Layer Zero

#Idea

In this review, I won't reiterate all the advantages of Layer Zero that have already been highlighted by other analysts. Instead, I will show you why this tech built by LZ Labs really matters from a user`s perspective especially considering the current emphasis on mass adoption.

Lets say Bob has 10 000 USDT in his wallet. Bob recently heard about this thing called 'DeFi' and wants to earn % on top of his deposit, rather than relying on his traditional bank(especially after some recent collapses in TradFi).

After spending some time studying the basics, Bob is ready to put his money to work. This is where things get interesting. Bob discovers an excellent APY for a deposit on Aave protocol recommended by his friend Alice. However, there's a catch: the interest rate is available for the stablecoin USDC on the Polygon network, while Bob holds USDT on the Ethereum network. To get that desired rate, Bob needs to:

Send his assets to a CEX, find the USDT/USDC pair,
Execute the exchange
Withdraw USDC from the exchange to the Polygon network, and assume the risk that the exchange might freeze his funds if they take issue with Bob for any reason. (It's worth noting that not all exchanges even support the Polygon network).
Make a deposit

Alternatively (if Bob has figured out what bridges are):

Find a suitable bridge that works with both the Ethereum and Polygon networks. (However, Bob must be cautious as most bridges are 3rd party solutions with the risk of potential fund loss)
Send his USDT to the Polygon network
Find a suitable DEX
Swap USDT/USDC (and pay network fees for each transaction).
Make a deposit

This is where Layer Zero comes into play. By utilizing projects like Stargate built by Layer Zero, Bob can save a significant amount of time and reduce the risk of fund loss. With just a few clicks, he can seamlessly transfer his assets and enjoy the desired interest rate.

Additionally, Layer Zero's bridges enable Bob to explore new blockchains(such as Aptos) and experience cross-chain NFT capabilities.

Overall, despite a few tech questions that may arise regarding Layer Zero (which can be explored in the #Technology category), it is a product that the Web3 field genuinely requires. Therefore, it deserves a solid 5-star rating.

Keep an eye out for future reviews of the #OnChain and #Technology categories if you're interested in taking a deep dive. Show Less