According to data provided by DeFiLlama, a significant withdrawal amounting to $1.7 billion occurred within the initial 24 hours following the launch of the Layer-2 protocol known as Blast. This withdrawal constituted the majority of assets deposited into the protocol. Blast had garnered attention by offering native yield opportunities on the Ethereum (ETH) Layer-2, amassing over $2 billion in deposits prior to its launch through a points farming mechanism.
Despite the initial excitement, the network experienced substantial outflows, resulting in the balance of the Blast bridge contract decreasing by approximately 70%. However, not all funds are leaving the network, as some are being transferred into Blast’s ETH Yield Manager Proxy, indicating a redistribution of capital within the ecosystem.
The launch was not devoid of controversies, as the optimistic rollup design necessitates a 14-day waiting period along with Ethereum gas fees for withdrawals back to the mainnet, a detail that some investors claim they were unaware of.
Moreover, the network has already witnessed its first exit scam, involving the protocol ‘RiskOnBlast,’ which disappeared along with $1.3 million worth of Ether.
The evolution of Blast from a deposit-centric initiative to a functional network has been met with mixed reactions. While some critics have likened its deposit-only bridge to a pyramid scheme, proponents have praised its potential to enhance Ethereum’s scalability.
Despite these challenges, Blast has managed to retain a substantial amount of deposits, potentially positioning it as the third-largest Layer-2 network on Ethereum.
The project, supported by Paradigm and led by NFT decentralized application Blur founder Tieshun Roquerre, has garnered both acclaim for its marketing success and criticism for the delays in transitioning from concept to functional implementation.
With a Discord community boasting over 85,000 accounts and 57,000 wallets interacting with the chain since its launch, Blast’s ecosystem continues to expand, despite concerns regarding the viability and security of new projects within its ambit.