Blast, L2 with native yield

Blast, L2 with native yield. Here are the features of this new ecosystem and direct access to its official website.

Blast stands out as the sole Ethereum Layer 2 (L2) solution offering built-in yield functionality for both ETH and stablecoins.

Blast – introduction:

Blast’s yield is generated through ETH staking and RWA protocols, with the resulting returns automatically distributed to its users. In contrast to other Layer 2 solutions where the default interest rate is 0%, Blast offers a substantial 4% yield for ETH and 5% for stablecoins.

Following the merge, Ethereum now offers a 4% yield on ETH, while on-chain T-Bill protocols deliver a 5% yield on stablecoins. Users not achieving these rates are effectively losing money due to a form of inflation.

Current Layer 2 solutions lack this inherent yield. To natively integrate yield on both ETH and stablecoins, a fundamentally new Layer 2 solution, designed from scratch, is necessary. Blast, an EVM-compatible optimistic rollup, elevates the default yield for both users and developers, all while maintaining the user experience that those familiar with cryptocurrency expect.

This enhanced yield paves the way for the development of innovative business models for Dapps, offering possibilities not feasible on other L2 platforms.

How Blast works?

Auto Rebasing

ETH itself, not WETH, STETH, or any other ERC20, is natively rebasing on the L2. The ETH balance for EOAs is automatically rebasing. Smart contracts can opt-in to this rebasing, making it easy to existing Dapps to deploy on Blast without any changes.

USDB, Blast’s native stablecoin, is automatically rebasing as well. Like ETH on Blast, USDB is automatically rebasing for EOAs. USDB is also automatically rebasing for smart contracts. Smart contracts can opt-out from this rebasing.

L1 Staking

Blast’s inception was made feasible by the advancements introduced with Ethereum’s Shanghai upgrade. The yield generated from L1 ETH staking, initially through Lido, is seamlessly distributed to users on the L2 by rebasing ETH.

Looking ahead, the Blast community will be empowered to enhance or potentially completely substitute Lido with Blast-native solutions or alternative third-party protocols.

T-Bill Yield

Users who bridge stablecoins are provided with USDB, Blast’s automatically rebasing stablecoin. The yield for USDB is derived from MakerDAO’s on-chain T-Bill protocol. Upon bridging back to Ethereum, USDB can be redeemed for USDC.

Moving forward, the community will possess the capability to enhance or potentially entirely substitute MakerDAO with Blast-native solutions or alternative third-party protocols.

Gas Revenue Sharing

Other L2s keep revenue from gas fees for themselves. Blast gives net gas revenue back to Dapps programatically. Dapps developers can keep this revenue for themselves or use it to subsidize gas fees for users.