDB. This setup allows users and developers to earn higher baseline yields while holding assets onchain without needing to stack or lock assets, creating the potential for new business models for Dapps.

Using Optimism’s OP Stack architecture, Blast also features gas revenue sharing, redistributing net gas revenue back to Dapp developers. Supported by investors like Paradigm, Standard Crypto, eGirl Capital, Andrew Kang, Santiago, and Larry Cermak, Blast has over $1.5 billion in total value locked (TVL) and aims to transform the Layer 2 ecosystem with its yield-focused approach.

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How Does Blast Work?

Blast is designed to enhance Ethereum's Layer 2 functionality by integrating native yield mechanisms for both ETH and stablecoins. Here's a breakdown of how Blast works:

• Auto Rebasing: ETH and Blast's native stablecoin, USDB, automatically rebase, meaning their balances adjust periodically to reflect earned yields. This applies to both user accounts (EOAs) and smart contracts, though smart contracts can opt-out.
• L1 Staking Integration: Blast utilizes Ethereum’s staking yields, initially through Lido, to automatically increase the rebased ETH on the Layer 2 network.
• T-Bill Yield: USDB’s yield is derived from MakerDAO’s on-chain T-Bill protocol. When users bridge stablecoins to Blast, they receive USDB, which can later be redeemed for DAI.
• Gas Revenue Sharing: Unlike other Layer 2 solutions, Blast shares net gas revenue with Dapp developers, who can either keep it or use it to subsidize gas fees for their users.

This setup allows Blast to provide higher yields and greater incentives for both users and developers within the Ethereum ecosystem.

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Blast Tokenomics

Blast's tokenomics are structured to foster community engagement and long-term ecosystem growth. Here's a detailed breakdown:

• Total Supply: 100 billion BLAST tokens
• Token Address: 0xb1a5700fA2358173Fe465e6eA4Ff52E36e88E2ad

Token Allocation

• Community (50%): 50 billion tokens reserved for community incentives, unlocking linearly over three years from the Token Generation Event (TGE).
• Core Contributors (25.5%): 25.48 billion tokens allocated to core contributors with a four-year lockup. 25% unlocks one year post-TGE, with a linear monthly unlock thereafter.
• Investors (16.5%): 16.52 billion tokens for investors, following the same lockup schedule as core contributors.
• Blast Foundation (8%): 8 billion tokens reserved for critical infrastructure and ecosystem expansion, unlocking linearly over four years from the TGE.

Phase 1 Airdrop

• Blast Points (7%): 7 billion tokens rewarded to users who bridged ETH or USDB during Phase 1.
• Blast Gold (7%): 7 billion tokens allocated to users contributing to Dapp success.

Phase 2 Rewards

• Blast Points and Gold (10%): 10 billion tokens allocated for Phase 2, split equally between Blast Points and Blast Gold. Rewards are based on wallet balances and Dapp activity, with multipliers available for increased earnings.

This allocation strategy aims to drive user participation, reward contributions, and support sustainable ecosystem development.

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Who Created Blast?

Blast was built by @pacmanblur, the founder of Blur, a popular NFT marketplace. Since the release of the token, Blast has transitioned to community governance, although ownership remains heavily concentrated among early investors such as Paradigm, Standard Crypto, and Andrew Kang.

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Popular Apps on Blast

Blast has a burgeoning ecosystem of DeFi applications, with its TVL exceeding $1.5 billion. Here are some of the most popular apps by total value and users:

• Thruster: Blast's core liquidity and fair launch DEX, comparable to Uniswap in its ecosystem. It has over $400 million in TVL and $193 million in daily trading volume.
• Juice Finance: A leveraged farming protocol that allows users to maximize yield by using ETH as collateral to access 300% USDB leverage. Juice Finance has a TVL of $354 million.
• Hyperlock Finance: A yield and metagovernance protocol built on ThrusterFi and optimized for Blast. It boasts a TVL of $276.32 million.
• Wasabi: A leverage trading protocol for long, short, and earning on long tail assets like memecoins and NFTs. Wasabi has a TVL of $135.25 million.

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Bottom Line

In summary, Blast is revolutionizing Ethereum’s Layer 2 with innovative yield mechanisms and gas revenue sharing. By integrating auto-rebasing for ETH and USDB, and leveraging L1 staking yields, it offers compelling incentives for users and developers. 

Supported by major investors and a strategic tokenomics model, Blast is well-positioned to drive significant growth and innovation in the DeFi ecosystem.