Ethereum Layer-2 Network Breaks Through $800 Million TVL Mark

  • TVL for Blast is currently $837.02 million, which is 27% more than it was seven days ago.
  • BLAST TVL has doubled since November 24 when it was approximately $350 million.

DefiLlama statistics show that in the short time since its launch, the Ethereum Layer-2 network Blast has hit a new Total Value Locked (TVL) milestone. Blast is a layer 2 solution that allows users to earn native yield on their assets and is backed by Paradigm. 

Based on the data, Blast’s TVL has increased by 27% to $837.02 million from its previous value seven days ago. Statistics provided by DefiLlama show that on November 24, the L2 solution had a TVL of around $350 million.

Its unique business approach can be attributed in large part to the growth it experienced.  Users that bet their Ethereum or stablecoins on this new platform will be rewarded via an inventive yield producing approach.

However, many experts have advised caution as there have been instances of many such yield promising protocols in the past that failed due to a critical flaw not quite thought through while the program was being deployed. It remains to be seen whether Blast can silence its critics and emerge as a better and secure protocol for its users. 

Resolving Security Issues

Staking Ethereum offers users a maximum payment of 4%, while stablecoin holders stand to earn a 5% yield. Since this feature is unique in the DeFi space, it has attracted a lot of attention from investors.

The huge rise in popularity of Blast is despite the challenges that the protocol has faced thus far. At the end of November 2023, a security breach was discovered when Blast users noticed that $100,000 disappeared after their funds were converted to Dai (DIA).

It was discovered that an improperly configured slippage parameter in the user interface was the root of the issue. The process continued, and assets valued at approximately $350 million were also converted to ETH and USDT. However, Blast didn’t take long to address this concern. 

Blast mainnet is set to launch early next year in February. 

Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Puskar Pande

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