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Ethereum Layer 2 Pulls $30M Post Bridge Launch

New Ethereum Layer 2 Blast Attracts $30M Hours After Bridge Goes Live

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272 Listen to this article Investors swiftly transferred more than $30 million in ether and stablecoins to Blast, a newly […]

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Investors swiftly transferred more than $30 million in ether and stablecoins to Blast, a newly launched Ethereum Layer 2 network, shortly after its Monday debut. This influx underscores the robust demand for Layer 2 networks, which aim to alleviate issues related to speed, cost, and scalability on layer 1 blockchains like Ethereum. Bridges, facilitating token transfers across different networks, played a pivotal role in this rapid adoption.

Blast’s unique design has contributed to its appeal, allowing depositors to earn yields on transferred ether along with BLAST points. Blast actively engages in ETH staking, and the staking yield is distributed to users and decentralized applications (dapps) on the Layer 2. The platform has been reimagined to enable automatic compounding, ensuring that an initial 1 ETH in a user’s wallet on Blast grows over time.

While users await the mainnet launch in February for withdrawals and on-chain activities, Blast operates on an invite-only basis, requiring a code from invited users for access. BLAST points, earned by users, can be redeemed starting in May.

Among the bridged funds, over $19 million in ether has been staked on Lido, earning up to a 4% annualized yield. Another $3 million is on Maker, with a smaller portion of $150,000 in dai (DAI) stablecoins idle in the wallet. Stablecoin users who bridge their assets receive Blast’s auto-rebasing stablecoin, USDB. USDB’s yield is generated through the on-chain T-Bill protocol maintained by MakerDAO.

Blast successfully raised over $20 million in a funding round led by Paradigm and Standard Crypto. The project is led by the pseudonymous figurehead @PacmanBlur, co-founder of the NFT marketplace Blur. @PacmanBlur mentioned in a separate post that Blast is an extension of the Blur ecosystem, providing users with the opportunity to earn yields on idle assets while enhancing the technical infrastructure for advanced NFT offerings.

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Following the Blast release, BLUR prices surged by 12% in the past 24 hours.

Frequently Asked Questions (FAQ):

1. What is Blast’s primary goal as an Ethereum Layer 2 network?

Blast aims to address issues related to speed, cost, and scalability on layer 1 blockchains like Ethereum by providing a Layer 2 solution.

2. How does Blast’s unique design contribute to user benefits?

Blast’s design allows depositors to earn yields on transferred ether and accrue BLAST points, providing an incentive structure for users.

3. When can users withdraw funds and participate in on-chain activities on Blast?

Users must wait until the mainnet launch in February before being able to withdraw funds and engage in on-chain activities on Blast.

4. How does Blast handle stablecoins, and what is USDB?

Users who bridge stablecoins receive Blast’s auto-rebasing stablecoin, USDB, and the yield for USDB is derived from MakerDAO’s on-chain T-Bill protocol.

5. What led to the surge in BLUR prices following the release of Blast?

BLUR prices experienced a 12% surge in the past 24 hours following the release of Blast, likely influenced by the positive market response to the Layer 2 network’s launch.

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