Research Summary
The report discusses the tokenomics and valuation of Pyth Network, an oracle offering low latency, pull-based data services, and Blast, a Layer 2 Optimistic rollup project. Pyth Network, which secures over 120 projects with a combined TVL of $2.06 billion, is set to launch its PYTH token. Blast, on the other hand, aims to offer users native yield for their ETH and stablecoins.
Key Takeaways
Pyth Network’s Tokenomics and Valuation
- Utility of PYTH Token: The PYTH token will be used in governance, determining high-level parameters of the network such as update fees, reward distribution, software updates, and data provision. The total supply will be 10 billion tokens.
- Initial Circulation: At the start of trading, only 1.5 billion tokens or 15% of the total supply will be circulating. The report anticipates the token to initially trade at a high fully diluted valuation (FDV) due to the strength of the Solana ecosystem and a positive tone in the altcoin market.
- Comparative Valuation: The report expects PYTH to take the number 2 spot in terms of circulating and fully diluted valuations among existing Oracle solutions.
Blast’s L2 Optimistic Rollup
- Yield on User Assets: Blast aims to offer yield on users’ assets by default. Users can send USDT, USDC, ETH, or stETH to the mainnet contract, and Blast will convert these assets into yielding derivatives.
- Integration with Smart Contracts: Developers can integrate Blast’s native yield capabilities into their apps. Blast also gives the revenue from gas fees back to developers, allowing them to keep the revenue or subsidize gas fees for users.
- Blast Points and Airdrop: Funds bridged will earn APY and “Blast points”, which will convert to an airdrop for early access members and developers on the network. Users can earn more Blast points via referrals and by staking BLUR to receive a Blast airdrop.
Actionable Insights
- Understanding Pyth Network’s Tokenomics: Investors and stakeholders should familiarize themselves with the tokenomics of the PYTH token, including its utility, initial circulation, and comparative valuation. This knowledge can help them make informed decisions about their involvement with the Pyth Network.
- Exploring Blast’s Yield Opportunities: Users interested in earning yield on their assets should explore Blast’s offerings. By depositing USDT, USDC, ETH, or stETH into the mainnet contract, they can earn yielding derivatives. Additionally, they can earn Blast points and participate in the airdrop by staking BLUR.
- Considering Integration with Blast: Developers should consider integrating Blast’s native yield capabilities into their apps. This can provide additional revenue from gas fees and offer users the benefit of earning yield on their assets.
