Research Summary
The report discusses the end of Blur season 2 and the introduction of Blast, an Ethereum Virtual Machine (EVM) compatible Layer 2 solution with native yield and a focus on streamlining the Non-Fungible Token (NFT) ecosystem. The report also mentions the airdrop of $BLUR tokens and the significant amount of Ethereum (ETH) and stablecoins deposited into the Blast contract.
Key Takeaways
Introduction of Blast
- Launch of a New Layer 2 Solution: The report highlights the announcement of Blast, an EVM compatible Layer 2 solution. Blast aims to streamline the NFT ecosystem and has a gamified system to build Total Value Locked (TVL) until the chain goes live.
- Significant Deposits into Blast Contract: At the time of the report, $374 million worth of ETH and stablecoins had been deposited into the Blast contract. These deposits are periodically converted to stETH and sDAI to generate yield, contributing an additional 1.69% to Lido’s TVL.
Blur Season 2 and $BLUR Airdrop
- End of Blur Season 2: The report notes the conclusion of Blur season 2 and the subsequent airdrop of $BLUR tokens to participants.
- Blur’s Market Dominance: Blur, despite its opaque operations, has managed to secure an average market share of 65% and attract 260,000 users, warranting its own blockchain according to the report.
Future Developments and Incentives
- Future Rewards in Blast Tokens: The report mentions that Blur Season 3 rewards will be in Blast tokens instead of $BLUR. Half of the airdrop will go to platform users, while the other half will go to $BLUR stakers.
- Incentives for Stakers: Stakers will receive an initial points multiplier for the first five days following the airdrop, and then a time-based multiplier that increases by 0.5x per month, which is lost once unstaked.
Actionable Insights
- Monitor the Development of Blast: Given the significant amount of funds already deposited into the Blast contract and its potential to streamline the NFT ecosystem, it could be beneficial to keep an eye on the development and adoption of this Layer 2 solution.
- Consider the Potential of $BLUR: With the end of Blur season 2 and the airdrop of $BLUR tokens, it may be worth researching the potential of $BLUR, especially considering the incentives for stakers and the token’s role in the upcoming Blur season 3.
- Assess the Impact of Gamification: The gamified system introduced by Blast to build TVL could have implications for user engagement and platform growth. Evaluating the effectiveness of such strategies could provide insights into potential trends in the crypto space.
