In-Depth Explanation of the Value of Blast Gold Points and Point Farming Guide

Forward the Original Title‘深度解读Blast黄金积分价值及撸分攻略’.

How Much is One Gold Point Worth?

Based on Blast’s current off-exchange valuation of $5 billion, assuming Blast’s final airdrop is 20%, which is $1 billion, according to Blast’s rules, 10% goes to Blast Points and 10% to Blast Gold:

We can roughly estimate that 1 Blast Gold is about 12U.

Blast Gold Points Farming Guide

To obtain Gold Points, you must participate in dApps. Currently, a large portion of funds on-chain are idle. Players participating in dApps may gain huge excess returns.

However, at the same time, we notice that the Gold Points allocated to projects and TVL (total value locked) are not completely linear. The project with the highest TVL received 200,000 points, while some projects with low TVL but performing well also received several thousand or even tens of thousands of points.

Therefore, for projects that test funds, the best strategy to capture Gold Points is to participate in projects that have a large allocation of Gold but have not yet received a large influx of funds for their temporary TVL.

We can cross-reference these projects’ TVL and the amount of Blast Gold they obtained from Defilama to estimate a cost-performance ranking.

This table mainly targets DeFi projects and simply uses TVL as a rough basis for judgment. The top-ranked project in the table above allows you to earn 0.4 units for depositing 1 unit, which has an extremely high cost-performance ratio.

Among the top five projects, there are three derivatives trading platforms, one DEX, and one CDP lending protocol. This article will provide a brief introduction to these five projects to help you choose suitable high-yield Gold Point projects to participate in.

Introduction to High-Yield Gold Point Projects

Let’s first introduce the three derivatives trading platforms: Blast Futures, Blitz, and Particle. Derivatives trading platforms have become one of the most competitive tracks besides DEXs during this bull market. The trading frequency on derivatives trading platforms is higher than on DEXs, and an outstanding project can contribute a huge number of users and transactions to the public chain platform, so public chains tend to pay more attention to such projects.

Currently, the TVLs of these three derivatives trading platforms are quite close, all around $8M, fiercely competing for the second position after the leader.

Particle

The TVL queried on Defilama is $8.3M, while Particle’s official TVL data is $13M, with a trading volume of $3M and a trading volume to TVL ratio of 0.23.

Particle currently has 8 trading pairs available for spot trading and leveraged long/short trading. The depth of each trading pair and the size of long/short positions determine the maximum leverage ratio.

In the first period, Particle received 224,305 Gold Points. According to the official announcement, these Gold Points will be distributed to users based on their Particle Points, but the specific distribution rules have not been announced yet. In general, the higher the Particle Points earned, the more Gold Points one can receive.

Users can check their scores on Particle’s Leaderboard page, which can be earned through TVL contribution and trading volume contribution, along with a multiplier of up to 2.5x. Cross-chain Blast users, Particle Testnet users, Uniswap users, and holders of certain NFTs can obtain the multiplier.

In terms of contract security, Particle has provided a contract audit report: https://code4rena.com/reports/2023-12-particle, and it has been running normally since its launch.

When participating in the project, it’s important to note that whether contributing liquidity to trading pairs or trading volume, there may be some slippage. It’s recommended to participate in trading pairs with high depth, such as the USDB-WETH trading pair, to minimize slippage as much as possible.

Blitz

Blitz offers derivative trading for over 40 tokens, covering major blue-chip projects,and catering to more diverse user needs. The TVL queried on Defilama for Blitz is $8.08M, with a 24-hour trading volume of $48M and a trading volume to TVL ratio of 5.94. Based on the data, Blitz seems to have a high capital utilization rate and active trading.

Blitz uses an order book format similar to centralized exchanges, requiring users to deposit funds into the Blitz platform before trading. Each derivative has a different leverage ratio, with a maximum of up to 20x.

In the first period, Blitz received 277,792 Gold Points. To enter Blitz’s points system and obtain a referral link, users need to deposit at least 5 USDB or 0.003 WETH.

According to the prompts on the website, the points display has not gone live yet, and the specific rules have not been announced. However, we can guess that to earn Blitz points, users will likely need to contribute liquidity and trading volume. Additionally, Blitz’s event on Galxe is still ongoing, where users can earn Blitz Community Points by following the official rules: https://docs.blitz.exchange/points-and-protocol-rewards/blitz-community-points

Blast Futures

The TVL of Blast Futures is $7.91M, with a 24-hour trading volume of around $246M and a trading volume to TVL ratio of 31.09, the highest among the three derivatives trading platforms. This ratio is even higher than the leader Synfutures (Synfutures’ TVL is $22M with a 24-hour trading volume of $333M).

Currently, Blast Futures platform offers trading for 37 assets, basically covering mainstream and popular assets, with decent trading depth and smooth user experience.

In the first period, Blast Futures received 277,797 Gold Points. According to the official announcement, 100% of the Blast Gold will be distributed to users, and it will be distributed daily. Based on our research, since Blast Gold is distributed every 2-3 weeks, they are likely recording the Gold in users’ accounts first and will distribute it after receiving the Gold allocation.

How can users claim Blast Gold? According to the official documentation, users can earn it through trading volume, depositing assets, and staking.

75% of Blast Gold will be distributed to users who deposit assets and stake in the vault, allocated based on the deposit amount and duration - simply put, the more you deposit and the longer the duration, the more you will receive.

25% of Blast Gold will be distributed based on trading volume, with higher volume earning more Gold. Users can also get a 40% boost by upgrading their account level.

The account levels and multipliers are as follows:

After understanding this mechanism, we can participate in the event by depositing USDB:

The USDB deposited into the vault serves as the dynamic AMM liquidity for the protocol, currently earning an annualized 41.46% yield. However, users should be aware that BFX’s dynamic mechanism may carry risks during one-sided market conditions.

Another way is to increase trading volume. Currently, the futures contracts traded are pairs between an asset and a stablecoin. Users can choose an asset they are more familiar with for trading to increase volume while trying to minimize trading friction costs as much as possible.

Blast Futures’ contracts have also passed an audit (https://github.com/BlastFutures/Blast-Futures-Exchange/blob/main/audits/bfx_audit_report_hats.pdf), showing the team places importance on security.

Additionally, the project’s token has not been made public yet, but may provide benefits to users in the future.

Blasterswap

Blasterswap is a DEX protocol, a fork based on Uniswap V2 and V3, innovating with features like an easy token launch launchpad, limit orders, and zero-slippage execution for dollar cost averaging investment strategies. However, to prioritize protocol stability, Blasterswap currently only offers the basic conservative Uniswap V2 functionality, with other innovative features not yet launched. The website shows the next focus is on the launchpad. Blasterswap’s current TVL is $2.91M, ranking 6th among DEXs on Blast, likely because the product just recently launched with not many trading pairs yet.

For such a project, users have lower learning costs as it’s more straightforward. So this article won’t go into too much detail on the product. For users looking to earn points, it’s beginner-friendly as Uniswap V2 is battle-tested for security. But risks need to be highlighted: AMM trading pairs other than stablecoins are subject to impermanent loss, and a pure fork protocol doesn’t show high technical capabilities - we can only observe its operational abilities.

In the first period, Blasterswap received 108,508 Gold Points. From the project docs and Discord admin’s introduction, Blasterswap promises to distribute 100% of Blast Gold to users and partners, but hasn’t disclosed the specific allocation ratio at the time of writing - details will be announced later. The yield rate in the table above assumes 100% of Gold goes to users; the deviation won’t be large if the partner allocation isn’t significant.

Users can participate by joining Blasterswap’s Pre-Generation event to earn its Pre-token and event rewards. The early bird event has ended, so we can only join the Pre-Generation event now.

The event mechanism for Blasterswap is quite simple, and divided into four categories: trading rewards, task rewards, liquidity provision rewards, and referral rewards.

Trading Rewards: Users’ trading volume on the platform is recorded. $100 worth of trading volume earns 15 points, $1,000 earns 200 points, and $10,000 earns 3,000 points.

Task Rewards: Trading $100 worth of volume daily can accelerate point earnings, with up to a 50% boost for 10 consecutive days.

Liquidity Provision Rewards: Depositing $100 worth of assets earns 10 points daily, over $1,000 earns 150 points, and over $10,000 earns 2,000 points.

Referral Rewards: Inviting users earns 10% of the invitee’s points.

Trading and providing liquidity are the main ways to earn points. To avoid impermanent loss, users can consider stablecoin trading pairs.

For contract security, Blasterswap has submitted an audit report: https://github.com/blasterswap/blasterswap-core-v2/blob/main/AstraSec-AuditReport-BlasterSwap.pdf

Given its mature Uniswap V2 mechanism origins, I believe it should be quite secure.

Blasterswap requires daily trading to earn more points, which is more time-consuming. However, the expected Gold Point rewards are still worth participating in. Additionally, the platform’s token will likely be distributed to users, increasing the potential rewards.

Wand Protocol

Wand Protocol is a CDP (collateralized debt position) protocol. On Defilama, we can see there are relatively few CDP protocols on Blast, with Wand Protocol being the only native one currently. CDP, short for collateralized debt position, has its origins in MakerDao. The CDP model logic is simple - assuming the current ETH price is $3,000. If you collateralize 1 ETH into MakerDao, you can draw around $2,500 DAI, effectively taking out an on-chain collateralized loan with the extra $500 as over-collateralization.

Wand Protocol innovated by proposing a Pooled-CDP model. In Wand, each asset corresponds to a shared CDP Vault, achieving global debt pooling. The overcollateralized portion is also globally shared. Wand tokenized this overcollateralized portion into Margin Tokens that can be traded, improving capital efficiency and enabling more use cases.

This innovation increases the learning curve for users, so large capital inflows haven’t occurred yet. Wand’s current TVL is $1.6M. The protocol opened two pools for ETH and USDB, both Blast’s native interest-bearing tokens. Users can deposit ETH or USDB into the Vault to borrow the protocol’s stablecoin USB, while also receiving ETHx and USDBx. ETHx is like a leveraged token for ETH, while USDBx is an equity token that multiplies the USDB yield.

In the first period, Wand received 53,492 Gold Points. According to the official docs, all these points will be distributed to Wand users. Wand designed its own points system accessible via Early Access which requires an invite code (available on the Wand Discord).

The specific rules for earning points can be referenced in the official documentation: https://docs.wand.fi/early-access-campaign/blast-gold-developer-points

Addresses that participated in the Wand Galxe event or previously deposited on Blast have initial points (good news for airdrops), and then further points are allocated based on TVL contribution. It’s recommended to choose to deposit ETH or USDB based on your assets, or directly swap for Wand’s protocol tokens on Thruster. Stablecoin yield farmers can opt for USB (APY ~20%) or USDBx (APY ~50%), both with attractive yields. ETH bulls can buy ETHx, which is essentially leveraged ETH spot exposure.

For contract security, Wand has provided a third-party audit report: https://github.com/wandfi/wand-contract-blast/blob/main/audits/Beosin_202403081621.pdf,

using Redstone as the oracle.

As a relatively mature CDP protocol, Wand has been operating normally since its launch, making it comparatively reliable in terms of security. While yield farming, we can also anticipate a potential airdrop of Wand’s native platform token.

In addition to these attractive DeFi projects, it’s recommended to actively explore game and NFT projects as well, since Blast’s official announcement stated that subsequent Gold Point allocations will go to some ERC-721 and ERC-20 token holders. We will continue monitoring the Gold Point distributions and provide timely updates with better farming guides.

Disclaimer：

1. This article is reprinted from [Panews]. Forward the Original Title‘深度解读Blast黄金积分价值及撸分攻略’. All copyrights belong to the original author [Infinity Labs Research]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
2. Liability Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
3. Translations of the article into other languages are done by the Gate Learn team. Unless mentioned, copying, distributing, or plagiarizing the translated articles is prohibited.