Blast L2 project raises $20 million from Paradigm and Standard Crypto

The Blast project has raised $20 million from Paradigm and Standard Crypto to build the “only L2-solution on Ethereum with native yield in ETH and stablecoins.”

Introducing Blast: The only Ethereum L2 with native yield for ETH and stablecoins.

We’ve raised $20m from @Paradigm and @StandardCrypto to build the L2 that helps you earn more.

Details on how to get early access at the end of the thread? pic.twitter.com/AYYmK8YFx4

— Blast (@Blast_L2) November 20, 2023

“Blast is built on the principle of markets’ drive toward efficiency. More precisely, liquidity flows to where it can obtain the highest yield,” noted by team representatives.

According to the developers, holders of ETH and stablecoins in the new network can participate natively in staking.

“We rebuilt L2 from scratch. So if your wallet on Blast has 1 ETH, over time it will automatically grow to 1.04 ETH, 1.08 ETH, 1.12 ETH,” emphasized by the developers.

When users transfer ETH and stablecoins USDC, USDT and DAI via the cross-chain bridge to the new network, the coins are deposited into on-chain protocols using treasury bills such as MakerDAO. Then the yield is returned to users through USDB, Blast’s stablecoin with automatic rebalancing.

The new blockchain is an EVM-compatible system that utilise Optimistic Rollups.

The Blast project was created by the founder of the Blur NFT marketplace under the pseudonym Pacman. The team includes alumni from MakerDAO, MIT, and Seoul National University.

Users can already use the official cross-chain bridge, but the mainnet launch and enabling withdrawals are planned for February 2024.

According to Nansen, more than $42 million in crypto assets have been transferred into the Blast ecosystem in under 24 hours.

Over $42.0M has already been blasted over to @Blast_L2 since they launched, and it’s not even been 24 hours…https://t.co/9pSFyf8c5k pic.twitter.com/UZt43JopmC

— Nansen ? (@nansen_ai) November 21, 2023

In August, the Base mainnet launched by Coinbase, a leading US exchange.