Dear Bitruers,
Today, we are excited to share a new article about Blast L2, an innovative Ethereum Layer 2 (L2) scaling solution that addresses the scalability and efficiency limitations of the Ethereum mainnet. Be sure to follow Bitrue's Official Twitter and Telegram to stay updated!
Introduction
The Ethereum network has become increasingly congested due to its growing popularity and widespread adoption. This has resulted in high transaction fees, slow transaction processing times, and a less user-friendly experience. To address these challenges, Layer 2 scaling solutions have emerged, offering efficient and cost-effective alternatives to the Ethereum mainnet.
Blast L2 emerges as a groundbreaking Layer 2 solution on the Ethereum network, distinguishing itself as the first of its kind to offer native yield for both ETH and stablecoins. Developed by a team led by Pacman, the creator of the top NFT marketplace protocol Blur, Blast L2 is designed to address the depreciation of asset value in existing L2 solutions by introducing an innovative yield-generating mechanism.
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How Blast Works?
Blast L2 operates on the principle of auto rebasing, where ETH itself is natively rebasing on the L2. This feature was made possible following Ethereum’s Shanghai upgrade. The platform leverages ETH yield from L1 staking, initially through Lido, and automatically transfers it to users. For stablecoins like USDC, USDT, and DAI, when bridged to Blast, they are converted into USDB, Blast’s auto-rebasing stablecoin, with yield derived from MakerDAO’s on-chain T-Bill protocol.
What Makes Blast Unique?
The uniqueness of Blast L2 lies in its native yield feature, a first in the Layer 2 ecosystem. Unlike other L2s with a 0% baseline interest rate, Blast offers 4% yield for ETH and 5% for stablecoins. This approach not only combats asset depreciation but also enhances the overall value of assets over time. Additionally, Blast L2 is an EVM-compatible, optimistic rollup, ensuring compatibility and ease of use for developers and users accustomed to the Ethereum environment.
Tokenomics & Token Utility
While specific details on the tokenomics of Blast L2 (BLAST) are yet to be fully disclosed, the platform has introduced a unique incentive mechanism through its community airdrop. The airdrop is split between Early Access Members and Developers, encouraging participation and contribution to the ecosystem. Users earn airdrop points by bridging assets to Blast and inviting friends, with these points redeemable in future phases of the platform's rollout.
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