Exploring Blast (BLAST): A Yield-Bearing Ethereum Layer 2 Solution

Blast,
an
Ethereum
Layer
2
solution,
is
making
waves
in
the
crypto
community
with
its
unique
integration
of
native
yield
for
ETH
and
stablecoins.
According
to

blog.bitfinex.com,
this
protocol
distributes
yield
from
decentralized
sources
like
ETH
staking
and
on-chain
T-Bill
protocols
directly
to
users,
offering
a
4%
yield
on
ETH
and
a
5%
yield
on
stablecoins.

Key
Features
of
Blast

Blast
operates
as
an
EVM-compatible,
optimistic
rollup,
making
it
easier
for
users
and
developers
to
benefit
from
higher
baseline
yields
without
altering
the
familiar
Ethereum
experience.
A
standout
feature
is
its
auto-rebasing
mechanism,
which
adjusts
balances
in
user
accounts
to
reflect
accrued
yield.
This
mechanism
is
applied
natively
for
Externally
Owned
Accounts
(EOAs)
and
can
be
optionally
enabled
for
smart
contracts,
allowing
seamless
integration
with
existing
Decentralised
Applications
(DApps).

The
yield
generation
is
facilitated
by
Ethereum’s
Layer
1
staking
rewards,
particularly
through
protocols
like
Lido,
which
automatically
transfer
yield
to
Blast
users
via
the
rebasing
mechanism.
Additionally,
users
who
bridge
stablecoins
to
Blast
receive
USDB,
a
stablecoin
whose
yield
is
derived
from
MakerDAO’s
on-chain
T-Bill
protocol.
This
ensures
users
benefit
continuously
from
competitive
yield
rates,
whether
they
hold
ETH
or
stablecoins.

Gas
Revenue
Sharing
Model

Another
notable
feature
of
Blast
is
its
unique
gas
revenue
sharing
model.
Unlike
other
Layer
2
solutions
that
retain
gas
fee
revenue,
Blast
redistributes
this
revenue
back
to
DApps
programmatically.
This
allows
DApp
developers
to
either
keep
the
revenue
or
use
it
to
subsidize
gas
fees
for
their
users,
promoting
a
more
cost-effective
and
attractive
environment
for
DApp
usage.

What
is
the
BLAST
Token?

The
BLAST
token
serves
multiple
pivotal
roles
within
the
Blast
ecosystem.
It
is
essential
for
governance,
allowing
token
holders
to
participate
in
decision-making
processes
regarding
protocol
upgrades
and
yield
strategies.
This
decentralized
governance
model
ensures
the
community
has
a
significant
say
in
shaping
the
platform’s
future.

BLAST
tokens
are
also
crucial
for
staking
within
the
ecosystem.
Users
can
stake
their
tokens
to
secure
the
network
and
earn
rewards
in
return.
This
staking
mechanism
incentivizes
users
to
contribute
to
the
network’s
security
and
helps
maintain
the
ecosystem’s
overall
health
and
stability.

Additionally,
BLAST
tokens
facilitate
various
transactional
activities
within
the
ecosystem,
such
as
paying
for
transaction
fees
on
the
Blast
Layer
2
network.
This
ensures
operations
are
cost-effective
and
efficient,
given
the
high
gas
fees
often
associated
with
transactions
on
the
Ethereum
mainnet.
The
transaction
fees
collected
in
BLAST
tokens
are
redistributed
within
the
ecosystem,
supporting
further
development
and
incentivization.

BLAST
Tokenomics

The
Blast
airdrop
initiative
rewards
early
adopters
and
participants
within
the
ecosystem.
Users
can
earn
Blast
Points
and
Blast
Gold
through
activities
like
maintaining
balances
in
ETH,
WETH,
and
USDB,
or
participating
in
DApps
on
the
platform.
Points
are
distributed
automatically
based
on
the
balance
held
in
users’
wallets
or
smart
contracts,
and
users
can
earn
multipliers
by
engaging
with
highlighted
DApps.

Despite
the
active
engagement
through
the
airdrop,
detailed
information
about
the
tokenomics
of
BLAST
is
still
pending.
Users
are
encouraged
to
join
the
Blast
community
to
stay
informed
about
the
latest
developments,
including
updates
on
the
airdrop
and
detailed
tokenomics.

How
to
Buy
BLAST

To
buy
BLAST
with
cryptocurrency,
log
in
to
your
Bitfinex
account,
go
to
the
Deposit
page,
choose
the
crypto
you
plan
to
buy
BLAST
with,
generate
a
deposit
address
on
the
Exchange
wallet,
and
send
the
crypto
to
the
generated
address.
Once
the
funds
arrive,
you
can
trade
them
for
BLAST.

To
buy
BLAST
with
fiat,
log
in
to
your
Bitfinex
account,
get
full
verification,
go
to
the
Deposit
page
under
the
Bank
Wire
menu,
choose
the
fiat
currency
for
your
deposit,
check
your
email
for
wire
details,
send
the
funds,
and
once
they
arrive,
you
can
use
them
to
buy
BLAST.

Blast
also
offers
mobile
options
for
on-the-go
purchases.

BLAST
Community
Channels

For
more
information
and
updates,
visit
the
Blast

website,
follow
them
on

X
(Twitter),
or
join
their

Discord
community.

Image
source:
Shutterstock