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Home»BITCOIN NEWS»What is BLAST? – Bitfinex Blog
BITCOIN NEWS

What is BLAST? – Bitfinex Blog

By Crypto FlexsJune 28, 20247 Mins Read
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What is BLAST? – Bitfinex Blog
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June 26th What is BLAST?

Posted at 15:00
in education, tokens
by admin

Blast is an Ethereum Layer 2 solution that integrates native returns for ETH and stablecoins, making it a unique product in the Ethereum Layer 2 protocol space. This Layer 2 protocol is designed to distribute returns from decentralized protocols such as ETH staking and the on-chain T-Bill protocol directly to users, providing a 4% return on ETH and 5% return on stablecoins. This approach solves the problem that current Layer 2 solutions do not provide returns, resulting in users losing potential profits to inflation. Blast operates as an EVM-compatible optimistic rollup, allowing users and developers to take advantage of higher baseline yields without changing their familiar Ethereum experience.

One of the important features of Blast is its automatic rebasing mechanism. Unlike traditional tokens, ETH and USDB, Blast’s native stablecoin, automatically adjust user account balances to reflect accumulated profits. This rebasing occurs by default for Externally Owned Accounts (EOAs) and can be optionally enabled for smart contracts, allowing existing decentralized applications (DApps) to integrate seamlessly with Blast without significant modifications. This setting is particularly useful for ensuring that ETH and USDB balances grow over time and reflect the underlying yield mechanism.

Blast’s yield generation is facilitated by Ethereum’s Layer 1 staking rewards, especially protocols like Lido, which automatically transfers yields to Blast users through a rebasing mechanism. Additionally, Blast users who bridge stablecoins will receive USDB, a stablecoin whose yield is derived from MakerDAO’s on-chain T-Bill protocol. This allows users to continue to benefit from competitive returns whether they hold ETH or stablecoins. Going forward, the Blast community has the potential to complement or replace these protocols with Blast native solutions to enhance decentralization and yield optimization.

In addition to the yield, Blast integrates a unique gas revenue sharing model. Unlike other layer 2 solutions that keep the gas fee revenue, Blast programmatically redistributes this revenue to the DApp. This feature allows DApp developers to keep the revenue or use it to subsidize the gas fee of the users, facilitating a more cost-effective and attractive environment for DApp usage. The combination of these features makes Blast a comprehensive layer 2 solution that not only increases the yield, but also optimizes the user and developer experience on the Ethereum network.

What is a BLAST token?

The BLAST token plays a number of important roles within the Blast ecosystem, designed to enhance functionality, encourage participation, and ensure smooth operation across the platform. As the primary utility token of the Blast Layer 2 solution, BLAST is essential for governance, staking, and facilitating various transactions. The primary use case revolves around governance, with token holders able to participate in decision-making processes related to protocol upgrades, monetization strategies, and other key aspects of ecosystem development. This decentralized governance model ensures that the community has a significant say in shaping the future of the platform, while remaining consistent with the broader principles of decentralization and community-driven growth.

In addition to governance, the BLAST token is essential for staking within the Blast ecosystem. Users can stake BLAST tokens to secure the network and receive rewards in return. This staking mechanism not only encourages users to contribute to the security of the network, but also helps maintain the overall health and stability of the ecosystem. The rewards from staking can be substantial and can provide an additional source of income for users who actively participate in the network. This dual function of securing the network and providing rewards makes staking a powerful use case for the BLAST token.

BLAST tokens facilitate various transaction activities within the ecosystem. These tokens are used to pay transaction fees on the Blast Layer 2 network, ensuring operations are cost-effective and efficient. This use case is especially important given the high gas fees associated with transactions on the Ethereum mainnet. By utilizing BLAST tokens for transaction fees, users can enjoy a more economical and smooth trading experience. Additionally, transaction fees collected from BLAST tokens are redistributed within the ecosystem, creating circular benefits that support further development and incentives.

The BLAST token plays a key role in incentivizing developers and users to participate in the Blast ecosystem. Programs such as Blast Points and the Blast Gold initiative allow developers and users to earn BLAST tokens based on their activity and contributions to the network. These incentive programs are designed to foster a vibrant and active community by rewarding liquidity provision, DApp development, and overall engagement. By providing tangible rewards in the form of BLAST tokens, the ecosystem remains dynamic and user-centric by encouraging continued participation, innovation, and growth. This multifaceted approach to utility and incentives highlights the comprehensive role of the BLAST token within the Blast ecosystem.

BLAST Token Economics

The Blast Airdrop is an initiative designed to reward early adopters and participants within the Blast ecosystem. Users can earn Blast Points and Blast Gold through a variety of activities, such as maintaining ETH, WETH, USDB balances or participating in DApps on the platform. Points are automatically distributed based on the balance held in the user’s wallet or smart contract and are reflected in real-time on the Blast.io dashboard. Users can also earn multipliers by increasing their point balance and earning rate by participating in highlighted DApps. Inviting others to the platform also increases the airdrop benefits as users earn an additional percentage on top of the points and gold accumulated through the invite.

Blast Gold, on the other hand, is manually allocated to DApps based on traction and integration with Blast native features. The purpose of Gold is to incentivize DApp growth, encouraging developers to build valuable solutions for the Blast ecosystem. Gold must be distributed by DApps to users via the Blast Points API, ensuring that the benefits are passed on to the community. This structured approach aims to foster a thriving ecosystem where both liquidity providers and developers are rewarded for their contributions.

Despite the active participation through airdrops, the Blast team has not yet provided detailed information on the token economics of the cryptocurrency. Users are still unaware of the distribution plan and maximum supply of Blast tokens. To stay informed of the latest developments, including updates on airdrops and detailed token economics, users are encouraged to join the Blast community. By joining the community, users will receive timely updates and can communicate directly with the Blast team.

How to buy BLAST with cryptocurrency

1. Log in to your Bitfinex account or sign up to create an account.

2. Go to the deposit page.

3. In the Cryptocurrency section, select the cryptocurrency you want to purchase BLAST for and create a deposit address in your exchange wallet.

4. Send cryptocurrency to the generated deposit address.

5. Once your funds arrive in your wallet, you can trade with BLAST. Learn how to trade on Bitfinex here.

How to buy BLAST with fiat currency

1. Create an account by logging in or signing up for a Bitfinex account.

2. To deposit fiat currency into your Bitfinex account, you must be fully verified. Learn about the different verification levels here.

3. On the Deposit page, select the fiat currency you wish to deposit under the Bank Wire menu. Bitfinex has a minimum amount for fiat currency deposits. For more information, see here.

4. Please check the email registered with Bitfinex for remittance details.

5. Send the funds.

6. Once the funds arrive in your wallet, you can use them to purchase BLAST.

Bitfinex is also available on mobile, so you can easily buy BLAST currency on the go.

(App Store) (Google Play)

BLAST Community Channel

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