Blur founder’s L2 “Blast” raises 60 billion yen, raising community concerns over transparency

Deposit 60 billion yen on Blast

On November 21st, Pacman, founder of NFT aggregation marketplace Blur, announced a new Ethereum L2 platform, Blast, and launched its early access version. In just three days, they have collected more than 60 billion yen ($400 million) of stablecoins and crypto assets (virtual currency) Ethereum (ETH).

Blast aims to achieve automatic asset value accretion by providing yield to users and developers through ETH and stablecoin staking. According to Pacman, Blast will offer a number of innovative features, including reduced NFT gas fees and the possibility of perpetual futures contracts based on NFT floor prices.

In addition, we successfully raised 3 billion yen from prominent investment companies such as Paradigm and Standard Crypto. The combination of the company’s relationship with Blur and expectations for future token rewards allowed it to successfully collect deposits from the community.

connection:New Ethereum layer 2 “Blast” raises 3 billion yen, starts early access

Security concerns

However, concerns have been raised regarding Blast’s security. According to Polygon developer Jarrod Watts, Blast’s funds are managed in a multisig contract (Gnosis Safe) shared by five new anonymous accounts. Under this system, a decision can be made to use or change funds if three of the five accounts agree.

After 0x52c31 deploys these contracts, it transfers the ownership to a Gnosis Safe smart contract.

Gnosis Safe, or “Safe” contracts are the most popular & trusted multi-sig smart contracts.

They require the majority of signers to sign in order to execute a transaction.

(2/24) pic.twitter.com/0CWbUHVSi0

— Jarrod Watts (@jarrodWattsDev) November 23, 2023

SlowMist founder Yu Xiang also points out that the contract is at risk of being misused because the identity of the operator is not clear. In particular, he warned that malicious logic contracts could be upgraded or malicious mainnet bridges could be installed through multi-signatures.

Watts also pointed out that Blast does not actually function as a layer 2 solution, but is simply a smart contract that invests users’ funds in other protocols. It suggested that there is a gap between Blast’s advertised features and the actual services it provides.

Pacman response and community reaction

In response to these issues, Pacman expressed confidence in the sustainability of Blast, noting that its yield is provided by Lido and MakerDAO. He also stressed that Paradigm is not involved in market entry strategies. Furthermore, he emphasized that the invitation reward system is important for community contributions and the success of the platform.

However, Pacman did not provide specific information regarding the identity of Gnosis Safe’s multi-signature signers and did not directly respond to transparency concerns from the community. This kind of opaque management system raises doubts about Blast’s credibility.

Some in the community are demanding that Pacman reveal five new anonymous accounts that control Gnosis Safe’s multi-signature system. Please note that funds deposited with Blast cannot be withdrawn until the mainnet is launched, which is scheduled for February 2024.

thank you for addressing none of the real concerns that people had.

you’re a role model to founders like myself.

who the fuck are the multisig signers.

— Harrison (@PopPunkOnChain) November 24, 2023

connection:Overseas version of Binance opens spot trading market for virtual currency BLUR

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