Welcome Anons. I have been exploring all the possibilities with Blast recently and thought it would be helpful to share what I am doing. To give context, I have 10 ETH bridged over on Blast. I am busy working full-time and trying to build wifi businesses so when I looked at ways to make my crypto be of use, I needed something that I could do and somewhat forget about.
My focus on Blast has been on the LP and lending side because I do not have the bandwidth to constantly interact with platforms. On some of the dexes I am using, I have to put in small amounts of effort to keep the activity up, but that is about it. I have been learning a lot in between this all especially when it comes to the restaking that has been going on.
Some people are taking full advantage of projects like D1 or Pacmoon and reaping massive rewards along the way. My whole goal again was to find ways to put ETH to work and wrack up as many points and Gold as possible.
Currently On Blast Network…
My current strategy on Blast is as follows:
- Lending WETH on Juice collecting a huge APY
- Lending WETH on Orbit and in their new Renzo Pool (Restaking)
- Deposited $PAC into the WETH/PAC Liquidity Pool (LP) on BlasterSwap
- LPing on BlasterSwap (Again) in their WETH/wrsETH Pool. This is a new pool that opened up for restaking with KelpDAO. This is a new partnership opened up between KelpDAO and BlasterSwap to get $1B in TVL to the Liquid Staking Protocol. Restaking ETH gets me EigenLayer Points, Kelp Miles, Blaster Rewards, Gold, and Points. They close this when they hit $1B or on April 30th, 2024, whichever comes first
- LPing in the USDB/ETH Pool on BladeSwap the project that got me over 50 gold on initial distribution. Season 2 for them just started and in their gitbook they stated that participation with reward the next rounds for Gold
- From time to time I am jumping into D1 (SocialFi Platform much like Discord)
Blast has been interesting to me and frankly where I have put all my attention in crypto right now. BowtiedBull is right, crypto as a whole, is way too big to be able to take advantage of everything. I have chosen to pick altcoins in spaces like GambleFi and RWA (Real World Assets) on mainnet and put the rest of my capital on Blast. Safe to say I am all in on this platform and hoping it results in something nice upon the TGE.
EigenLayer- What is it? [From a 5th Grade Level]
Clearly, in this post, I talked a lot about restacking. I spent the time researching what this is and how it works so you did not have to. I will put the material I studied in here so you can also come to your own conclusions.
EigenLayer is a platform built on Ethereum that connects stakers and infrastructure developers. Eigen layer introduced us to this idea of restaking that allows us to share the security that is native to ETH to developers who are looking to build AVSs (Activily Validated Services *ex) data provider).
What is Restaking?
Relatively recently, ETH upgraded from proof-of-work to proof-of-stake. This security model allowed for ETH to lower its energy costs by 99% and rewards stakers with ETH for verifying transactions. This is why you see a reward for just holding ETH on Blast. They are staking the unused ETH on the platform and providing users with the yield from a liquid staking protocol like Lido.
If you were to go directly to LidoFinance and stake ETH, you would receive a new token representing your stake, stETH. stETH is a token that can now be restacked because of EigenLayer to provide security to other platforms that are looking to build infrastructure in crypto.
When restaking on Blast or using some of these other platforms understand that does seem to be risks.
Risks
From the information I have consumed the biggest risks are the following:
- The platform you restaked with gets slashed
- Opportunity Cost
- Smart Contract Risks
Slashing is the worst-case scenario for everyone. It is advised to read the slashing terms for the restaking service you plan on using to completely cover your basis. Rehypothecation seems to be the systemic risk that I personally see here but according to this video on Defiant (and the docs found on EigenLayer’s Website) the risk of systemic meltdown might be an overhyped narrative. What it states is that EigenLayer does not offer up any kind of domino effect because there is not financial activity going on with the ETH you are staking. It seems that the biggest risks are getting slashed, opportunity costs, and obviously smart contract security risks. Understanding who you are staking with and what the slashing terms are important.
The documents from EigenLayer states this about the concerns of rehypothecation:
Rehypothecation in traditional finance implies:
- Depositor no longer have direct control of their assets.
- Depositors have little say in the financial activities conducted by the intermediary.
- Depositors are subject to substantial liquidity and counterparty risks.
Whereas in EigenLayer:
- Stakers retain full control over their staked tokens.
- Stakers have autonomy over the services they wish to validate.
- Stakers are not exposed to counterparty liquidity risks.
There are clear differences between EigenLayer and rehypothecation.
Opportunity costs is pretty self-explanatory. I am missing out a lot on the mem coin side of things right now but I am happy with where my capital is being put to work at the moment. It should be noted that the ETH I staked into some of these restaking platforms like KelpDAO do not allow for withdrawals at this time. For the time being my ETH is in these places and not coming out for at least a month.
Running Up Points or Gold?
Who knows what happens at the end of the day? As Bull said, calculating what the rewards are going to be in terms of airdrop value for Blast right now is damn near impossible. My whole focus is to run up as many points and Gold as I can. That means completing all the multiples when they come up and using as many platforms as I can without opening myself to a blowup like munchable.
At this moment I am not earning as many points from idle ETH as I would like but in a week or so I will see how many points I have racked up from the activity that I have been doing on these platforms. As promised here are the resources I used to get the information in this post:
The Ultimate Guide to EigenLayer
None of this should be deemed financial advice. This post is for educational purposes only.
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