Blast
Crypto Overview
Project Overview
Blast is an Ethereum Layer 2 solution that aims to be the first native yield-generating blockchain. The project launched in November 2023 and is currently in its pre-launch phase, with the mainnet expected to go live in February 2024.
Purpose and Utility
Blast's primary utility comes from its unique approach to combining Layer 2 scaling with native yield generation. The platform automatically stakes users' ETH and stablecoins with established protocols to generate yield. It also introduces programmable yield features for developers to incorporate into their applications.
Technical Implementation
The platform operates as an Optimistic rollup, similar to networks like Optimism and Arbitrum, but with added yield-generating capabilities. All ETH deposited to Blast is automatically staked via Lido, while stablecoins are deployed to MakerDAO's DAI Savings Rate.
Token Distribution and Governance
The project has raised $20 million from various investors including Paradigm and Standard Crypto. The token distribution details and governance structure are not yet fully disclosed as the project is pre-launch.
Development Activity
The project shows significant development activity with regular updates to its infrastructure. The team is actively building and testing the network before the mainnet launch.
Concerns for Sharia Compliance
The primary concern from an Islamic finance perspective is the yield generation mechanism. While staking itself can be halal when it represents actual work securing the network, the automatic deployment of funds to generate yield through lending protocols raises questions about compliance with Islamic principles regarding riba.
Crypto Impact
To assign a comfort level investing in Blast from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Blast.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
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Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
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