Some people are labeling Blast's airdrop as a lifechanger. In this article I will explain everything you need to know. The reasons why one can be very bullish on this new layer2 is the investment company behind it: Paradigm. These VC have funded other projects that have led to huge airdrops: DyDx ($DyDx), Blur ($Blur), Optimism ($OP), Ribbon Finance ($RBN). A few days ago, Blur with the second airdrop gave a user today's value of 12 million dollars!
The airdrop from DyDx and Ribbon Finance have been huge on average with some users getting up to $1 million in airdrops. This makes me very bullish on Blast too!
WHAT IS BLAST? A DIFFERENT LAYER2!
Blast, is set to change Layer2 on Ethereum as it aims to provide native yield for both ETH and stablecoins. This is an Optimistic Rollup (like Optimism, Base, Mantle, Arbitrum, etc). The founder of Blast is Pacman (the same as Blur Marketplace).
The main investors are Paradigm and StandardCrypto (20 million dollars in funding). Blast is designed to act as a liquidity magnet by offering native returns, a feature missing from existing L2 solutions. Understanding how Blast works requires understanding the concept of RFR. In traditional finance, the most notable example is the RFR of the US economy, controlled by the Federal Reserve through Treasury Bonds. Ethereum introduced a similar concept with ETH staking, offering a 3-4% yield and attracting significant liquidity. Blast, on the other hand, is based on the principle that liquidity naturally gravitates towards higher returns. Traditional L2 offer a base interest rate of 0%, which leads to depreciation of assets over time.
While the base interest rate on existing L2 solutions is 0%, leading to asset depreciation over time, Blast is pioneering the concept of native yield on L2. This means that ETH and stablecoins grow over time. The yield is 4% for ETH and 5% for stablecoins.
With Blast, if you hold 0.1 ETH, it could grow to 0.12 ETH, 0.15 ETH, etc over time, thanks to automatic compounding and additional Blast rewards. When you bridge stablecoins like USDC, USDT, and DAI to Blast, they are implemented in protocols similar to on-chain T-Bills, with yield funneled back to users via USDB, Blast's auto-backed stablecoin.
HOW TO RECEIVE AIRDROP: BRIDGE ON BLAST
Basically there are 2 ways to receive airdrops. I'm using them both. The first way is to bridge funds to Blast. All you have to do is follow them on Twitter, join the Discord server, and then bridge an amount of ETH or stablecoins to Blast. However, remember that you will not be able to withdraw your funds until February 24, 2024 (launch of the mainnet). Your points will be converted into Blast tokens in May 2024 where you will receive airdrop. To date there are already over 50,000 users who have bridged and the TVL is already over $430 million! Monstrous numbers.
You can bridge the amount you want, although the more funds you transfer, the more points you earn and the more tokens you will receive. However, as this is a new project, I advise you to transfer an amount that will make you sleep at night! For the moment I have only bridged 0.06 ETH, however I will add more in the next few days. You can only transfer funds (Eth, Usdc, Usdt, Dai) from the Ethereum Mainnet, using Metamask. Blast is by invitation only and if you want to try to receive the airdrop, transferring what makes you feel comfortable you can use one of these invitations:
blast.io/OKOWD
blast.io/CH9JO
blast.io/YPG8P
FARM BLAST BY STAKING BLUR
Another method to receive airdrops is by staking $Blur on Blur Foundaton. However in this case it is necessary to buy the $Blur token. I received their airdrop and staked $Blur.
BULLISH REASONS
-Founder: the same as Blur Marketplace (which ousted Opensea as the leading NFT marketplace)
-Investors behind: Paradigm (where they are, huge airdrops arrive)
-Layer2 different from the competition (assets generate income automatically)
-Airdrop (if you bridge assets, you will earn points that will be converted into $Blast tokens in May 2024)
BEARISH REASONS
-New and complex project
-Funds are bridged to a Layer2 which will enable withdrawals in February 2024
FINAL CONSIDERATIONS
I have explained the reasons why I am very bullish. However, this is something very revolutionary and like all new things it can present risks (DYOR). If you want to try to receive airdrops I recommend you only pay the amount that makes you sleep at night. I think it could be a good opportunity to participate in the launch of a huge airdrop, transferring only sums that you are willing to put into play! Is it worth risking a small sum that could lead to an airdrop 20/30 times larger? I think yes. In any case, DYOR.
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