Video Overview
This blog post provides an overview of a recent video by Wajahat discussing the new layer 2 solution called Blast, which is built on Ethereum. The video delves into the mechanics, the backing by major crypto figures, and the potential impact on the crypto ecosystem. To watch the discussion in full, visit the full video.
Notable Quotes
- “Crypto Twitter is going crazy about this.”
- “You could literally just leave your ETH on these chains or you leave your stables there, they will go up in value over time.”
- “It’s pretty crazy to think that just by having, being the king of airdrops and like this kind of these crazy tokenomics, you can kind of get a TVL bigger than most L2s around at the moment which is just insane.”
Discussion Highlights
- Blast is a new layer 2 Ethereum chain with native yield, backed by major crypto entities like Paradigm and Standard Crypto.
- Deposits into Blast are converted into yield-bearing assets, with ETH staked with Lido and stablecoins converted into DAI in MakerDAO’s DSR vaults.
- There’s an upcoming airdrop and token associated with Blast, adding to the hype and gamification aspect.
- Deposits are currently locked until at least February, with no withdrawals possible until then.
- Blast has already seen over $300 million in total value locked (TVL) and is expected to grow further.
- The platform is still in development, and despite not being fully operational, it has managed to attract significant interest and capital.
Controversial or Unique Ideas
- The concept of a layer 2 chain with native yield is relatively new and has sparked interest due to its potential to generate significant revenue through smart contract adjustments.
- The hype around the airdrop and tokenomics of Blast is seen as a driving force for its rapid TVL growth, which some may find controversial given the platform’s current non-operational status.
- The discussion raises questions about whether such developments are more bullish for Ethereum or for the protocols like Lido and MakerDAO that are integrated into the yield-generating mechanisms of Blast.
The Hype Around Blast: Ethereum’s New Layer 2 Chain
Alright, let’s cut to the chase. There’s this new layer 2 chain called Blast, and it’s the talk of the town—or should I say, the buzz of crypto Twitter. Everyone and their mother is depositing into this thing, and you’re probably wondering why the hell that is. Well, let me break it down for you.
First off, Blast isn’t just any layer 2; it’s an Ethereum chain that’s got native yield built right into its guts. That means your ETH and stablecoins aren’t just sitting there; they’re working their asses off, earning you some sweet APY. And who’s behind this? Only the big shots like Paradigm and Standard Crypto, plus a bunch of crypto Twitter celebrities like CL, Dijon Spartan, and Andrew Kang, to name a few.
Now, let’s talk mechanics. Your ETH gets staked with Lido, pulling in around 3-4% APY, while your stables get converted to DAI and chucked into Maker’s DSR vaults, which are good for about 5%. So, you’re basically earning passive income on your crypto, which is pretty damn sweet if you ask me.
But here’s the kicker: is this more bullish for Ethereum or for Maker and Lido? My money’s on the latter. Just look at the numbers. The Arbitrum Bridge alone could rake in $100 million in revenue annually if that ETH was staked. We’re talking about some serious cash flow with just a few tweaks at the contract level.
And of course, there’s the airdrop. Everyone loves free shit, and Blast is gamifying the hell out of this with points, leaderboards, and tokens. It’s like a damn video game, but with real money on the line. Just remember, it’s not a bridge yet, it’s a multisig contract, and you can’t withdraw until February at the earliest. So keep your pants on.
You want in? You’ll need an invite code, which you can scrounge up on Twitter. Deposit your ETH, USDT, or USDC, and start earning that yield. But you can’t touch it just yet, so don’t get too excited.
Now, let’s talk numbers. The total value locked (TVL) is through the roof, already hitting over 300 million, and it’s mostly in ETH. And this is all happening without even having a damn thing built yet. Just a contract and a promise, and people are throwing money at it like it’s the last chopper out of ‘Nam.
Some egghead named Zero X Raman did the math, and if just 5% of the total supply gets airdropped, you could be looking at a 40% APY on top of your base yields. But if the TVL keeps ballooning, that APY might shrink. Still, it’s a gamble that could pay off big time.
Personally, I haven’t thrown my hat in the ring yet. I like to stay liquid, and I’m not about to lock up my funds for months on end. But I’m keeping my eye on it because Blast is shaping up to be a game-changer, especially if they nail that native yield at the smart contract level for other apps. That’s a whole new playground for DeFi.
Bottom line: this is bullish as hell for Lido and Maker. So, that’s my two cents on Blast. Smash the like button if you dig what I’m saying, and hit subscribe for more straight talk like this. Catch you on the flip side.
