What is Blast (BLAST)? - Bitfinex blog
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What is Blast (BLAST)?

Blast is an Ethereum Layer 2 solution that integrates native yield for ETH and stablecoins, making it a unique offering in the landscape of Ethereum Layer 2 protocols. This Layer 2 protocol is designed to distribute yield from decentralised protocols like ETH staking and on-chain T-Bill protocols directly to users, offering a 4% yield on ETH and a 5% yield on stablecoins. This approach addresses the issue where current Layer 2 solutions do not offer any yield, causing users to lose potential earnings to inflation. Blast operates as an EVM-compatible, optimistic rollup, ensuring that users and developers can leverage higher baseline yields without altering the familiar Ethereum experience.

One of the critical features of Blast is its auto-rebasing mechanism. Unlike traditional tokens, ETH and Blast’s native stablecoin, USDB, automatically adjust balances in user accounts to reflect accrued yield. This rebasing occurs natively for Externally Owned Accounts (EOAs) and can be optionally enabled for smart contracts, allowing existing Decentralised Applications (DApps) to integrate seamlessly with Blast without requiring significant modifications. This setup is particularly beneficial for ensuring that both ETH and USDB balances grow over time, reflecting the underlying yield mechanisms.

Blast’s yield generation is facilitated by Ethereum’s Layer 1 staking rewards, particularly through protocols like Lido, which automatically transfer yield to Blast users via the rebasing mechanism. Additionally, Blast users who bridge stablecoins receive USDB, a stablecoin whose yield is derived from MakerDAO’s on-chain T-Bill protocol. This ensures that users continuously benefit from competitive yield rates, whether they hold ETH or stablecoins. In the future, the Blast community has the potential to supplement or replace these protocols with Blast-native solutions, enhancing decentralisation and yield optimisation.

Beyond yield, Blast incorporates a unique gas revenue sharing model. Unlike other Layer 2 solutions that retain gas fee revenue, Blast redistributes this revenue back to DApps programmatically. This feature allows DApp developers to either keep the revenue or use it to subsidise gas fees for their users, promoting 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 enhances yield but also optimises user and developer experience on the Ethereum network.

What is the BLAST Token?

The BLAST token serves multiple pivotal roles within the Blast ecosystem, designed to enhance functionality, incentivise participation, and ensure smooth operation across the platform. As the native utility token of the Blast Layer 2 solution, BLAST is integral for governance, staking, and facilitating various transactions. Its primary use case revolves around governance, allowing token holders to participate in decision-making processes regarding protocol upgrades, yield strategies, and other key aspects of the ecosystem’s development. This decentralised governance model ensures that the community has a significant say in shaping the future of the platform, aligning with the broader principles of decentralisation and community-driven growth.

In addition to governance, BLAST tokens are essential for staking within the Blast ecosystem. Users can stake BLAST tokens to secure the network and earn rewards in return. This staking mechanism not only incentivizes users to contribute to the network’s security but also helps in maintaining the overall health and stability of the ecosystem. The rewards earned through staking can be significant, providing an additional income stream for users who participate actively in the network. This dual function of securing the network and offering rewards makes staking a compelling use case for BLAST tokens.

BLAST tokens facilitate various transactional activities within the ecosystem. They are used to pay for transaction fees on the Blast Layer 2 network, ensuring that operations are cost-effective and efficient. This use case is particularly important given the high gas fees often associated with transactions on the Ethereum mainnet. By utilising BLAST tokens for transaction fees, users can enjoy a more economical and seamless trading experience. Additionally, the transaction fees collected in BLAST tokens are redistributed within the ecosystem, creating a cyclical benefit that supports further development and incentivisation.

BLAST tokens play a critical role in incentivizing developers and users to engage with the Blast ecosystem. Through programs like the Blast Points and Blast Gold initiatives, developers and users can earn BLAST tokens based on their activity and contributions to the network. These incentive programs are designed to reward liquidity provision, DApp development, and overall participation, fostering a vibrant and active community. By offering tangible rewards in the form of BLAST tokens, the ecosystem encourages continuous engagement, innovation, and growth, ensuring that it remains dynamic and user-centric. This multifaceted approach to utility and incentivization underscores the comprehensive role of the BLAST token within the Blast ecosystem.

BLAST Tokenomics

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 various activities, such as maintaining balances in ETH, WETH, and USDB, or participating in DApps on the platform. Points are distributed automatically based on the balance held in users’ wallets or smart contracts, reflecting in real-time on the Blast.io dashboard. Additionally, users can earn multipliers by engaging with highlighted DApps, enhancing their Points balance and earning rate. Inviting others to the platform also increases the airdrop benefits, as users earn additional percentages on top of the Points and Gold accumulated by their invites and the invites’ invites.

Blast Gold, on the other hand, is allocated manually to DApps based on their 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 should be distributed by DApps to their users via the Blast Points API, ensuring that the benefits are passed down 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 engagement through the airdrop, the Blast team has not yet provided detailed information about the tokenomics of their crypto. Users remain in the dark regarding the distribution plans and the maximum supply of the Blast token. To stay informed about the latest developments, including updates on the airdrop and detailed tokenomics, users are encouraged to join the Blast community. By participating in the community, users can receive timely updates and engage with the Blast team directly.

How to buy BLAST with crypto

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

2. Go to the Deposit page.

3. In the Cryptocurrencies section, choose the crypto you plan to buy BLAST with and generate a deposit address on the Exchange wallet.

4. Send the crypto to the generated deposit address.

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

How to buy BLAST with fiat

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

2. You need to get full verification to be able to deposit fiat to your Bitfinex account. Learn about different verification levels here.

3. On the Deposit page, under the Bank Wire menu, choose the fiat currency of your deposit. There’s a minimum amount for fiat deposits on Bitfinex; learn more here.

4. Check your Bitfinex registered email for the wire details.

5. Send the funds.

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

Also, we have Bitfinex on mobile, so you can easily buy BLAST currency while on-the-go.

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BLAST Community Channels

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