LayerZero
LayerZero is a compatibility protocol that is designed to simplify the creation of omnichain compliant applications.
How does LayerZero work?
LayerZero deploys a set of smart contracts on each supported chain, known as LayerZero Endpoints. These smart contracts link all supported LayerZero chains and can be easily deployed on new chains to include them in the LayerZero network.
Take the example of cross-chain borrowing, where a user is trying to borrow USDC on the Avalanche blockchain against his WBTC balances on Ethereum. The user first initiates the action on Ethereum, where the transaction details are sent to the LayerZero endpoint on the blockchain.
LayerZero works on the principle that if two independent entities can confirm that a transaction on chain A is valid, then chain B can be sure that the transaction on chain A is valid and hence execute the transaction on chain B. In the above case, chain A is Ethereum and chain B is Avalanche. The two independent entities are known as oracle and relay, which are off-chain and independent of each other. The endpoint on Ethereum sends transaction details to both of these entities.
The oracle then creates a block header for the transaction based on the received data, and the relay independently generates a proof for the transaction. If both the block header and the proof agree with each other, it means that the transaction is valid. Once this is proven, a message is sent to Avalanche to finalize the transaction. In this scenario, the corresponding USDC amount is credited to the user's wallet, thus completing the cross-chain borrowing transaction.
Examples of LayerZero use cases
The most direct application of LayerZero technology is, of course, bridging. In fact, the first DApp built on LayerZero was the bridging protocol, Stargate Finance. Stargate Finance is an omnichannel bridging protocol that supports transfers between eight L1 and L2 chains: Ethereum, BNB Chain, Avalanche, Polygon, Fantom, Arbitrum, Optimism, and Metis.
In addition to bridges, LayerZero also allows cross-chain swaps. Decentralized exchanges (DEXs) such as Sushi, Hashflow, WOO Network and others have already integrated LayerZero solutions to enable multi-chain swaps with their supported chains.
Similarly, money market protocols can leverage LayerZero technologies to enable cross-chain borrowing. Radiant Capital, deployed on Arbitrum and BNB Chain, do just that: users who place deposits with them can borrow on any of the eight LayerZero-supported chains.
Beyond the usual DeFi features, some multi-chain projects have gone a step further by turning their own tokens into omnichain fungible tokens (OFTs). Projects deployed on multiple chains, such as Trader Joe's, have turned their tokens into omnichain, using LayerZero to enable seamless 1:1 transfer of their own tokens across the chains in which they are deployed.
Cross-chain governance is also made possible by LayerZero: the Pendle tokenization protocol allows cross-chain voting, reward accrual, and increased rewards for users who have locked a PENDLE token into a voting PENDLE (vePENDLE). Multichain management support is likely to become increasingly important in the coming years to support the growing popularity of multichain protocols.
Following the deployment of OFTs, omnichain non-readable tokens (ONFTs) have also found their way into the mainstream. In particular, the popular NFT collection, Pudgy Penguins, has opened a bridge with LayerZero, allowing one of its collections, Lil Pudgys, to be connected to the Arbitrum, Polygon or BNB Chain. Projects such as OmniX have also begun to develop ONFT infrastructure such as ONFT trading, bridging and launchpad functions for the NFT space.
Technology in simple words
Let's imagine that Twitter users can message Instagram users or Facebook users can message Gmail users. It seems impossible now, doesn't it? The same goes for cryptocurrencies - you can't send a token from ETH to Solana Onchain without using a bridge or CEX.
Now, transferring a token from one blockchain to another requires a lot of extra steps: buy a token on the same network, find a bridge with the right token liquidity, pay for the gas for transactions. It's a long enough process.
LayerZero want to speed up this process by creating a new principle of interaction between smart contracts and applications from different networks, so that users can move tokens from different blockchains without resorting to extraneous DApps.
Summary
As protocols become increasingly multi-chain, the need for reliable bridging and interoperability between chains is greater than ever. To date, LayerZero has exceeded 115.4 million transactions sent through their protocol, secured over $10 billion in total blocked value, and processed just over $50 billion in transaction volume across nearly 80 DApps. As LayerZero matures as a product, innovative projects are likely to be developed on its technology, driving new opportunities in this space.
Series A ($6.3M) — Multicoin Capital (Lead), Binance Labs (Lead), The Spartan Group, Hypersphere Ventures, Genblock Capital, DeFiance Capital, Sino Global Capital, Robot Ventures, Protocol Ventures, Echelon Capital.
Extended Series A ($135M) — Andreessen Horowitz (Lead), Sequoia Capital (Lead), Coinbase Ventures, Multicoin Capital, Animoca Brands, Hypersphere Ventures, Polygon Ventures, CoinFund, Tiger Global Management, Dapper Labs, Stani Kulechov, Sandeep Nailwal, Santiago R. Santos, Volt Capital, Gemini, Matrixport, Kronos, Uniswap Labs Ventures, PayPal Ventures, GHAF Capital Partners, imToken Ventures, Zokyo, Muhabbit Capital, Echelon Capital, Avalanche VC, Fantom Foundation, Blockdaemon Ventures, cFund, Operator Partners, Space Whale Capital.
Undisclosed (N/A) — Christie's.
Series B ($120M) — Andreessen Horowitz, Sequoia Capital, Circle, NGC Ventures, OKX Ventures, Lightspeed Venture Partners, SamsungNext, Bond Capital, Bixin Ventures, Chapter One, OpenSea Ventures, Franklin Templeton Investments, Global Coin Research, Com2uS, BPEA EQT, Red Beard Ventures, IOBC Capital, King River Capital, Maple VC, Protofund, GS Futures, K5 Ventures, MVP Ventures, ATRUM.
Information regarding the tokenomics of the project, has not been disclosed. The following will provide speculation on how the $ZRO token will be used:
A) The $ZRO token could serve as a native token on the LayerZero network, facilitating transactions, payments and access to the various services offered by the platform. The token can also serve as a fee payment like ETH, which will increase the demand for its use.
B) Omnichain solutions, such as LayerZero, are characterized by allowing a single transaction to pass through multiple blockchains. With Omnichain, a message can be passed from Ethereum to Solana and Cosmos, with only one transaction needing to be signed by the end user. This saves users time and effort.
The total number of employees is 51-200 employees. LinkedIn link.
Bryan Pellegrino (Co-Founder & CEO) — has over 8 years of experience in the technology industry, specializing in startups. Bryan has a track record of successful product development. At his previous company, OpenToken, he was responsible for the growth and development of the company's ecosystem. Brian also co-founded Rho AI and Coder Den.
Ryan Zurich (Co-Founder & CTO) — has over fifteen years of experience in computer networking and information technology. In September 2010, Ryan founded Coder Den, a software development consulting firm that is still in business today. From November 2011 to March 2013, Ryan was also the CTO of Buzzdraft, an online daily fantasy sports games site. From January 2018 to March 2020, Ryan co-founded 80Trill, a smart contract writing, auditing, testing, and consulting company.
Caleb Banister (Co-Founder) — has been in the technology industry since 2005. Caleb began his career as a software developer at the UNH InterOperability Lab. In 2010, he co-founded Coder Den, where he developed and deployed full-fledged mobile apps, primarily for Android and iOS. In 2018, Caleb co-founded 80Trill and in 2019, he co-founded Minimal AI.
Ari Litan (COO) — served as a vice president at Morgan Stanley from May 2007 to March 2014. At Morgan Stanley, he was head of Emerging Markets Derivatives and responsible for annualized revenue. From January 2015 to June 2017, he was co-founder and CEO of Swish. From June 2017 to March 2021, he served as Chief Product Officer at The Athletic.
❗️ For every two $ZRO tokens, you will receive one $STG token ($0.7).
- Vesting $ZRO: 12 months cliff and 24 months linear vesting.
- Vesting $STG: 50% is already available for sale, the remaining 50% will be unlocked within the next 12 months.
If you intend to invest in the project, write to Telegram account: @Beeble1 , indicating the desired amount.
— Website
— Discord
— Telegram
❗️ Fusion DAO does not make financial recommendations. You are responsible for determining whether any investment, investment strategy or transaction is suitable for you in accordance with your personal investment objectives, financial circumstances and risk tolerance, and you are responsible for any related losses. We do not make recommendations to buy, earn, sell or hold any digital assets. You should conduct your own due diligence before deciding to buy, sell or hold any digital asset.