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Why Everyone's Talking About Blast: The DeFi & Airdropby@sergey-baloyan
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Why Everyone's Talking About Blast: The DeFi & Airdrop

by Serge BaloyanApril 3rd, 2024
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Blast's Airdrop is one of the biggest potential airdrops in 2024. Let's take a look how this DeFi project gained hype and popularity.
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Blast is an Ethereum Layer 2 platform that leverages the technology of rollups to address the limitations of the Ethereum network, particularly in terms of scalability, transaction fees, and security. By bundling numerous transactions off-chain, processing them within its own layer, and then submitting a condensed summary of these transactions back to the ETH mainnet, Blast significantly reduces the workload on the ETH blockchain. This approach results in key benefits such as increased transaction throughput, dramatically lower transaction costs for using Blast-based decentralized applications (dApps), and the robust security guarantees of the underlying Ethereum blockchain.


Let’s take a look at how Blast became one of the most discussed projects this year. As a marketing professional, I want to show you how hype around such projects is created and how they act and position themselves to become one of the current DeFi leaders. And, if you run a DeFi project and you need advice on marketing and community building - you can message me directly.


This article is just a marketing case, not an investment advice. Please, be careful and do your own research.

Blast’s business model

Let’s start with fundamentals - what differs your project from others. One of the key elements is a business model. It’s not only a technical solution, but also one of the key things you can use in marketing campaigns.


Blast's unique business model differentiates it significantly from other DeFi protocols through several innovative features. These features not only enhance the user experience, but also contribute to the platform's attractiveness for both users and developers, leading to a rapid accumulation of Total Value Locked (TVL).


Source: L2Beat



Here's how Blast stands out:


Native Yield for ETH and Stablecoins

Blast is unique in offering built-in yields for ETH and stablecoins directly on its Layer 2 platform. This eliminates the need for users to interact with separate DeFi protocols to earn yields on their assets. For example, ETH staking on Blast leverages the post-Merge Ethereum staking capabilities, offering a 3.2% yield, while its stablecoin, USDB, earns a 13% yield by integrating with MakerDAO’s on-chain T-Bill protocol. This direct yield generation is a significant departure from the norm in DeFi, where Layer 2 solutions typically do not offer native yields.


Evolution of yield farming. Source: Medium

Gamified Airdrop

Blast has implemented a gamified approach to its airdrop, making the process of earning and distributing tokens more engaging for users. This gamification includes mechanisms like referral codes, social media interactions, and a "super spin" lottery draw, where users' "luck" can increase based on their activities and the size of their "squad" or referral network. This approach incentivizes user participation and engagement in a way that's more interactive than traditional airdrop models.

Layered Staking System

This system allows for more nuanced and flexible staking options, catering to different risk appetites and investment strategies. This flexibility is appealing to a broader range of users and can lead to increased TVL as users find staking options that suit their preferences.

Liquid Re-Staking Tokens

Blast's model includes the concept of liquid re-staking tokens, which allows users to trade yield and earn a fixed yield on their assets.

Support for Diverse DeFi Projects

Blast's architecture and ecosystem are designed to support a wide range of DeFi projects, including DEXs, derivatives, NFT games, and more. This broad support encourages the development and migration of diverse applications to Blast's Layer 2 platform, contributing to its TVL and overall ecosystem growth.


Now let’s take a closer look at the marketing mechanism of Blast DeFi to understand how they created such a hype around. And I want to start with the airdrop campaign that generated lots of noise.

Airdrop

The airdrop aims to incentivize user participation and engagement on the platform by rewarding them with Blast points, which will be convertible to BLAST tokens in May. Here's a detailed look at Blast's airdrop strategy and how users can receive points.


Airdrop Mechanics


Blast offers a native yield of 3.2% for ETH and 13% for stablecoins, derived from ETH staking and Real-World Asset (RWA) protocols. This yield is automatically passed back to users, distinguishing Blast from other L2 solutions that typically offer a 0% default interest rate.


Blast's strategy to receive points for the airdrop involves several steps:


  1. Users need to sign up on the Blast website with an invite code (you can use 25N3O), follow Blast on social media, and connect their wallet.
  2. They must bridge ETH or other supported tokens from Ethereum to Blast L2 to start earning Blast points.
  3. Users can earn additional points by inviting friends to join Blast.
  4. Those who bridged assets to Blast before the mainnet launch receive a 10x multiplier on their earned points.
  5. Interacting with dApps on Blast allows users to earn Blast Gold, which will also be convertible to BLAST tokens in May.

Additional Strategies for Blast Airdrop:

  • Developer Incentives: 50% of the airdrop pool is reserved for users, while the remaining 50% is allocated to developers, encouraging both user and developer engagement on the platform.
  • Multiplier Campaign: A future "Multiplier" campaign is planned, offering users additional ways to increase their points by using highlighted dApps, although this feature is not yet live.


Blast's airdrop strategy is multifaceted, focusing on rewarding early users, encouraging asset bridging, and fostering engagement with dApps on the platform. By offering native yields and leveraging a points system that rewards participation, Blast aims to attract and retain users, thereby growing its ecosystem. This approach not only incentivizes user activity but also supports developers, ensuring a vibrant and active community around the Blast L2 solution.


With such strategy the platform has reached over $2 billion in TVL, with a significant portion of this value coming from users bridging funds to participate in the future airdrop of Blast tokens, scheduled for May.


Now let’s take a look at how Blast promoted it’s airdrop and the platform itself.


Social Media

The Blast project's social media presence has been crucial in spreading awareness and engaging with the community, especially in the early stages of the project's launch. That’s why one of the tasks of the airdrop campaign is to follow Blast’s Twitter. Blast has 580+K followers on its official Twitter account @Blast_L2.

Partnerships

Blast has established partnerships with real-world asset protocols to enhance its ecosystem's accessibility and inclusivity. These partnerships aim to integrate tokenized assets seamlessly, thereby expanding DeFi's reach and fostering a more inclusive financial ecosystem. Additionally, collaborations with web3 risk management firms like Gauntlet and DeFi money market protocols like Morpho have been announced, indicating a focus on security and sustainability within the DeFi space.

Influencer Collaborations

The project has strategically collaborated with influencers to leverage their reach and credibility. These collaborations have been instrumental in promoting Blast and its features to a wider audience. You can find dozens of videos on Youtube, posts on Reddit and Twitter about Blast. Most of them are educational - they show how to use the platform and maximize the points you potentially can get.

Events

Blast has engaged the community through events, including developer contests like the "Big Bang" contest, which attracted over 3,000 projects. These events aim to foster innovation and encourage the development of applications on the Blast platform. Such initiatives not only promote Blast but also contribute to the broader Ethereum ecosystem by supporting developers and new projects.

Content Marketing

Through platforms like Substack and various crypto-focused blogs, Blast has disseminated detailed information about its features, benefits, and the future vision of the platform. Articles exploring the scalability solutions offered by Blast, its unique yield mechanisms, and real-world asset integration have been pivotal in educating the community and attracting interest from developers and users alike. Additionally, the project's focus on creating a developer-friendly environment and its promise of native yields for ETH and stablecoins have been highlighted as key differentiators.

Investors



Investors in crypto are not just only money. Projects use it as a proof of confidence to its audience. Let’s take a brief look at how invested in Blast.


  1. Paradigm: A leading crypto investment firm, Paradigm has been mentioned as a major backer of Blast. Paradigm is known for its investments in various successful crypto projects and platforms, emphasizing its confidence in Blast's potential within the Ethereum ecosystem.
  2. Standard Crypto: Another notable investor in Blast, Standard Crypto is a venture capital firm that focuses on supporting projects at the forefront of the crypto and blockchain space. Their investment in Blast underscores the platform's promising approach to enhancing Ethereum's scalability and user experience.
  3. eGirl Capital: This crypto-native investment firm, known for its unique approach and community-driven investment strategy, has also invested in Blast. eGirl Capital's support further validates Blast's appeal to the DeFi community and its potential to attract a diverse user base.
  4. Mechanism Capital: Co-founded by Andrew Kang, Mechanism Capital is an investment firm that focuses on blockchain and DeFi projects. Their investment in Blast indicates a belief in the platform's strategy to offer native yields and improve transaction efficiency on Ethereum.
  5. Lido Strategy Advisor Hasu: Known for his insights and contributions to the crypto space, Hasu's involvement as an investor in Blast adds a layer of credibility and expertise, especially in the context of staking solutions and yield generation.


Blast is currently a notable player in DeFi and Ethereum Layer 2 space. As you can see the project has employed a multifaceted marketing strategy to promote its platform and attract users. Let’s see how Blast will complete it’s airdrop campaign and what results we will see afterwards. But anyway, it’s worth it to see how the project is promoted and what mechanics it uses to build its community.


P.S. Check out some of my previous articles at HackerNoon: