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- Blast’s “default return” feature helped lift TVL past $570 million.
- CGV said that this investment will be used for project incubation and investment within the network.
The upcoming layer 2 (L2) network Blast has attracted over $570 million in Total Value Locked (TVL) within a week of its reveal, AMBCrypto observed through data from DeFiLlama.
Source: DeFiLlama
Someone is causing an explosion!
The phenomenal growth in funds deposited mostly in staked Ethereum (stETH) and the stablecoin DAI is unprecedented for the L2 network in such a short period of time. And that’s even when the network isn’t even fully launched.
At the time of this writing, the network was in its “early access” phase, open only to selected users and those they invited.
The network’s so-called “default yield” feature, which is debuting for the first time in the currently crowded Ethereum (ETH) L2 market, could be driving the increase in inflows. Blast claims to offer returns of 4% on staked ETH and 5% on stablecoins.
Basically, returns from L1 staking through Lido Finance (LDO) are automatically transferred to users by rebasing their ETH in L2, Blast claimed on its official website.
Clearly, people were influenced by these claims and decided to invest in a network that is still in its infancy.
Investments continue to pour in
The interest shown by large investment companies also added to expectations. CGV, a Japanese Web3 investment group, has pledged to invest $5 million in the Blast ecosystem to help it thrive. CGV said that this investment will be used for project incubation and investment within the network.
The network has already secured $20 million worth of investment from well-known cryptocurrency-focused investment firms such as Paradigm and Standard Crypto. These endorsements also helped build Blast’s brand image.
A controversial aspect
Blockchain will only be active until February. Until then, you will not be able to withdraw assets linked to the platform. In the meantime, reward points will be paid to early bird users. Early members earn more points based on how connected they are and who they invite.
However, it is here that the integrity of the network is questioned. Many in the industry equated it to a Ponzi scheme.
actually, management At Paradigm also criticized the decision to open the bridge and limit withdrawals before the L2 launch.