LayerZero, a blockchain interoperability protocol, is about to hit the cryptocurrency market with a dedicated airdrop for early adopters.
In this article, we’ll take a closer look at the project and see all the details and guidelines for trying to get the airdrop, which is expected to arrive within a year at the latest.
What is LayerZero and how can you get involved in the airdrop?
LayerZero, is an omnichain interoperability protocol that provides a communication layer between applications developed on different blockchains, with the aim of simplifying the user-side transition of money between incompatible substrates.
The protocol also provides benefits to developers who can implement inter-chain applications similar to decentralised cross-chain exchanges or multi-chain revenue aggregators without interruption and without relying on an intermediary.
Simply put, LayerZero can be described as the first trustless protocol that allows direct transactions between different blockchains, giving individuals a tool to fragment an asset across separate infrastructures.
On the technical side, LayerZero is a user application (UA) running an ultra-light node (ULN) that can transfer messages between two on-chain endpoints: oracles and relayers.
When a UA sends a message from network A to network B, the message is routed through the endpoint on network A. The RPC then notifies the Oracle and Relayer selected to operate the message and the destination blockchain.
The Oracle forwards the blockchain header to the endpoint on Chain B and the Relayer then sends proof of the transaction. The proof is validated on the end network and the message is forwarded to the destination address.
This is a real breakthrough in terms of interoperability, as existing solutions that allow on-chain data transfer, such as Cosmos, Chainlink, Polygon, Polkadot and ThorChain, are all based on a mediation point and are not completely trustworthy.
To participate in the airdrop, it is necessary to interact as much as possible with some of the bridges and protocols in which LayerZero plays a central role.
LayerZero Airdrop: The Stargate Finance Protocol
To have a good chance of earning tokens from the LayerZero airdrop, it is essential to interact with certain bridges supported by the interoperability protocol using your own non-custodial wallet, such as MetaMask.
If you do not have a MetaMask wallet, you can download it for free here. Once you have downloaded the extension for your operating system, you will receive a randomly generated secret 12-word phrase (known as a private key): keep this phrase carefully on a hard copy and do not share it with anyone!
Coming back to us, by far the most important bridge to trade with is Stargate Finance, which integrated LayerZero technology in January this year.
In detail, you first need to have some ETH in your MetaMask wallet.
If you don’t have any, deposit a small fraction worth at least $50-100 via a central exchange (Binance, Coinbase, Okx, etc.).
Then go to the protocol’s website and click on “transfer“, where you can move cryptocurrencies from one network to another, paying a fee based on the starting blockchain. The operations to be performed are as follows
- Transfer a few fractions of ETH (0.03 ETH is sufficient) from the Ethereum network to the Arbitrum network;
- transfer the total amount received from the Arbitrum network to the Optimism network
- close the loop by transferring the funds from Optimism to Ethereum.
The cost for all transactions is currently around $40, but may drop in the coming days.
The main cost is on the Ethereum blockchain, which, unlike Arbitrum and Optimism, is not a Layer 2 and therefore has higher commission fees.
Next, the second manoeuvre is to buy a small amount of STG tokens (around 20-30 USD): you can do this conveniently on Binance, Kucoin or Kraken and transfer the tokens to MetaMask (best via the Arbitrum network to save on fees).
STG is the governance token of the Stargate protocol, which allows you to participate in internal community decisions.
Participating in on-chain discussions is crucial to being an active user and thus being rewarded in the event of a future airdrop.
In previous cases where projects from the crypto world have distributed tokens for free within the community, the “governance” factor has had a great influence on the eligibility criteria, so doing so with LayerZero may also be the right choice.
Other bridges with which you can perform on-chain transfers
In addition to Stargate, there are many other bridges built with LayerZero technology that you can interact with to be eligible for an airdrop.
While these airdrop hunting techniques do not guarantee a 100% cryptocurrency win, but will likely give you the best chance of success, here are 3 protocols you can use to perform on-chain transfers.
However, if you do not have funds on Avalanche, you must first deposit them by withdrawing from exchanges such as Binance, Bybit and Okx, or by using a bridge such as Multichain and transferring Assert from other networks such as Ethereum, Optimism, Fantom and Polygon.
Once this is done, you can buy BTC.b via the DEX traderjoe by swapping with the AVAX or WETH token.
If you use WETH in the swap, remember to keep a small fraction of AVAX to pay the commission fees (about 20 cents).
Once you are connected to the protocol, by connecting both the MetaMask and the Aptos wallet, you will be able to transfer any type of token, even stablecoins, from the Aptos blockchain to compatible EVMs such as Ethereum, Arbitrum, Optimism, Polygon, Avalanche and BNB Chain, and vice versa.
Make at least 3-4 on-chain transfers, moving at least USD 30-40 per transaction.
Little tip: Avoid transactions with the Ethereum network to save fees.
SushiSwap Bridge: Go to the trading section of Sushiswap, a well-known decentralised exchange in the DeFi world, and click on the “cross-chain” entry to enable token swaps between compatible EVM networks.
This feature allows you to receive a different token than the one transferred from the source blockchain: for example, you can choose to send ETH from the Arbitrum network and receive OP on the Optimism network, as in the example in the photo.
The fees for this operation are around 2-4 dollars.
LayerZero will most likely release an airdrop to early adopters of cross-chain interoperability protocols within a year at the most.
Starting today, moving a small portion of the assets held in one’s wallet and dedicating it to moving between different blockchains using LayerZero’s technology could prove to be an extremely profitable business.
Spending a few tens of dollars to pay commissions on DeFi protocols in the event of an airdrop would be rewarded with a premium likely to be worth at least $1,000.
It is not necessary to make transactions every day: it is considered sufficient to make at least 1-2 transactions per month on the platforms illustrated in the previous paragraphs.
Repeat this for 6 months or more and wait for an official response from the LayerZero team regarding the release and distribution within the community of the $ZRO token, which is already present in the project code on GitBook.