Blast is the latest layer-2 on Ethereum, receiving investments from significant funds and well-known figures in the crypto community, and intends to increase interest rates for ETH and stablecoin holders.

The layer-2 project announced on November 21 that it had successfully raised $30 million in financing from Paradigm, Standard Crypto, and eGirl Capital. Many well-known cryptocurrency community members also participated in the announcement on Twitter.

This layer-2 is compatible with the EVM to facilitate communication with investors and decentralized applications on Ethereum. It is based on Optimistic Rollups technology, akin to Arbitrum and Optimism. Pacman, the creator of the NFT platform Blur, and former MakerDAO staff members, MIT graduates, and Seoul National University alumni make up the development team for the Layer-2 project.

More About The Layer-2 Ethereum Project

The New Ethereum Layer 2 Project, Blast, Intends to Increase Interest Rates for ETH and Stablecoin

The Ethereum layer-2 is designed to encourage Ethereum (ETH) network interest-bearing staking activities. According to the project, it will be the first layer-2 solution to offer extra interest to entice users to hold ETH rather than keep their money on layer-1, even though Ethereum already offers a 3-4% baseline interest rate through ETH staking.

Users’ balances on the layer-2 project will increase as they hold assets, and interest will be computed. ETH sent via Blast will be utilized to partake in Lido’s ETH staking program, after which users will split block rewards.

The project also enables sending popular stablecoins like USDT, USDC, and DAI. Profits will be returned to consumers using a stablecoin named USDB. Stablecoins will be used to send on protocols holding US Treasury bonds, such as MakerDAO.

For users who accept invitations, the project intends to provide a limited experience portal with incentives in the form of Blast Points and current interest rates of 4% for ETH and 5% for stablecoins.

Blast Will Soon Launch Testnet

The New Ethereum Layer 2 Project, Blast, Intends to Increase Interest Rates for ETH and Stablecoin

The project plans to launch the testnet in January 2024 and the mainnet in February 2024. Point prizes will be used to determine the project’s token airdrop criteria. The number of people invited to experience Layer-2 and the amount crossed from Ethereum to Blast can be used to accrue Points.

50% of the airdrop will go to dApp developers on the platform, and 50% will go to early users. dApps will receive the airdrop when the testnet launches in January, and users cannot exchange points for tokens until May 2024.

As of 9:30 AM on November 21, nearly $5 million in ETH and stablecoins have been bridged from Ethereum to Blast.”

In conclusion, the Layer-2’s request for $20 million in capital suggests ambitious plans to scale their operations.

The proposed increase in interest rates for ETH and stablecoin holders is a strategic move to attract and retain investors. However, the success of such a proposal would depend on market dynamics and the perceived value proposition for users.

We strongly suggest that investors carefully assess the potential risks and rewards before considering participation.