Days before its scheduled mainnet launch at the end of this month, the Ethereum layer 2 network Blast has achieved a milestone by surpassing $2.1 billion in total value locked (TVL).
According to DefiLlama, Blast's TVL has surged by over 2,200% since the launch of its bridge protocol on November 22, with the current TVL standing at $2.1 billion. The substantial increase in locked value is primarily attributed to users locking their Ethereum into the protocol in anticipation of a future airdrop of Blast tokens, slated for May. However, controversy surrounds Blast's protocol as users are unable to withdraw funds until the mainnet launch.
The protocol's rollout has been met with criticism, with concerns raised about the messaging and execution, particularly the potential repercussions of a delayed rollout on future developers and industry precedent, according to Dan Robinson, head of research at crypto venture capital firm Paradigm.
Further controversy emerged on February 26 when a carpet-pulling incident was alleged on a gambling protocol named "Risk on Blast." The project reportedly raised 420 Ethereum (ETH), equivalent to $1.35 million, for a pre-sale of tokens called RISK. Subsequently, the team transferred funds for the algorithmic stablecoin Dai (DAI) to the non-custodial cryptocurrency exchange ChangeNOW and deleted associated social media accounts.
Blast Protocol, launched in mid-November, serves as a scaling solution for the Ethereum network, offering native yields on Ethereum (ETH) and stablecoins to users who participate in the protocol. Notably, Blast's founder, Tieshun Roquerre, known under the pseudonym "PacMan," is also the founder of the NFT platform Blur.
In a post published on November 23, Roquerre defended Blast against criticisms of overly attractive yields, stating that Blast's yields are generated by protocols like Lido and MakerDAO. Just before its launch, Blast secured a $20 million seed round led by Paradigm and Standard Crypto.
