LayerZero (ZRO)
LayerZero is a cross-chain interoperability platform designed to facilitate the development of decentralized applications (dApps) that can function seamlessly across various blockchains. Founded by Caleb Banister, Bryan Pellegrino, and Ryan Zarick in 2021, LayerZero is headquartered in Vancouver, British Columbia, Canada.
Overview
LayerZero operates as a messaging protocol rather than a blockchain, enabling smooth interaction between blockchains through smart contracts, Decentralized Verifier Networks (DVNs), and Executors. The LayerZero V2, implemented on January 29, 2024, enhances message verification and execution, offering developers greater control over security and execution. The update introduces DVNs to replace the V1 Oracle, promoting decentralization by allowing any entity capable of verifying cross-chain data packets to join LayerZero.
| Ticker | ZRO |
| Category | Smart Contract Platform |
| Website | https://layerzero.network/ |
| @LayerZero_Core | |
| Contract Addresses | |
|---|---|
| ethereum | 0x69...cd Copied! |
| binance-smart-chain | 0x69...cdCopied! |
| optimistic-ethereum | 0x69...cdCopied! |
| arbitrum-one | 0x69...cdCopied! |
| polygon-pos | 0x69...cdCopied! |
| base | 0x69...cdCopied! |
| avalanche | 0x69...cdCopied! |
With features like permissionless execution, LayerZero introduces Executors to handle execution on destination chains, simplifying gas payments and offering customizable settings. The platform increases throughput by providing options for lazy or strict nonce enforcement, allowing developers to choose between in-order or out-of-order transaction execution.
Ultra-Light Node
The Ultra-Light Node (ULN) is an innovative approach to cross-chain bridging and messaging, combining the security of on-chain light nodes with the cost-effectiveness of middle chains. ULN performs validation like an on-chain light node but streams block headers on demand via decentralized oracles, reducing storage and computational overhead while ensuring message security.
Infrastructure of LayerZero
LayerZero addresses limitations in existing cross-chain networks by offering a uniform, densely connected Omnichain Mesh Network that allows direct communication between any two supported blockchains. This network maintains consistent security and reliability across all connections and provides configurable and non-configurable security guarantees.
Endpoints
A LayerZero Endpoint is an immutable smart contract that standardizes interfaces for Omnichain Applications (OApps) to manage security configurations and message transfers. It consists of four modules: Communicator, Validator, Network, and Libraries, facilitating easy support for new chains without altering core modules.
Utility
LayerZero provides various utilities, including a cross-chain decentralized exchange, multi-chain yield aggregator, and multi-chain lending. These features enable seamless asset transfer across chains, access to yield opportunities, and cost-efficient lending.
Cross-chain decentralized exchange
LayerZero supports a cross-chain decentralized exchange (DEX) that uses native assets without intermediary sidechains. Users can deposit native assets on one chain and withdraw them on another, utilizing LayerZero's messaging capabilities to implement direct bridges and automated market-making.
Multi-chain yield aggregator
LayerZero's multi-chain yield aggregator allows users to access high-yield opportunities across multiple ecosystems, surpassing the limitations of single-chain yield aggregators and maximizing yield options.
Multi-chain lending
LayerZero's multi-chain lending service enables users to lend assets on their preferred chain and borrow directly on another chain, streamlining the process by removing intermediary steps like bridge and swap fees.
LayerZero airdrop
On June 14, 2024, the LayerZero Foundation announced the ZRO token airdrop, with 23.8% of the supply allocated to the community and builders. An initial 8.5% of this allocation was distributed on the first day of the airdrop, with further allocations planned over three years. Additional allocations and Request for Proposals (RFPs) for builders will be provided annually.
Partnerships
LayerZero has formed partnerships with notable entities, including Google Cloud and Polyhedra, to advance its technological capabilities and reach.
Funding
LayerZero has successfully raised capital through several funding rounds:
- On April 1, 2021, LayerZero secured $2 million in seed funding.
- On September 16, 2021, a Series A funding round led by Binance Labs and Multicoin Capital raised $6 million.
- On March 20, 2022, a Series B funding round led by a16z, FTX, and Sequoia raised $135 million.
Pudgy Penguins
On January 26, 2023, LayerZero partnered with Pudgy Penguins to enable cross-chain transfer of their NFTs. This collaboration involves Polygon, BNB Smart Chain, and Arbitrum, chosen for their user-friendly features. The partnership aims to enhance user experience in the Web3 ecosystem.
Initia Labs
On July 10, 2024, LayerZero collaborated with Initia Labs to develop an interoperability standard for Cosmos, allowing Cosmos SDK-based chains to connect with LayerZero-enabled chains.
Team
Leadership team
- Head of Research: Daniel P. Ahn
- Head of Strategy: Max Glassman
- Head of Talent: Richard Dietrich
Executive team
- Co-Founder and CEO: Bryan Pellegrino
- Co-Founder and CTO: Ryan Zarick
- COO: Ari Litan
Board of directors
- Angel Investor: Rob Sadow