Interest in the Ethereum layer-2 network Blast, set to launch in February next year, has led to an influx of funds.
Interest in the Ethereum layer-2 network Blast, set to launch in February next year, has led to an influx of funds. Within days of its announcement, the project has amassed over $405 million in total value locked (TVL), with significant growth anticipated.
Led by Tieshun "Pacman" Roquerre, co-founder of Blur, a prominent NFT marketplace, Blast intends to offer rewards to users who deposit crypto, primarily staked Ethereum (ETH) and stablecoins. Blast plans to retain user funds until its bridge goes live in February, raising security concerns.
However, critics have questioned Blast's model, with suggestions of it potentially resembling a Ponzi scheme. The project is also offering "risk-free" yields of 4% in ETH and 5% on stablecoins, alongside concerns about requiring multiple anonymous keys to execute transactions.
Pacman defended the project, highlighting that the attractive yield is derived from established decentralized finance projects like Lido and MakerDAO. However, skeptics argue that no form of staking is entirely "risk-free.”
Meanwhile, crypto venture capital firm Paradigm, a seed investor in Blast, has also voiced its criticism of Blast's marketing strategy and protocol execution, stating that the startup has "crossed lines" in both aspects. Paradigm expressed its disagreement with the decision to launch a bridge before the layer-2 network and the three-month withdrawal restriction imposed by Blast.
Dan Robinson, the head of research at Paradigm, mentioned that these actions set a negative precedent and undermine the work of a serious team. Robinson emphasized that Paradigm invests in independent founders, even if disagreements arise, but the firm takes its responsibility in the crypto ecosystem seriously and does not endorse such tactics.
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