Blast, a Web3 protocol, has achieved a remarkable Total Value Locked (TVL) of $823 million within a short period since its controversial mid-November launch, showing a 26.5% increase in the past seven days, as per DefiLlama data.
The protocol’s rapid growth can be attributed to its unique business model, serving as a scaling solution for the Ethereum network. It offers native yields to users who stake their funds, promising a 4% yield on Ether (ETH) and a 5% yield on stablecoins.
However, Blast has encountered challenges and controversies. A user reported a loss of $100,000 after converting a deposit to Dai (DAI) due to a misconfigured slippage parameter on the user interface.
Blast Web3 Protocol Compensates User Amid Strain with Paradigm Over Strategy
Blast promptly compensated the user with $10,000, covering 10% of the loss using part of the $20 million capital raised from investors like Paradigm.
Yet, Blast faces internal challenges, with Paradigm expressing disagreement with the protocol’s strategy of launching a bridge before its layer-2 network goes live. Dan Robinson, the head of research at Paradigm, criticized this move, stating it sets a negative precedent and undermines the serious work of the team.
The relationship between Blast and Paradigm is under scrutiny, and uncertainties persist regarding Paradigm’s role in Blast’s decision-making, the governance structure, and technical documentation.
Blast Faces Withdrawal Criticism, Grows Membership, Plans January Testnet
Another point of contention is the absence of withdrawal functionality, leaving users reliant on the promise that Blast will introduce this feature in the coming months.
Despite these hurdles, Blast has managed to attract over 75,000 members in a short span and is actively hiring senior engineers for its upcoming deployments. The protocol anticipates releasing its testnet in January, with a developer’s airdrop, and plans to launch its mainnet in February.