Blur Founder Launches New Layer 2 Network Blast, Raises $55 Million Within Hours

Blast, Ethereum’s latest Layer 2 network, has gone live in an “early access” mode.

In an X post on Monday, Blast announced its intention of becoming the inaugural Ethereum Layer 2 platform to introduce a built-in yield model. The company’s $20 million initial funding round saw participation from Flashbots strategy lead Hasu, Delegate CEO Foobar, and members of the investment group eGirl Capital.

According to data from Etherscan, investors have already sent more than $56 million worth of ether and stablecoins to Blast.

The Blast Layer 2 solution aims to tackle the speed, cost, and scalability hurdles encountered by Ethereum’s Layer 1 blockchain. Bridges, serving as blockchain-based channels, enable smooth token transfers across various networks.

Blast said that the baseline interest rate on other existing Layer 2 platforms is set at 0%, resulting in the gradual depreciation of asset value against inflation over time. The company has introduced a native yield structure where users’ balances automatically compound, providing a 3-4% through independent ether staking, 4% return for ether and 5% for stablecoins.

Additionally, users stand to receive rewards in the form of “Blast Points,” enhancing the overall value proposition of the platform, according to the team.

Entry to the Blast network is currently restricted to an “invite-only” basis, requiring a code from invited users. Once the mainnet is launched in February, users will gain access to withdrawals and on-chain activities. Redemption of accumulated BLAST points will be possible starting in May.

Tieshun “Pacman” Roquerre, founder of the NFT marketplace Blur, is the creator behind Blast. Having previously revealed his identity in February, Roquerre outlined his ambition for the platform to evolve into the “Binance of NFTs.”

He will be actively involved in the advancement of both Blur and Blast, having secured an additional $40 million in funding to enhance the Blur ecosystem, specifically for the development of Layer 2 applications for NFTs.

In a separate X post yesterday, Roquerre said there was over $100 million of total value locked in Blur’s bidding pool not earning yield, with Layer 2 being the solution.

“A new L2 with native yield for dapps and users would allow the Blur ecosystem to avoid asset depreciation, reduce NFT transaction costs and launch NFT perps,” he said in his post.