Blast’s TVL surpasses $400m as founder responds to community allegations

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The founder L2-solution Blast Tishun Rokerr, better known under the alias Pacman, responded to Ponzi-scheme fraud accusations against the project.

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1/ There’s a meme going around that Blast is a ponzi. The yield that Blast provides users can feel too good to be true, so this meme is understandable. But to put it simply, the yield Blast provides comes (initially) from Lido and MakerDAO.

Lido yield comes from ETH staking…

— Pacman | Blur + Blast (@PacmanBlur) November 24, 2023

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\n«I’ve seen many misunderstandings about Blast. While many of them are humorous memes, it’s important to clarify a few points», wrote he.

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Pacman acknowledged that the project’s yield can indeed seem \”too good to be true\”, but it has \”been hiding in plain sight\”. According to him, Blast democratizes it and makes it accessible to all.

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\n\”Originally the yield comes from Lido and MakerDAO. In Lido — from ETH staking, which is part of the Ethereum Proof-of-Stake consensus mechanism. […] In MakerDAO — from on-chain government bonds, which occupy a central place in the country’s economy. This yield is sustainable\”, explained Rokerr.

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He also dismissed rumors that Paradigm, which supported the project, was responsible for its launch. Blast is consulting with a firm for the technical design of the L2 solution. According to Pacman, Paradigm asked him to implement some changes after launch; they are under active consideration.

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\n«I’ve seen a lot of FUD about Blast’s invite rewards. … I don’t like marketing mechanics just for the sake of growth. … But the project would be nothing without its community. … If you use Blast and help make it a successful L2 solution by bringing friends, you are delivering real value and should receive a reward», Rokerr said.

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3/ Finally, I’ve seen a lot of FUD about Blast’s invite rewards. While I’d like to take credit, Blast’s invite system is not a new mechanism. Invite systems have been around for a long time.

I don’t like marketing mechanics just for the sake of \”growth\”. Given that, you may…

— Pacman | Blur + Blast (@PacmanBlur) November 24, 2023

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On November 24, Blast outlined the project’s multisig security model. They said, \”Nothing is safe 100%\”, even if it seems so.

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\n\u201cYou can get infinite audits for an immutable smart contract, but you can never be 100% sure that it is bug-free. If there are bugs in an immutable contract, that is a failure,\u201d the statement reads.

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You can get infinite audits for an immutable smart contract but you can never be 100% confident a smart contract is bug-free. If there are bugs in an immutable contract, you are dead in the water.

— Blast (@Blast_L2) November 24, 2023

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Experts also explained that upgradable smart contracts with time limits are vulnerable to exploits, so each L2 solution has a direct path to updates.

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\n\”Multisigs are used by second‑layer solutions such as Arbitrum, Optimism and Polygon, because they are very efficient when everything is done correctly\u201d, noted Blast.

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According to the specialists, this requires securing each multisig key in isolation from the others. All must be kept in separate cold wallets and managed by independent parties. The project said that Blast adheres to these standards.

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For Blast, each signer has exactly those properties. They are deeply technical engineers who have experience with high stakes applications ranging from financial applications to smart contracts.

— Blast (@Blast_L2) November 24, 2023

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On November 21, developers introduced Blast — an Ethereum-based L2 solution offering a passive yield of 4-5%. In four days, total value locked in the protocol reached $443 million. The team reported 52,836 users.

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Blast has reached $443 Million in TVL within 4 days.

52,836 community members are now earning yield (~4% for ETH and 5% for stables) + Blast Points. pic.twitter.com/yiakjeKlss

— Blast (@Blast_L2) November 24, 2023

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As previously noted, following Blast’s announcement and Blur’s listing on Binance, the Blur NFT marketplace token, also founded by Pacman, surged 88%.

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