Blast hits $300M in TVL, but what should you know?

November 24, 2023 02:24 AM AEDT | By Invezz

Blast hits $300M in TVL, but what should you know? — Image source: Invezz

Is Blast an L2?

Blast, which revealed a $20 million backing from investment firms Paradigm and Standard Crypto, launched on November 21. It claims to be the only L2 on Ethereum that offers native yield for Ether and stablecoins.

But Blast is currently deposit-only, with this one-way functionality set to be in place until February 2024 when the protocol’s mainnet is expected to go live. What this means is that for now, users have no way to withdraw funds until then.

Again Blast’s restaking of user assets on Lido with control of the contract with fiver signer addresses has attracted criticism. According to Polygon engineer Jarrod Watts, the five signer wallets of the contract are unfortunately all new addresses whose identities are currently unknown.

“Blast is not an L2,”Watts noted in a thread on X, adding that what the smart contract does is to accept user funds and stake them in protocols like Lido. He added:

“There’s no testnet, no transactions, no bridge, no rollup, and no sending of transaction data to Ethereum. It’s not an L2.”

Users who send money to the contract as “basically trusting 3-5 strangers”, noting the risks associated with this.

The post Blast hits $300M in TVL, but what should you know? appeared first on Invezz

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