Blast Gold: How to make the most of it?

With the introduction of Blast Gold, a seismic shift will occur. How can I make the most of it?

TLDR:

1. Blast Gold is very valuable.
2. Gold rewards usage of dapps with real utility.
3. Blast team levels the playing field.

Current state of point farming on Blast:

• a) users deposit in projects with most points/TVL
• b) projects earn more points from more TVL
• c) higher TVL implies safety and causes FOMO >users deposit into project with most points/TVL

This creates a feedback loop that results in a few projects gobbling up the majority of mainnet launch liquidity as well having the most points to give out, with other projects fighting over scraps.

The top 2 protocols have yielded more than TWICE the points (and have attracted roughly TWICE the TVL) as the next TEN protocols combined.

Does this mean that Orbit and Ring protocol are destined to be the backbone of the Blast Ecosystem forever? Probably not, and here’s why:

• It’s still VERY EARLY days for the Blast Ecosystem, with 2/3 of capital still sidelined, without accounting for funds moving around.
• Any bridged assets on Blast already earn points and yield, with majority of projects unproven against rugs and hacks
• The risk/reward for Blast’s whales then becomes: why risk my entire bag, just to earn some extra rewards from projects I can’t 100% trust?

Blast Gold: The Great Equaliser If points were the only incentive on Blast, then the current deadlock described above would not be broken. Blast Gold elegantly solves this issue.

Blast Gold has TWO primary functions:

• a) To get undeployed capital off the sidelines.
• b) To level the playing field.
• c) To reward usage of dapps that align with Blast’s vision

This differs from the face-value assumption that Gold is a reward for developers.

This is because while half the Blast airdrop (Gold) is “reserved for teams building on Blast”, almost all teams receiving Gold, including BFX, have pledged to pass it onto users. Then, we should think of Blast Gold as the second half of the airdrop reserved for DAPP USERS.

By distributing Gold to projects, the Blast Team has given all the sidelined capital deposited onto blast a massive incentive to be funnelled into dapps, forcing them to interact in order to maximise their airdrop.

Then, we should expect meta in the Blast ecosystem to shift from capital being concentrated in a few dapps that generate the majority of points, to being evenly distributed across all dapps proportional to the amount of gold they receive.

Example: project A and B are both handing out 100% of Points and Gold received.

• A currently has 100mm TVL and are giving out 100mm points per day.
• B currently has 10mm TVL, and are giving out 10mm points per day.

Then, A receives 200k Gold, while B receives 100k Gold.

Let’s assume that the earn rate of Gold and Points of projects scale linearly with how much each user deploys.

Then, the amount of TVL/activity that each project attracts should end up somewhat proportional to the Gold that they have to give away.

Example: If another 70mm of capital were to enter this system, then the efficient distribution would be:

• A receives +20mm and has 120mm of TVL, users split 200k of Gold.
• B receives +50mm and has 60mm of TVL, users split 100k of Gold.

Important Caveat: The above assumes that users in the ecosystem makes rational decisions that efficiently distributes their capital, which we all probably know, doesn’t happen often in crypto.

Then, how do I farm the most Blast Gold possible?

By look for projects with proportionally more Gold to give away than Points.

At least that’s what we think, DYOR.

Happy apeing!

P.S.: BFX is the first DEX in DeFi to provide real yield. Don’t settle for less, get native, sustainable yield at all times with Blast and BFX.