Web3 protocol”Big Bang“It reached a whopping total value locked (TVL) of $823 million just a few weeks after its controversial launch in mid-November. TVL is up 26.5% in the last seven days alone, according to data from DefiLlama.
Blast’s rapid growth is driven by a unique business model. The protocol is a scaling solution for Ethereum and offers local returns to users who invest their funds in the project. Notably, the project offers a 4% return on Ether (ETH) and 5% on stablecoins.
However, this is a somewhat controversial protocol. Explosion on November 30 he explained One staking user saw $100,000 disappear after converting his deposit to Dai (COME ON). The issue was caused by a misconfigured scrolling parameter in the user interface, for which Blast paid the victim $10,000 in compensation.
That 10% compensation will be covered by some of the $20 million in capital Blast has raised through investors like Paradigm, the same venture capital firm that lost $278 million in FTX’s failure. However, the relationship between Blast and Paradigm seems to be souring.
In late November, Dan Robinson, Paradigm’s head of research, shared a statement saying: his disagreement With a bridging strategy before Blast’s Layer-2 network becomes operational. Blast plans to release the testnet and offer an airdrop to developers in January; The mainnet is expected to be available in February.
“We think this will set a bad precedent for other projects.“, have Wrote Robinson in X (formerly Twitter) adds that Blast’s marketing strategy has reduced the work of a rock-solid developer team.
Blast and Paradigm worked together to resolve the issues, but the venture capital firm’s role in the startup’s decision-making process and the project’s governance structure and technical documentation remain unclear.
Another element of the protocol that is widely discussed in society is the lack of a withdrawal function. Users who deposit and stake money into Blast are confident that the team will add a withdrawal feature in the coming months.
Despite the problems, Blast attracted over 75,000 members in just a few weeks and is currently standing recruitment of senior engineers for future applications.