Blast: A Layer 2 Solution Distributing Native Yield for ETH and Stablecoins

Blast, an Ethereum Layer 2 solution, is making waves in the crypto community with its unique integration of native yield for ETH and stablecoins.

Blast, an Ethereum Layer 2 (L2) solution, is designed to enhance baseline yields for users without altering the familiar Ethereum experience. A key aspect of Blast is its native yield integration for ETH and stablecoins.

This L2 solution aims to provide a baseline yield of 4% on ETH and 5% on stablecoins, realized through yield generation from decentralized sources like ETH staking and on-chain T-Bill protocols. The yield is then distributed directly to users.

Blast operates as an EVM-compatible, optimistic rollup, making it easier for users and developers to integrate with the L2 and benefit from the higher baseline yields. A standout feature is its auto-rebasing mechanism, which adjusts balances in user accounts to reflect accrued yield.

This mechanism is applied natively for Externally Owned Accounts (EOAs) and can be optionally enabled for smart contracts, allowing seamless integration with existing Decentralised Applications (DApps).

The yield generation is facilitated by Ethereum’s Layer 1 (L1) staking rewards, particularly through protocols like Lido, which automatically transfer yield to Blast users via the rebasing mechanism.

Additionally, users who bridge stablecoins to Blast receive USDB, a stablecoin whose yield is derived from MakerDAO’s on-chain T-Bill protocol. This ensures users benefit continuously from competitive yield rates, whether they hold ETH or stablecoins.

Another notable feature of Blast is its unique gas revenue sharing model. In contrast to other L2 solutions that retain gas fee revenue, Blast redistributes this revenue back to DApps programmatically.

This differs from the approach taken by L2 solutions like Arbitrum and Optimism, which use gas revenue to cover operating costs or burn the tokens. By sharing gas revenue with DApps, Blast enables a scenario where DApp developers can either keep the revenue or use it to subsidize gas fees for their users.

The gas revenue sharing model is designed to promote a more cost-effective and attractive environment for DApp usage, ultimately driving greater adoption and activity within the Web3 ecosystem.

The BLAST token serves multiple pivotal roles within the Blast ecosystem. It is essential for governance, allowing token holders to participate in decision-making processes regarding protocol upgrades and yield strategies.

This decentralized governance model ensures the community has a significant say in shaping the platform’s future direction. BLAST tokens are also crucial for staking within the ecosystem.

Users can stake their tokens to secure the network and earn rewards in return. This staking mechanism incentivizes users to contribute to the network’s security and helps maintain the ecosystem's overall health and stability.

Additionally, BLAST tokens facilitate various transactional activities within the ecosystem, such as paying for transaction fees on the Blast Layer 2 network. This ensures operations are cost-effective and efficient, given the high gas fees often associated with transactions on the Ethereum mainnet.

The transaction fees collected in BLAST tokens are redistributed within the ecosystem, supporting further development and incentivization. This stands in contrast to L2 solutions like Arbitrum and Optimism, where transaction fees are used to mint new tokens or as revenue for the operating team.

The Blast airdrop initiative is designed to reward early adopters and participants within the ecosystem. There are two types of points users can earn — Blast Points and Blast Gold.

Activities that contribute to earning Blast Points include maintaining balances in ETH, WETH, and USDB, or participating in DAp

The above is the detailed content of Blast: A Layer 2 Solution Distributing Native Yield for ETH and Stablecoins. For more information, please follow other related articles on the PHP Chinese website!