Discover Pacman's journey in crypto, from creating Blur to pioneering Points and now revolutionizing the L2 space with Blast. Dive into Blast's native yield, net gas revenue distribution, and the vision for the future of this innovative L2 platform. Explore the tech enthusiast's story, the evolution of financialized systems in crypto, and the importance of ERC 20 tokens as wrapped ETH. Get insights into transforming assets into yield-bearing units, innovative monetization strategies, and Blast's goal to become the most valuable L2 in the industry.
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Quick takeaways
Blast innovates by offering yield opportunities on Layer 2, addressing market gaps and fostering market efficiency.
Blast incentivizes users with yield-bearing mechanisms, optimizing asset utilization and enhancing ecosystem vibrancy.
Blast fills a void by providing compelling yield options on Layer 2, prioritizing user experience and ecosystem growth.
Blast differentiates with native yield options, creating new DeFi models and disruptive strategies in the Layer 2 space.
Blast's multi-sig security model aligns with industry standards, ensuring user fund safety and governance transparency.
Deep dives
Genesis of Blast
The idea for Blast stemmed from the founder's experience contributing to Blur and realizing the limitations in the Layer 2 market. With Blur being a successful project, the vision for Blast emerged from the need for more efficient Layer 2 solutions. An investigation into existing L2 options highlighted a lack of compelling differentiation for builders, prompting the creation of Blast to offer a yield-bearing Layer 2 solution.
Importance of Yield
Blast's inception was driven by the necessity to provide yield opportunities on Layer 2 solutions. Recognizing the significance of yield in attracting liquidity and fostering efficient markets, Blast aimed to address the lack of yield offerings seen on other L2 platforms. The project's focus on enabling users to earn yield on their investments reflects a commitment to aligning incentives and tapping into market efficiencies.
Efficiency and Utilization of Assets
A key motivation for Blast was the observation of inefficient asset utilization in existing pools, where large amounts of ETH were stagnant due to the inability to generate yield efficiently. Blast sought to reorient these assets by offering opportunities for yield generation, enhancing market efficiency and user engagement. By unlocking value through yield-bearing mechanisms, Blast aimed to optimize asset utilization and contribute to a more vibrant ecosystem.
Addressing Market Gaps
Blast's development also exemplified a response to market gaps, particularly the underutilization of yield opportunities on Layer 2 networks. By identifying the lack of compelling yield options for users and builders on existing L2 solutions, Blast aimed to fill this void and provide a more comprehensive and efficient platform. The project's approach was centered on enhancing user experience, incentivizing participation, and fostering a robust ecosystem by offering native yield options.
Value of Native Yield and Novel Business Models
Enabling native yield in Layer 2 systems offers various opportunities. Users can earn more seamlessly, while developers can explore new DeFi models. Blast's focus on native yield led to unique business models differentiating it from other Layer 2 solutions. The potential for disruptive approaches like monetizing yield instead of trading fees highlights the value of innovative strategies.
Yield-Bearing Assets on Blast
On Blast, ETH becomes yield-bearing once moved, increasing annually without additional user action. Additionally, stablecoins like USDC become yield-bearing in the form of USCB, which earns a 15% interest rate sourced from MakerDAO's DSR. Blast's mechanism creates a seamless yield experience while providing options for diversified yield-bearing assets.
Security and Governance in Blast's Ecosystem
Blast utilizes a familiar Layer 2 security model with a multi-sig setup for upgrades, similar to other L2 solutions. While facing initial scrutiny, Blast's security profile aligns with industry standards, ensuring the safety of user funds. Governance plays a role in determining security protocols, while Blast remains committed to providing value and retaining user trust.
Competition and Growth Potential in Blast Ecosystem
The Big Bang competition propelled Blast's ecosystem growth, attracting native builders developing innovative applications. Notable categories include Decks, lending protocols, gaming, and social finance, driving TVL growth and user engagement. Blast's modular approach to providing native yield and encouraging new business models positions it for continued expansion and competition in the Layer 2 ecosystem.
Building Value for End Users and Developers
Pac-Man emphasizes the importance of creating unique, value-driven solutions for users and stakeholders. The focus on offering differentiated benefits and user-centric innovations defines success for emerging builders. Providing net value and exploring novel approaches remains crucial for sustained growth and impact in the evolving crypto landscape.
------ Pacman is one of the most interesting builders in crypto right now. After creating Blur, a disruptive NFT exchange, the crypto wonder kid is targeting the L2 space with his new yield bearing L2 called Blast.
In this episode, we cover Pacman’s story, how he built Blur, how he pioneered Points and finally, we get into Blast, the already third largest L2 in TVL.
------ Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.
Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets.
