Thread by @sv9tsick

@MetisDAO announced that @LayerZero_Labs is officially live on Metis Goerli Testnet👀

What exactly is Layer0 and how does it help the Metis?
Let's find out🧐

Professor #bullEtin, you have the floor🐂

#Metis #ETH #omnichain #LAYERZERO #DeFi #Layer2 #CROSSCHAIN

First and foremost, I would like to inform everyone that the LayerZero does not conduct any token giveaways, presales, testnet with prizes, or similar activities.🥺

Testnet is only for developers, beware of scammers❌

#Metis #omnichain #LayerZero #Defi #crosschain

#LayerZero is an Omnichain Interoperability Protocol that allows direct communication between any other chains.

We frequently hear about bridge hacks, people losing a lot of money, and the Layer0 is designed to solve this problem, so it is not called a bridge killer for nothing.

To understand what problem the project solves, we need to understand how existing cross-chain bridging works🧐

There are 2 categories
1⃣Having a consensus forming middle chain validate and forward messages between chains
2⃣Running a light node on-chain
🤯🤯🤯

#Metis #omnichain

🟢Middle Chain

These chains have full signing power over all messages that are received, checked and forwarded between chains

This makes them a point of failure
In the case of consensus corruption all of the liquidity in the chains involved can be emptied immediately.😱

#Metis

🟢On-Chain Light Node

Every block header for each pairwise chain on the opposing chain is received and checked by these nodes.

Messages in transaction proofs are forwarded and validated on chain against block headers.

#Metis #omnichain #LayerZero #Defi #crosschain

This is the most secure method of sending messages between chains

But it's also the most expensive costing tens of millions of dollars per day per pairwise chain to run an on-chain light node on #Ethereum😬

#Metis #omnichain #LayerZero #Defi #crosschain

One is safe but expensive, the other is cheap but not safe😟

LayerZero made a hybrid of these two nodes, the Ultra Light Node (ULN)
✅Security of a light node
✅Сost-effectiveness of middle chains

#omnichain #LAYERZERO #DeFi #CROSSCHAIN #Metis

How did they do it? They're cheating!😂

ULN uses the same validation as an on-chain light node, but instead of keeping all block headers sequentially, decentralized oracles stream block headers on demand.

What oracles? From @chainlink and @BandProtocol

#Metis #ORACLE

So a ULN is run by #LayerZero, a User Application (UA) programmable on-chain endpoint.

To transport messages between on-chain endpoints, LayerZero relies on 2 parties:
🟢The Oracle
🟢The Relayer

Let's see how it works👇
#Metis #omnichain #LayerZero #Defi #crosschain

✅UA ➡️endpoint on chain A
✅The endpoint➡️Oracle & Relayer
(message, destination)
✅The Oracle forwards the block header to the endpoint on chain B
✅The Relayer submits the transaction proof
✅The proof is validated on the destination chain and the message is forwarded there

Use Cases

LayerZero enables cross-chain
🔵State sharing
🔵Bridging
🔵Lending & Borrowing
🔵Swaps
🔵Governance

#Metis #omnichain #LayerZero #Defi #crosschain

🔵State sharing
This allows chains, DEXs etc. to have one single interface and code base for all cross-chain pairs

🔵Bridging
Unified liquidity across all chains with guaranteed finality on the source chain

#Metis #omnichain #LayerZero #Defi #crosschain

🔵Lending & Borrowing
With LayerZero you can collateralize on #Metis, borrow on #Solana, farm, repay, and the collateral is unlocked without bridging

🔵Swaps
You'll be able to swap from DOT on Polkadot to Metis in one single transaction

#Metis #omnichain #LayerZero #Defi

@LayerZero_Labs will allow to connect EVM chain with Non-EVM chain, while saving developers from writing a lot of code, as well as simplify the user experience

Hello LayerZero, we see you😉