Blast is a Layer-2 solution that definitely differs from other L2 networks on Ethereum. The platform offers users native yield, which allows them to earn income simply by holding tokens in their wallet.
Currently, Blast is positioning itself as an ecosystem that allows contributors and users to receive native yield in ETH, USDC, USDT, and DAI. Moreover, Blast strives to not only provide users and developers with revenue but also interact with DeFi, SocialFi, games, NFT collections, and so on.
Today Notum will tell about what Blast Chain is, how it works, what its features are, and why it’s worth using it. Besides, we will also shed some light on Blast Points and the platform’s airdrop.
Blast: Essentials
Blast is the only layer 2 chain on Ethereum that introduced native yield for stablecoins and ETH. The main goal of the Blast team is to contribute and develop on-chain economics while offering the highest possible L2 revenue. Profitability on Blast is generated through ETH staking and RWA protocols. Thus, the rewards from these protocols are automatically passed back to the chain’s users.
Important! While The default interest rate on other L2s is 0%, Blast offers users 5% for stablecoins and 4% for ETH.
As stated, L2s currently have no yield, so the value of users' assets depreciates over time. Thus, there was a need to develop a new L2 from scratch to incorporate ETH and stablecoin yield.
«Ethereum provides 4% yield on ETH, while on-chain T-Bill protocols provide 5% on stablecoins. If users do not match or beat these rates, they are losing money» - Blast Docs.
Now Blast can be described as an EVM-compatible, optimism rollup that increases the underlying profitability for both users and developers. Its innovation is that this yield allows the creation of new business models for decentralized applications, which is currently not possible on other L2s.
Source: Blast Docs
Interesting fact! Blast mainnet went live on February 29, 2024 and was founded by the same team behind Blur, a popular NFT marketplace. Currently, Blast development is led by anonymous developer Pacman.
How Does Blast Work?
Blast operates using auto rebasing, which means ETH itself (not its staked and wrapped versions, such as WETH and STETH) is natively rebasing on the L2. It is also important to note that the Ethereum for EOAs balance is also automatically rebased. If smart contracts are opt-in for such rebasing, this greatly simplifies deploying decentralized apps on Blast without any changes. Simply put, users transact in ETH, and decentralized applications are built on top of ETH. Thus, Blast was created from scratch so that ETH itself is natively rebasing on the L2.
The platform's native stablecoin, USDB, also uses automatic rebasing. Similar to ETH, USDB is automatically rebasing for EOAs and smart contracts. However, it is worth noting that smart contracts can opt out of this rebasing.
Another important part of the Blast chain is layer 1 staking. To begin with, it is important to note that Blast only exists due to Ethereum’s Shanghai upgrade. Thus, ETH income from L1 staking is automatically transferred to users by moving ETH to L2.
Important! In the future, the Blast community will be able to complement or even completely replace Lido Blast-native solutions or other third-party protocols.
Also, speaking about Blast and the principles of its operation, one cannot fail to mention T-Bill Yield. Those users who bridge stablecoins receive in return the platform's auto-rebasing stablecoin (USDB). This stablecoin generates profitability largely thanks to MakerDAO’s on-chain T-Bill protocol. Moreover, users can exchange the USDB stablecoin for DAI when they switch back to Ethereum.
Interesting fact! The official website of the platform reports that in the future, Blast will be able to completely replace MakerDAO with its own solutions or other protocols.
The last point that is worth paying attention to when talking about Blast’s operating principles is gas revenue sharing. Unlike other L2s, which keep the gas income for themselves, the Blast crypto network returns net gas revenue to decentralized applications. This way, app developers can either keep the income for themselves or use it to subsidize gas fees for users.
Why Use Blast Chain?
Blast Chain is an innovative platform that offers users several distinctive features compared to its competitors:
- L2 with native yield. At the moment, Blast Chain is the only existing Ethereum layer 2 with native yield for both ETH and stablecoins. This means users can earn income simply by holding certain tokens in their wallets.
- Auto rebasing. ETH itself, as well as its balance for EOAs, is automatically rebasing. Moreover, smart contracts can also opt-in to this rebasing, which will make deploying existing dApps on Blast without any changes much easier.
- Gas revenue sharing. Unlike other L2s that keep gas fees for themselves, Blast returns gas revenue to decentralized applications.
- Native bridge. Blast has its own bridge allowing users to deposit or withdraw assets and bridge them across the Ethereum mainnet.
- Blast points. Using the native bridge platform, users receive not only income but also Blast Points. The more they bridge, the more points they earn.
BLAST Airdrop and Points
The BLAST crypto token airdrop is an important part of the ecosystem as it is designed to reward users who contribute to the growth and support of the platform. The airdrop has a point system to distribute tokens. Let’s look at both of them in more detail: Blast Points and Blast Gold.
Source: Blast Docs
Blast Points
50% of the airdrop is allocated to Blast Points, which means user wallets will automatically earn points for each block depending on the ETH/WETH/USDB balance. The display of points can be seen in the Blast.io Airdrop dashboard in real-time. Over time, Points earnings will increase due to the native yield on Blast. While a consistent amount of points is earned, USDB balances may vary.
Important! To increase points, users can also utilize chain’s native bridge more. In addition, they can receive 16% on top of any Points their invites earn, or 8% on top of invite’s invites earn.
It is worth noting that decentralized applications earn points at the same rate as wallets depending on their TVL. So by transferring ETH, WETH, or USDB from a wallet to dApps, these apps will start earning points based on what users transferred. It is important to point out that decentralized apps must return earned points to users, but to do so they must integrate with the Blast Points API. More information about Blast Points can be found here.
Blast Gold
The second half of the airdrop will be distributed via Blast Gold. Gold is going to be given to decentralized applications, and unlike points, it is distributed manually. Users can also visit the Blast.io Airdrop Page to see which dApps have received Gold.
“The Blast incentives committee will distribute Gold on a 2-3 week cadence and announce publicly once Gold has been distributed” - Blast Docs.
The main goal of Blast Gold is to be used as a growth driver for dApps. Thus, these decentralized applications must give away all their Gold Points to their users. To do this, integration with the Blast Points API is also required.
As with Blast Points, invites can earn users additional points. They will receive 16% on top of any Gold their invites earn, and 8% for invite’s invites. More information about Blast Gold is here.
Notum’s Verdict
Blast is a unique chain that stands out among other L2s primarily due to its own native yield feature. While most L2 chains prioritize transaction speed and scalability, Blast allows assets to generate revenue naturally. This innovative approach takes L2 platforms to the next level and makes Blast an innovator in the field.
When comparing Blast with its L2 competitors, such as Optimism and Arbitrum, it is worth noting that although they also have EVM compatibility and cheaper gas, Blast also offers native yield, shared gas revenue, as well as substantial incentives.
Moreover, Blast network encourages developers to transfer their projects to Blast, since the chain has committed to distribute 100% of its gas fee revenues to developers. Also, by transferring their projects to Blast, developers get a chance to receive a distribution of the BLAST airdrop. Thus, the strategy chosen by Blast not only stimulates the development of the ecosystem but also connects developers with the success of the platform, involving them in interaction with Blast.
Disclaimer: Notum does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Cryptocurrency is subject to market risk. Please do your own research and trade with caution.