Blast Axes Layer 2 Over Unsustainable Costs
Blast, a decentralized finance (DeFi) platform, is shutting down its Ethereum Layer 2, citing unsustainable costs. The platform, which held $2.2 billion in DeFi deposits in June 2024, has been operating at a loss and sees no viable path to making its Layer 2 chain economically sustainable.
Users have until October 26 to withdraw their assets from the Layer 2 chain, after which funds will still be recoverable through bridge contracts. The platform is pausing withdrawals for a week to unwind its Lido position, before resuming with a 24-hour delay.
This development comes as another blow to the DeFi space, with Balancer and ZetaChain also shutting down their respective chains. The total amount of assets locked in the canonical bridge is around $63.5 million, with a significant portion being stETH.