Unique Business Model Drives Explosive Growth
Web3 protocol Blast has quickly reached $823 million in total value locked (TVL) since its launch in mid-November, according to data from DefiLlama. The protocol's unique business model, which offers native yields to users who stake their funds, has contributed to its rapid growth. Users can earn a 4% yield on Ether (ETH) and a 5% yield on stablecoins by staking on the platform.
Challenges and Unpopular Developments
Despite its success, Blast's emergence has not been without challenges. In November, a user staking on the protocol experienced a loss of $100,000 due to a misconfigured parameter on the user interface. Blast has since compensated the user with $10,000, which will be covered by the $20 million capital raised from investors like Paradigm.
Complicated Relationship with Paradigm
Blast's relationship with Paradigm, one of its investors, has also faced difficulties. The head of research at Paradigm expressed disagreement with Blast's strategy of launching a bridge before its layer-2 network goes live. Despite ongoing discussions to address these issues, the VC's role in Blast's decision-making is still unclear, as is Blast's governance structure and technical documentation.
Withdrawal Functionality and Member Growth
One notable concern surrounding Blast is the lack of withdrawal functionality for users. However, this has not deterred over 75,000 members from joining the platform in just a few weeks. Additionally, Blast is currently hiring senior engineers for its upcoming deployments.
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