Layer 2 Network Blast Raises $20 Million to Provide Native Income for Ethereum and Stablecoins
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Ethereum Layer 2 network Blast raised over $20 million in a funding round led by Paradigm and Standard Crypto among others.
Ethereum Layer 2 network Blast raised over $20 million in a funding round led by technology investment firm Paradigm and crypto venture capital firm Standard Crypto, among others. The new Layer 2 network aims to provide native income for Ether and stablecoins.
Blast is an EVM-compatible, optimistic rollup that raises the baseline yield for users and developers. Built by PacmanBlur, one of the co-founders of the NFT marketplace Blur, and a team with experience from MakerDAO, MIT, Yale and Seoul National University — the Layer 2 network has recently been launched and promises to go live on the mainnet in February.
Currently, Blast is invite-only, requiring a code from invited users to gain access. BLAST points can be redeemed starting in May.
Blast’s Unique Network Design
Blast promises users that their balances will automatically compound interest and earn additional Blast rewards. When a user cross-chains Ethereum or stablecoins, including USDC, USDT, and DAI, to Blast, they are deposited into an on-chain treasury protocol such as MakerDAO. Proceeds are then transferred back to Blast users through Blast’s automatic base stablecoin, USDB.
The Blast team commented on Twitter, saying, “Blast natively participates in ETH staking, and the staking yield is passed back to the L2’s users and dapps. We’ve redesigned the L2 from the ground up so that if you have 1 ETH in your wallet on Blast, over time, it grows to 1.04, 1.08, 1.12 ETH automatically.”
The substantial inflow from the investors underscores the high demand for Layer 2 networks or protocols operating on top of a Layer 1 blockchain, such as Ethereum. These solutions allow to address its most pressing challenges, including speed, cost, and scalability.
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