Difference between revisions of "LayerZero (ZRO)"
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===How it works=== | ===How it works=== | ||
* [https://alphapls.substack.com/p/chainlink-ccip-layerzero-wars-crypto-web3?s=r From] Alphapls (28-3-2022): | |||
''"LayerZero is not a [[blockchain]], it is a protocol, largely operating [[Off Chain|off chain]] with ‘ultralight [[client]] end points’ which are [[Smart Contract (SC)|smart contracts]] built on chains it is aiming to connect. Chains will include [[Layer Two|L2s]], as well as [[Layer One|L1s]]; and later non-[[Ethereum Virtual Machine (EVM)|EVM]], as well as EVM. LayerZero Endpoint exists on each (supported) chain, and any chain with a LayerZero Endpoint can conduct [[Cross Chain|cross-chain]] [[transactions]] involving any other chain with a LayerZero Endpoint. In essence, this creates a fully connected network where every node has a direct connection to every other [[node]]. With minor boilerplate code, any blockchain is supported.'' | |||
LayerZero refer to their light [[onchain]] [[clients]] as ‘LayerZero Endpoints’. They are made up of smart [[contracts]] which have three main functions: | |||
# communicator | |||
# [[validator]] | |||
# network | |||
''For simplification, I’m going to refer to all of the above as ‘endpoint’ and run a simple example.'' | |||
# ''[[Cross-chain]] action committed [[on chain]] A (e.g. against a deposited asset in a lending protocol on [[Ethereum (ETH)|ETH]], borrow [[US Dollar Coin (USDC)|USDC]] from the same lending protocol on [[Polygon (MATIC)|Polygon]]) and sent to the endpoint.'' | |||
# ''The endpoint sends information to the [[Relays|Relayer]] and [[Oracle]] - both separate entities and both [[off chain]].'' | |||
# ''The Oracle confirms the [[Block Header|block header]] (the Oracle on [[testnet]] was [[Chainlink (LINK)|Chainlink]]).'' | |||
# ''The [[Relayer]] confirms the [[transaction]] on chain A (it’s function is similar to an Oracle but looking for a different bit of data).'' | |||
# ''Presuming everything is in order, the rest of the action stated on chain A is committed on chain B ([[USDC]] is received in [[wallet]] on [[Polygon]]).'' | |||
''If there is any contention between the Relayer or Oracle as to information being passed on, the smart [[contract]] is paused and not committed to chain B. To ensure valid delivery, the only requirement is that for any given message sent using the LayerZero protocol, the Oracle and Relayer must be independent of each other. The protocol itself does not require any specific implementation of a Relayer, and in theory the users of LayerZero could even implement their own Relayer service. This design allows users to be sure that the Relayer cannot collude with the Oracle, and this independence is what allows us to implement [[trustless]] validated delivery."'' | |||
===Fees=== | ===Fees=== | ||
===Upgrades=== | ===Upgrades=== | ||
===Staking=== | ===Staking=== | ||
====Validator Stats==== | ====Validator Stats==== | ||
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* From their [https://medium.com/layerzero-official/the-omnichain-future-is-here-74389f6d70c3 announcement] (15-3-2022): | * From their [https://medium.com/layerzero-official/the-omnichain-future-is-here-74389f6d70c3 announcement] (15-3-2022): | ||
''"Stargate, the first [[bridge]] to solve the Bridging Trilemma, launches on top of LayerZero (and all 7 chains) in two days. Learn about how to participate in [[liquidity]] generation event that starts in two days [https://medium.com/stargate-official/stargate-a-farewell-to-bridges-28831d0f9439 here]."'' | ''"[[Stargate Finance (STG)|Stargate]], the first [[bridge]] to solve the Bridging Trilemma, launches on top of LayerZero (and all 7 chains) in two days. Learn about how to participate in [[liquidity]] generation event that starts in two days [https://medium.com/stargate-official/stargate-a-farewell-to-bridges-28831d0f9439 here]."'' | ||
==Roadmap== | ==Roadmap== | ||
*Can be found [Insert link here]. | *Can be found [Insert [[LINK|link]] here]. | ||
==Usage== | ==Usage== | ||
===Projects that use or built on it=== | ===Projects that use or built on it=== | ||
==Competition== | ==Competition== | ||
* CCIP from [[Chainlink (LINK)|Chainlink]]. [https://alphapls.substack.com/p/chainlink-ccip-layerzero-wars-crypto-web3?s=r From] Alphapls (28-3-2022): | |||
''"CCIP will include all the functions [of] LayerZero, including a programmable [[token]] bridge to allow similar [[Decentralized Applications (DApps)|dApps]] to [[Stargate Finance (STG)|Stargate Finance]] to be built out.'' | |||
''The additional innovation with CCIP is the creation of ‘Hybrid Smart Contracts’ which will enable both [[On Chain|on-chain]] and [[Off Chain|off-chain]] [[smart contracts]] to work together, in conjunction with [[Cross Chain|cross-chain]] execution."'' | |||
==Pros and Cons== | ==Pros and Cons== | ||
===Pros=== | ===Pros=== | ||
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*Full team can be found [here]. | *Full team can be found [here]. | ||
*LayerZero is the child of [https://twitter.com/PrimordialAA Primo] and [[Ryan Zarick]] with input from well known ex-[[SushiSwap (SUSHI)|Sushi]] developer (and [[Tokemak (TOKE)|Tokemak]] advisor) 0xMaki. | |||
*[[0xMaki]]; full time bizdev | *[[0xMaki]]; full time bizdev | ||
Revision as of 02:52, 11 April 2022
From their docs (2-2022):
"LayerZero is an Omnichain Interoperability Protocol designed for lightweight message passing across chains. LayerZero provides authentic and guaranteed message delivery with configurable trustlessness. The protocol is implemented as a set of gas-efficient, non-upgradable smart contracts."
Basics
- Based in:
- Started in / Announced on: 16-9-2021
- Testnet release:
- Mainnet release:
- From EthHub (21-9-2021):
"LayerZero bills itself as “an omnichain interoperability protocol” that aims to connect all chains in a seamless way."
History
Audits & Exploits
- Bug bounty program can be found [insert here].
- Audit was done by SlowMist (15-3-2022).
Bugs/Exploits
Governance
Admin Keys
DAO
Treasury
Token
Launch
Token Allocation
Utility
Other Details
Stablecoin
Coin Distribution
Technology
- Whitepaper can be found here.
- Code can be viewed [insert here].
Implementations
- From their announcement (15-3-2022):
"We’re live on Ethereum, Avalanche, Polygon, BNB Chain, Fantom, Arbitrum and Optimism. In 6–8 weeks consider Solana, Terra, Cosmos Hub and Osmosis slam dunks and LayerZero to be everywhere in 4–6 months."
- Programming language used:
Transaction Details
How it works
- From Alphapls (28-3-2022):
"LayerZero is not a blockchain, it is a protocol, largely operating off chain with ‘ultralight client end points’ which are smart contracts built on chains it is aiming to connect. Chains will include L2s, as well as L1s; and later non-EVM, as well as EVM. LayerZero Endpoint exists on each (supported) chain, and any chain with a LayerZero Endpoint can conduct cross-chain transactions involving any other chain with a LayerZero Endpoint. In essence, this creates a fully connected network where every node has a direct connection to every other node. With minor boilerplate code, any blockchain is supported.
LayerZero refer to their light onchain clients as ‘LayerZero Endpoints’. They are made up of smart contracts which have three main functions:
- communicator
- validator
- network
For simplification, I’m going to refer to all of the above as ‘endpoint’ and run a simple example.
- Cross-chain action committed on chain A (e.g. against a deposited asset in a lending protocol on ETH, borrow USDC from the same lending protocol on Polygon) and sent to the endpoint.
- The endpoint sends information to the Relayer and Oracle - both separate entities and both off chain.
- The Oracle confirms the block header (the Oracle on testnet was Chainlink).
- The Relayer confirms the transaction on chain A (it’s function is similar to an Oracle but looking for a different bit of data).
- Presuming everything is in order, the rest of the action stated on chain A is committed on chain B (USDC is received in wallet on Polygon).
If there is any contention between the Relayer or Oracle as to information being passed on, the smart contract is paused and not committed to chain B. To ensure valid delivery, the only requirement is that for any given message sent using the LayerZero protocol, the Oracle and Relayer must be independent of each other. The protocol itself does not require any specific implementation of a Relayer, and in theory the users of LayerZero could even implement their own Relayer service. This design allows users to be sure that the Relayer cannot collude with the Oracle, and this independence is what allows us to implement trustless validated delivery."
Fees
Upgrades
Staking
Validator Stats
Liquidity Mining
Scaling
Interoperability
Other Details
Oracle Method
Privacy Method
Compliance
Their Other Projects
Stargate
- From their announcement (15-3-2022):
"Stargate, the first bridge to solve the Bridging Trilemma, launches on top of LayerZero (and all 7 chains) in two days. Learn about how to participate in liquidity generation event that starts in two days here."
Roadmap
- Can be found [Insert link here].
Usage
Projects that use or built on it
Competition
"CCIP will include all the functions [of] LayerZero, including a programmable token bridge to allow similar dApps to Stargate Finance to be built out.
The additional innovation with CCIP is the creation of ‘Hybrid Smart Contracts’ which will enable both on-chain and off-chain smart contracts to work together, in conjunction with cross-chain execution."
Pros and Cons
Pros
Cons
Team, Funding and Partners
Team
- Full team can be found [here].
- LayerZero is the child of Primo and Ryan Zarick with input from well known ex-Sushi developer (and Tokemak advisor) 0xMaki.
- 0xMaki; full time bizdev
Funding
Partners
(:
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