Layer3, a New York-based omnichain identity and distribution protocol, has raised $15M in a Series A funding round. This round was co-led by ParaFi and Greenfield Capital, with significant participation from Electric Capital, King River, Immutable, Lattice, Tioga, LeadBlock Bitpanda Ventures, Amber, Stateless, and GD1.
Addressing the dual challenge of attention and distribution in crypto
Layer3, an omnichain identity and distribution protocol, streamlines user engagement and token distribution for crypto projects. By aggregating user activity across multiple chains, Layer3 offers a unified perspective on onchain identities and enables efficient, targeted token distribution. Supporting over twenty-five blockchains, Layer3 serves millions of users globally, driving the next wave of crypto adoption.
Mission and challenges
Layer3 tackles the dual challenges of attention and distribution in the crypto space. While centralised tech giants monopolise attention, crypto protocols struggle to effectively reach users and reward them with tokens. Layer3’s innovative solution aggregates user activity across multiple chains and decentralised applications (dApps), providing a cohesive view of a user’s onchain identity and facilitating efficient token distribution.
Layer3 aims to revolutionise how crypto projects engage users and distribute tokens, fostering a more inclusive and accessible ecosystem.
“We believe everything will have a token, and there will be myriad ways for users to earn them. Tokens make it exponentially easier for projects to reach and retain users and reward engagement. But so far in crypto, tokens have been inefficient and costly for the projects that launch them,” stated Brandon Kumar, co-founder of Layer3.
Dariya Khojasteh, co-founder of Layer3, added: “Layer3 is the catalyst for a new era of user-owned value. In crypto, attention is action, and we aim to decentralise this new attention economy by making it 10-100x easier to reach users. Our vision unlocks the same market that created trillion-dollar internet behemoths in a network where the value generated from attention and engagement accrues directly to the users.”
Driving user engagement and adoption
Layer3’s interface offers users an engaging experience, allowing them to earn CUBEs (Credentials to Unify Blockchain Events) for their activities across various chains. These CUBEs serve as a record of their onchain actions, enabling precise and efficient token distribution. Since its launch, over ten million CUBEs have been minted.
The Layer3 platform supports more than twenty-five different blockchains within the Ethereum Virtual Machine (EVM) and Solana ecosystems. It has served over three million unique users across 120 countries and is used by prominent crypto teams, including Uniswap, Base, Arbitrum, Linea, Polygon, Gnosis, and Celo.
Strategic growth and future plans
This new funding round builds on previous investments, including a strategic round of $3.7M in 2022 and a $2.5M round in 2021, bringing Layer3’s total funds raised to $21.2 million. The company plans to launch the L3 token and a new AI-enabled protocol for optimising distribution strategies later this year.
Claude Donzé, Principal at Greenfield Capital, emphasised Layer3’s potential: “Layer3 is poised to revolutionise onchain value distribution by addressing critical challenges for both users and leading Web3 projects. For users, Layer3 offers a trusted, guided exploration of Web3 by rewarding them for meaningful engagement. For networks, protocols, and dApps, Layer3 provides a powerful solution to attract and retain the right users through targeted token distribution. Unlike the inefficient and costly methods of Web2 user acquisition, Layer3 leverages the unique advantages of token incentives, creating a decentralised distribution network that directs tokens to the most valuable users based on their onchain activity. With over $24 billion in tokens ready for distribution across major blockchain ecosystems, Layer3 is perfectly positioned to tap into this growing market and drive the next wave of crypto adoption.”
Ben Forman, Founder of ParaFi, highlighted the team’s strengths: “Attention is perhaps the scarcest resource in the onchain economy. How do you attract and retain users as a web3 project in a sustainable and organic manner? In today’s onchain environment, the lion’s share of networks and dApps are plagued with ephemeral user bases and negative unit economics. Layer3 aims to solve this problem by building a super-aggregator for the on- chain economy. Simply put, they are critical middleware for users to navigate onchain experiences. After leading the seed round in November 2021, we’re excited to double down on our partnership with Layer3. Working with Brandon, Dariya, and the team for over two and a half years, we have come to admire their speed of execution, deep understanding of product design, and a relentless focus on customer experience. Furthermore, Layer3’s data and growth metrics speak volumes about the value they are adding to users, networks and dApps. We look forward to supporting the Layer3 team on the next phase of their journey in reshaping web3 interactions.”
