Ethereum

Blast

Blur

PAC Project

Blur (<a href="https://cryptoslate.com/coins/blur-token/" rel="noopener noreferrer nofollow">BLUR</a>) NFT marketplace founder Pacman has launched a new Ethereum (<a href="https://cryptoslate.com/coins/ethereum/" rel="noopener noreferrer nofollow">ETH</a>) <a href="https://cryptoslate.com/glossary/layer-2/" rel="noopener noreferrer nofollow">layer-2</a> network, Blast, designed to enable its users to earn “native yields.”
In a Nov. 20 <a href="https://twitter.com/Blast_L2/status/1726747087906464024" rel="noopener noreferrer nofollow">statement</a>, 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 that raises the baseline yield for users and developers without changing the experience crypto-natives expect. The protocol offers users a 4% yield for ETH and 5% for stablecoins like <a href="https://cryptoslate.com/coins/usd-coin/" rel="noopener noreferrer nofollow">USDC</a>.
<blockquote>
 “Blast yield comes from Ethereum staking and real-world assets protocols. The yield from these decentralized protocols is passed back to Blast users automatically.”
</blockquote>
Though the mainnet launch is <a href="https://x.com/Blast_L2/status/1726747138217144780?s=20" rel="noopener noreferrer nofollow">scheduled</a> for February 2024, users can <a href="https://x.com/Blast_L2/status/1726747132324102454?s=20" rel="noopener noreferrer nofollow">earn</a> Blast Points when they invite others to the protocol.
Blast <a href="https://x.com/Blast_L2/status/1726747123952263195?s=20" rel="noopener noreferrer nofollow">raised</a> $20 million in a funding round led by venture capital firm <a href="https://cryptoslate.com/companies/paradigm/" rel="noopener noreferrer nofollow">Paradigm</a> and Standard Crypto.
Data from CryptoSlate shows that the network launch has boosted BLUR’s price by more than 5% during the last 24 hours to $0.35888 as of press time.
<h2 class="s3" id="span-class-s7-blast-s-approach-draws-criticism-span">Blast’s approach draws criticism.</h2>
Meanwhile, Blast’s approach has drawn criticism from several crypto stakeholders for its Ponzi-like structure.
Crypto entrepreneur T3chman <a href="https://x.com/t3chman_eth/status/1726898462841848127?s=20" rel="noopener noreferrer nofollow">described</a> the blockchain network as “simply another pyramid/ponzi scheme orchestrated by Paradigm to drain liquidity from Web3″ and warned the community to avoid it.
Echoing T3chman’s view, Tytan, the co-founder of NFTY Finance, <a href="https://x.com/Tytaninc/status/1726849555281633565?s=20" rel="noopener noreferrer nofollow">raised</a> concerns about the Blast invite system, highlighting its resemblance to a pyramid scheme.
<a href="https://cryptoslate.com/people/adam-cochran/" rel="noopener noreferrer nofollow">Adam Cochran</a>, a partner at Cinneamhain Ventures, <a href="https://twitter.com/adamscochran/status/1726822318956335415?s=20" rel="noopener noreferrer nofollow">characterized</a> Blast as a platform with one-way deposits. According to him,&nbsp;Blast operates as a multisig vault depositing assets into Lido and Maker for yield, offering ‘points’ for an unreleased L2, with no current exit strategy.
Crypto developer Sisyphus <a href="https://x.com/0xSisyphus/status/1726761523257700476?s=20" rel="noopener noreferrer nofollow">added</a> that the Blast ‘bridge’ remains a closed contract owned by a 5-person multisig without an existing L2.
Meanwhile, Defi Maestro, a contributor to Mantle Network, noted that the layer-2 “chain will likely be heavily reliant on BLAST padded emissions to retain total value-locked post-launch.”&nbsp;
<blockquote>
 “BLAST feels like a L2 reward token to incentivize BLUR holders,” DeFi Maestro <a href="https://twitter.com/Defi_Maestro/status/1726848382394859864?s=20" rel="noopener noreferrer nofollow">added</a>.
</blockquote>
However, despite the criticism surrounding the project, its approach has attracted inflows of <a href="https://debank.com/profile/0x5f6ae08b8aeb7078cf2f96afb089d7c9f51da47d" rel="noopener noreferrer nofollow">nearly $50 million</a>, including around $40 million in ETH staked on Lido and approximately $6.5 million on Maker.
The post <a href="https://cryptoslate.com/blast-layer-2-network-launch-draws-both-interest-and-criticism-over-potential-yield-model/" rel="noopener noreferrer nofollow">Blast Layer-2 network launch draws both interest and criticism over potential yield model</a> appeared first on <a href="https://cryptoslate.com" rel="noopener noreferrer nofollow">CryptoSlate</a>.

Blast Layer-2 network launch draws both interest and criticism over potential yield model

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