ON–254: Zoomed-in on Layer3 🔬

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📝 Editor’s Note:

Welcome to our 4th installment of Zoomed-in, an onchain deep dive series from OurNetwork. This week we're zooming in on Layer3–one of the fastest-growing marketplaces in all of crypto–and are fortunate to be featuring some excellent guest coverage from Greenfield Capital.

Finally, a quick reminder that anyone can sign up to be a Zoomed-in contributor here or by pinging the Editorial Team (TG: @ofernau). We are always interested in featuring independent analysts looking to showcase their work.

Now let’s zoooooooom in.

• Layer3 is building a decentralized distribution network. A good way to think about it is as a two-sided marketplace: one side of the market is Layer1s, Layer2s, applications which Layer3 helps to reach, acquire, retain and engage the right users onchain. On the other side, there are consumers who discover and use chains and applications that are relevant to them. Since launch, Layer3 has driven 57M+ transactions.

• Now, let's look at Layer3's impact on a specific ecosystem. For instance, Layer3 has driven more than 17M transactions across OP Stack chains, which include Optimism Mainnet, Base, Mode, and Zora (all clients of Layer3). Over 675,000 users have completed 7M+ OP Stack quests, resulting in $2.0M in sequencer revenue for said Layer3 clients.

• Doing our own onchain analysis at Greenfield, we found that users become more active across all chains after becoming Layer3 users. Users did 35% more transactions in the first 3 months and 160% more transactions in the 12 months after they became Layer3 users.

• The L2 chain Linea is one of Layer3’s clients. One way to measure Layer3’s impact on Linea is by the gas spent by Layer3 users completing quests and minting CUBEs. Credentials to Unify Blockchain Events, CUBEs, are ERC-721 tokens minted by completing quests and are Layer3’s standard to track attestation onchain. CUBEs contain rich data such as the chain, app, timestamp etc. and live on IPFS. Layer3 CUBE mints and quest completions account for more than 30% of all gas spent on Linea recently.

• Now - and more interestingly - Layer3 users do a lot of transactions (and spend a lot of gas, and thus drive sequencer revenue for Linea) outside of completing quests and minting CUBEs. When looking at all transactions since a user has minted their first CUBE on Linea, Layer3 users account for more than 60% of all gas spent on Linea in recent weeks.

• Layer3 users are completing hundreds of quests and are minting CUBEs for attestation, as they earn ownership in the protocols they use through Layer3. For example, if a user completes an Arbitrum quest and mints the CUBE, they earn ARB. CUBEs are among the 5 most interacted contracts on Base, Arbitrum, Optimism, zkSync, Scroll and Zora. Those onchain credentials can be used by other protocols and applications to target users (e.g. users that have 50+ NFT-related CUBEs). Layer3 is becoming a core supplier of network activity to top protocols - soon, every team might need a Layer3 strategy. To date, more than 30M CUBEs have been minted.

• In traditional advertising models, platforms own their users’ data and extract all value from it. Layer3 inverts this model: users own their data and accrue value from protocols. Each CUBE minted increases the value of the credential network, as each CUBE minted increases targeting ability, which attracts more protocols that distribute value, which in turn attracts more users to Layer3 - and CUBEs are quickly becoming one of the most powerful credential networks. To date, more than 100,000 users have minted 50 or more CUBEs.

• There are over 300 live quests to try out on Layer3.
• Explore their exclusive campaign with Linea. 
• Learn more about Layer3's innovative staking model: Layered Staking.