Video Overview
Created by Taiki, the video discusses the intricacies of crypto farming, particularly focusing on a new layer two solution called Blast, which has been backed by Paradigm and other influencers. For those interested in the full discourse, you can watch the full video.
Notable Quotes
- “When Blast was first announced, they raised $20 million on paradigm… it’s the layer two with native yield.”
- “It’s just really upsetting from a liquid market participator’s perspective because what are we supposed to do?”
- “I have a personal mandate to not participate in seed or angel deals, aka the private markets.”
- “There’s a lot of market inefficiencies when it comes to these layer 2s.”
- “If all this Ether were staked, earning 4% hypothetically… it would mean that Arbitrum could be making $100 million in Ether per year.”
- “Why don’t we just stake all the stable coins? Why don’t we just stake all the ether and then just give out that yield to its users?”
- “I think if Blast didn’t have all these influencer investors… it’s just controversial because… all these influencers are going to be making so much money.”
- “It’s kind of like a forced diamond hands right because… all the eth is gonna be staked with Lido, so it’s earning 3.6% I believe right now.”
- “I think a lot of layer ones in L2’s, their valuation models, it’s somewhat correlated with TVL.”
- “I think a year, two, three years from now, I think a lot of layer twos, a lot of projects are going to just look like this.”
Discussion Highlights
- Blast, a layer two solution with native yield, raised significant funds from Paradigm and has been a topic of controversy due to influencer investments.
- Market inefficiencies in layer 2 solutions, such as unutilized assets in bridge contracts, are highlighted as opportunities for earning yield.
- The concept of staking stable coins and Ether in layer two solutions like Blast to distribute yield to users is discussed.
- Concerns about the lockup period for funds sent to Blast and the potential opportunity costs are addressed.
- The potential for Blast’s model to become a standard for layer two solutions in the future is considered.
Controversial or Unique Ideas
- The initial disgust and subsequent acceptance of Blast by the creator, highlighting the emotional rollercoaster often associated with new crypto projects.
- The ethical stance of the creator against participating in private deals to avoid conflicts of interest, despite the potential for profit.
- The idea of exploiting market inefficiencies by staking assets in bridge contracts, which could be a significant source of passive income for layer two solutions.
- The gamification strategies used by Blast to engage users, despite the creator’s initial skepticism.
- The debate over whether the involvement of influencers and their potential profits from Blast is justifiable or detrimental to the crypto ecosystem.
Blast Layer Two: The Controversial Yield Farming Sensation
Alright, let’s cut the bullshit and dive into the meat of things with Blast Layer Two. This thing’s backed by Paradigm and a bunch of influencers, and when I first laid eyes on it, I was pretty fucking disgusted. But, you know me, I had to give it a second look, and I’ve got some thoughts to share.
So, here’s the deal: Blast raised a cool $20 million from Paradigm, and it’s a Layer Two with native yield. But the part that pisses everyone off is the usual suspects investing in it. These guys don’t mess with liquid markets; they just cash in on private deals and profit from their followers. Now, I’m not saying they’re bad people – hell, I’m friendly with some of them – but from a liquid market participant’s perspective, it’s a kick in the nuts.
Despite the bullshit, as a liquid market participator, I have no fucking choice but to farm this thing. And let me tell you, it’s exhausting. I even wrote a bullish piece on it and got a ton of hate. People think I’m shilling or got free tokens, which is bullshit. I don’t do paid promotions, and I’ve got a strict policy against participating in seed or angel deals because of the conflict of interest – I’m all about ethics, folks.
Now, the idea behind Blast is simple: you bridge to their Layer Two, and you get points. I’ve only bridged 0.1 ETH and got 1,800 points. I’m not even dropping my referral link because I don’t give a shit about making money off you guys. The thing is, there’s a ton of market inefficiencies with these Layer Twos. Take the Arbitrum bridge, for example – it’s got $2.5 billion just sitting there. If that was staked, earning 4%, Arbitrum could be raking in $100 million in ETH per year. But they’re not, and Blast wants to change that by staking all the stable coins and ETH and giving the yield to its users. On paper, it’s a solid idea.
But here’s the catch: there’s a three to four-month lockup. So if you’ve got ETH or stables you won’t need for a bit, it might be worth bridging. It’s like forced diamond hands because all the ETH will be staked with Lido, earning 3.6%, and stable coins will be earning 5%. There’s an opportunity cost, sure, but there’s already half a billion dollars in this thing, so you’ve got to wonder if it’s worth it.
And let’s not forget the gamification aspect. They’ve got this squad thing that’s just there to keep you coming back. It’s smart, and the developer behind it, Pac-Man, is a solid builder. But the market’s a bit nuts, with futures of Blast Layer Two trading as if it’s already a thing. It’s illiquid as hell, but the implied valuation is around $4.5 billion, which is fucking dumb because there’s no Layer Two yet.
From a farming perspective, if you’ve got ETH or stables you’re holding onto, why not bridge some over and maybe get a few hundred or thousand dollars in free Blast tokens after four months? The only real risk is if you send all your stable coins over and then a bull market hits and you want to buy – you’re stuck.
So, that’s my take on Blast. It’s controversial, sure, but from a farming angle, it makes sense. And as for the rest of the Arbitrum ecosystem, there are plenty of farms to consider. You’ve got Quenta with its wash trading and incentives, HyperLiquid with its LP vault, and GMX for those who want to LP and get bonus tokens. It’s all about finding the right opportunities and being flexible with your portfolio.
And that’s it from me. If you’re into farming and can handle a lockup, give Blast a shot. Just remember, it’s not about the influencers or the VCs; it’s about making smart moves for your own portfolio. Happy farming, and don’t forget to stay humble out there.
