What is BLAST?
Blast: Introducing Native Yield for ETH & Stablecoins
Blast (BLAST) is a Layer 2 (L2) scaling solution designed to improve the efficiency of Ethereum by addressing high transaction costs and slow processing speeds. Using optimistic rollup technology, Blast can process transactions off-chain while still benefiting from Ethereum's robust security, facilitating faster transactions and significantly lower gas fees.
Project Function
Blast’s primary function is to serve as an Ethereum L2 solution that optimizes transaction throughput while introducing a native yield mechanism. Its use of optimistic rollups allows for off-chain transaction processing, reducing congestion on the Ethereum network without sacrificing security. This results in faster, more cost-effective transactions.
What sets Blast apart from other Ethereum L2s is its unique yield generation mechanism. Blast claims to be the only Ethereum L2 that offers native yield for both ETH and stablecoins. Users can earn 4% yield on ETH and 5% on stablecoins, with rewards automatically distributed. These yields are generated through ETH staking and Real-World Asset (RWA) protocols, aiming to provide a sustainable and reliable income stream for participants.
In addition to its transaction scaling capabilities, Blast incorporates a revenue-sharing model where gas fee revenue is shared programmatically with developers. This is a key differentiator from other L2s, which typically retain gas revenue. Developers on Blast can either keep this revenue or use it to subsidize gas fees for their users, creating new business models and use cases.
Blast’s utility extends to various sectors, including DeFi, non-fungible tokens (NFTs), and the tokenization of real-world assets. The platform’s yield mechanism, combined with scalability and developer incentives, positions it to drive growth in the wider Web3 ecosystem. Additionally, Blast’s native stablecoin, USDB, automatically rebases, offering seamless integration for smart contracts and dapps without requiring modifications to existing code.
How Blast Works
Token Utility
The BLAST token plays a crucial role within the Blast ecosystem. It is used for paying transaction fees, staking, governance, and participating in platform incentives. BLAST token holders have governance rights, allowing them to vote on protocol upgrades.
In addition to governance, BLAST tokens are essential for distributing gas fee revenue. Unlike other L2s where gas fees are retained by the platform, Blast returns a portion of net gas revenue to dapp developers, giving them the ability to reinvest or subsidize gas fees for their users. This makes BLAST a vital component in sustaining Blast’s ecosystem of developers and users.
Moreover, BLAST underpins the platform’s yield distribution mechanism for ETH and stablecoins. Participation in incentives such as the Blast Airdrop, which rewards early users and developers, further drives engagement and growth within the community.
Why a New L2?
Following Ethereum’s Merge, the network provides a 4% yield on ETH, while on-chain T-Bill protocols offer a 5% yield on stablecoins. Without matching or exceeding these rates, users effectively lose purchasing power to inflation. However, current L2 solutions do not provide such yields. Blast is specifically designed to address this gap by incorporating ETH and stablecoin yield natively into its architecture. This foundational shift allows Blast to offer competitive yield while maintaining the same user experience expected by the Ethereum community.
By integrating these yields into its L2 framework, Blast not only enhances the user experience but also unlocks new business models for dapps.
About the Founders
Blast was co-founded by Tieshun Roquerre, also known as Pacman. Roquerre’s vision for Blast involves more than just scalability—he has integrated ETH staking and Real-World Asset protocols into the Layer 2 ecosystem, offering users and developers unique financial incentives.
Roquerre and the Blast team have also launched the Big Bang program, which provides funding and mentorship to developers building on the platform. This initiative is part of Blast’s larger mission to foster a community-driven ecosystem that empowers developers and promotes innovation within Web3.
Don’t invest in crypto unless you're prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 minutes to learn more.
