Ethereum Layer 2 Protocol Blast Secures $20M Investments from Paradigm

Blast, an Ethereum layer 2 protocol with yield-bearing assets, announced the completion of its $20 million funding round led by Paradigm, a research-driven technology investment company with a special focus on crypto.

Announcing the milestone on Twitter now X, the protocol said Standard Crypto also contributed to the $20 million investment round, which would be used to build a layer 2 network that helps users earn more yields on their crypto holdings.

Introducing Blast: The only Ethereum L2 with native yield for ETH and stablecoins.
We’ve raised $20m from @Paradigm and @StandardCrypto to build the L2 that helps you earn more.
Details on how to get early access at the end of the thread👇
— Blast (@Blast_L2) November 20, 2023

Blast Mainnet to Debut Next Year

The funding also reportedly saw participation from eGirl Capital Mechanism Capital, along with other angel investors such as Andrew Kang, co-founder of Lido, Hasu, strategic advisor to Blur, and Larry Cermak, CEO of The Block.

The new L2 protocol, which describes itself as the “first L2 network that incorporates native yield on Ethereum (ETH) and stablecoins,” is backed by both Paradigm and Standard Crypto.

According to the protocol, “Blast natively participates in ETH staking, and the staking yield is passed back to the L2’s users and decentralized applications (dapps).”

The team behind the creation of the network said Blast had undergone a comprehensive redesign from the ground up. The network now allows users to earn an additional yield on their crypto assets automatically after holding them for a certain period.

Blast made its official debut on Monday, attracting early investors who had already bridged over $30 million worth of ETH and undisclosed stablecoins to the network, earning Blast Points within hours of the launch, according to a CoinDesk report.

The Ethereum L2 protocol anticipates its Mainnet to go live on February 24 next year, enabling withdrawals, with users able to redeem their Blast Points starting May 24.

Blast Timeline

Early Access (now) – bridge to earn yield + Blast Points

Mainnet (Feb 24) – dapps go live, withdrawals enabled

Redemption (May 24) – Blast Points can be redeemed

— Blast (@Blast_L2) November 20, 2023

More Room at the Top for Another Winner

In a press release published by Standard Crypto, the company said the L2 network is being developed by Pacman, founder of the popular non-fungible token (NFT) marketplace Blur, with a team of experienced technological experts from MIT, Yale University, and Seoul National University.

Despite the accelerated growth in the Layer 2 landscape, Standard Crypto believes there is still room for more winners to emerge.

“When Pacman first approached us about building a layer 2 earlier this year, the impetus came from his explorations of suitable layers to deploy a Blur layer 2 dApp on — necessary for both low-value NFT trading in high gas environments and for an eventual NFT perp dex. As we talked more and features like the native yield developed, we realized that though the L2 landscape is maturing rapidly, there’s still room at the top for another winner,” said Standard Crypto.

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2023-11-21 15:18