Research Summary
The report discusses the end of Blur’s season 2 and the speculation around the impact on the NFT market. It also introduces Blast, a new Ethereum Layer 2 (L2) with native yield for ETH and stablecoins. The report further explains the mechanics of Blur’s season 3 and how to earn points for the upcoming Blast airdrop. It also touches on the potential market implications of these developments.
Key Takeaways
Introduction of Blast
- Blast’s Unique Proposition: Blast is a new Ethereum Layer 2 (L2) that offers native yield for ETH and stablecoins. This means that ETH or stablecoins in a wallet on Blast will automatically earn yield (4% for ETH and 5% for stables). The funds deposited into any dapp/protocol on Blast will also earn yield.
- Blast’s Impact on Blur: The introduction of Blast has influenced Blur’s season 3. While Blur’s first two seasons resulted in people being airdropped the $BLUR token, season 3 is about earning points for the upcoming Blast airdrop. The report suggests that the rewards for Blur’s season 3 are likely to be $BLAST-related tokens.
Blur’s Season 3 Mechanics
- Holder Points: In Blur’s season 3, users can earn points by staking their $BLUR tokens. The longer and earlier they stake, the more points they earn. These points contribute to the rewards for season 3.
- Blur Points: The other half of season 3 rewards will go to people using the Blur protocol. Users can earn points through bidding, listing, and lending. The report also highlights the importance of loyalty in earning points. Users who list NFTs on other platforms see their loyalty, and thus their points, decrease.
Market Implications of Blur and Blast
- Impact on NFT Market: The report suggests that the introduction of Blast and the continuation of Blur’s incentives in season 3 could divert funds that might have otherwise flowed into NFTs. This could potentially impact the NFT market.
- Asymmetrical Bet on Blast: Despite the risks associated with Blast, such as smart contract risk, bridge exploit risks, and multisig risks, the report views Blast as a strong asymmetrical bet due to its unique proposition, strong team, and aligned investor incentives.
Other Layer 2 Solutions
- Competition Among L2s: The report acknowledges the work done by other L2s like Optimism and Arbitrum. However, it suggests that Blast’s unique proposition and strong marketing could make it difficult for other L2s to compete for mindshare in the coming months.
Actionable Insights
- Consider the Potential of Blast: Given Blast’s unique proposition of offering native yield for ETH and stablecoins, it could be worth exploring the potential of this new L2. However, it’s important to consider the associated risks.
- Engage with Blur’s Season 3: Blur’s season 3 offers opportunities to earn points for the upcoming Blast airdrop. Users can earn points by staking $BLUR tokens and using the Blur protocol. It could be beneficial to understand and engage with these mechanisms.
- Monitor the Impact on NFT Market: The introduction of Blast and the continuation of Blur’s incentives could impact the NFT market. It could be useful to monitor these developments and their potential effects on the market.
- Research Other L2 Solutions: While Blast has garnered attention, other L2s like Optimism and Arbitrum also offer valuable solutions. It could be beneficial to research these other L2s and their offerings.
